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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4978
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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is there corporation tax /taxable income / taxable profit on

Resolved Question:

is there corporation tax /taxable income / taxable profit on an insurance payout for a limited company
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please expand on the nature of payout ...
Is it for loss of goods, consequential losses etc?

Many thanks
Customer: replied 3 years ago.

Hi, the payout was for Loss of stock in a fire and fixtures/fittings.

Expert:  taxadvisor.uk replied 3 years ago.
David, thank you for your prompt reply.

The company would have expensed the insurance premiums as normal allowable expenditure and got CT relief.

Any insurance payout would be treated as other income in the accounts of the company and therefore chargeable to corporation tax.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

Hi


 


Thank you for your reply,


 


Just to confirm - you are saying that this payout/income is taxable ?

Expert:  taxadvisor.uk replied 3 years ago.
David, thank you for your reply.

The insurance payout is taxable income, I'm afraid.

I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.

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