Corporation tax

Yes it would mean that the dividends were NOT received from associated companies (the correct term) and therefore should be included in the calculation of FII

Sir, I have a doubt in 1 part of the question 41 Molten-Metal PLC from BPP kit. The tax adjusted profit for the year ended 31 March 2015 is 2,470,144. This is before making any deductions required for interest payable. Interest payable During the year 31 March 2015 Molten metal plc paid loan stock interest of 22,500. Loan stock interest of 3,700 was accrued at 31 March 2015 with the corresponding accrual at 1 April 2015 being 4,200. This loan is used for trading purposes. --------------------------------------------------------------------------------------------------------- 22,500 and 3,700 are deducted from the TTP but why do they add back 4,200? Thanks.

This is the accruals concept from basic accounting. We know that for tax as with accounting interest is deducted on a payable basis not a paid basis. The interest payable therefore for the y/e 31 March 2015 is the amount paid plus the closing accrual and LESS the opening accrual (this was payable last period but paid this period - hence the need for it to be deducted now from what was paid in deriving the payable figure for this period.

Sir, in transferring chargeable gains in groups, should a group consist of 3 companies to transfer the gains to each other? Parent subsidiary 75% owned by parent and sub subsidiary 75% owned by subsidiary) Can a group of 2 companies transfer chargeable gains to each other(parent owning 75% of a subsidiary)? Thanks

Yes as per OT notes - each direct link must be minimum 75% and the indirect / effective must exceed 50% - therefore 75% x 75% = 56.25% Yes if parent owns 75% of a subsidiary then they are in the gains group and all the gains group provisions apply