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In the BPP Revision Kit there is the following question: “A company’s trial balance at 31Dec shows a debit balance of 700000$ on current tax and a credit balance of 8400000$ on deferred tax. The directors have estimated the provision for income tax for the year at 4,5 million and the required deferred tax provision is 5,6 mil, 1,2 million of which relates to to a property revaluation . What is the P&L income tax charge for the year? ”
Can you please help me in understanding how the movement in deferred tax, including the revaluation of property, impacts the tax charge for the current year?
Watch me do it on the screen. The tax element of the old question 2 (before the new exam structure came in) were probably the two easiest marks to pick up. The topic is a walk in the park, can be done in less than 1 minute and is worth at least 2 marks and often 4 marks in the old questions 2
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