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The Taxable income template pulls together all of the company's income streams and reliefs to arrive at the taxable total profits for the period. It is the point at which trading income, property income, loan relationships, dividends, chargeable gains, miscellaneous income and the various reliefs come together.

Table of contents 

When should I use this template?

Use it once the individual income and adjustment templates are complete. It consolidates their results, applies loss relief and other deductions, and produces the figure on which corporation tax is charged.

Before you start

Complete the income templates (trading, property, loan relationships, dividends, chargeable gains, miscellaneous) and the reliefs (losses, qualifying donations, group relief), as this template reads their results.

How does the computation work?

The template aggregates the taxable amounts from each income stream and deducts the reliefs in the correct order to arrive at taxable total profits. It incorporates the trading income tax computation and the losses calculations, so current-period and brought-forward losses, qualifying charitable donations and group relief are applied appropriately. Because it refreshes and reads the other templates' results, the taxable income figure updates as the underlying schedules change.

Where does the data come from?

Taxable income consolidates results from across the workflow — it is a computation, not a data-entry template:

  • income streams — trading income, property income, loan relationships, non-exempt dividends, the chargeable gains summaries and miscellaneous income;
  • reliefs and losses — the Losses memorandum, Losses carried forward relieved, Qualifying donations relieved and Group relief; and
  • the accounting figures underlying those, from the trial balance.

It applies the reliefs in the statutory order to arrive at taxable total profits, which feed the Tax calculation and the CT600.

What flows through to the rest of Corporation Tax?

The taxable total profits feed the Tax calculation, where the corporation tax rate (and any marginal relief) is applied. The figures also populate the relevant income boxes of the CT600.

Frequently asked questions

Do I enter figures directly here?

Generally not. Taxable income consolidates the results of the income and relief templates. Complete those first.

In what order are reliefs applied?

Reliefs are deducted in the statutory order — for example loss relief, then qualifying charitable donations — to arrive at taxable total profits. The template applies this ordering.

Why has my taxable income changed?

Because it reflects the underlying templates. As you complete the income, adjustment and relief schedules, the taxable income updates.