Page 45 - Taxation F6

Small Business Corporation

• A company with a turnover of 20 million or less (the

20million rule is apportioned for the months that the

taxpayer traded).

• Other conditions for a small business in silk.

• Classification of a business as a small business affects the

calculation of the taxable income and tax liability.

• Specific items affected are:

• The capital allowance used is the 12E allowance other than

11e and 12C.

• The tax liability is based on the tables that will be provided

in the exam.

• As a result please take note of a small business as this will

affect the whole tax liability calculation.

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