How to deal with a Property Investment company

Introduction

This topic explains how to change trading profits to Schedule A profits on a CT600 and computation.

1. Log onto IRIS Business Tax and select the client.

2. From the main menu, select Client then View.

3. Change the Sub Type to Property Letting Company and click Save and Close.

4. From the Reports menu select Corporation Tax and Basic. You will see that the Profit is treated as Property Income.

The areas that will be populated on a ct600 are illustrated below:

• Selecting this option will suppress previous years’ profits if the Suppress profits from trade option had been selected.

To correct this, do the following:-

1. Select the relevant year from the posting entry box at the top of Business Tax.

2. Click the View Client icon.

3. Change the Sub Type to blank and click Save and Close.

4. From the main menu, select Edit then Corporation Tax Computation Options.

5. Deselect the Suppress Profits from Trade option and click OK.

6. Form the main menu, select Edit and then Posting.

7. Delete postings made in the Property Income and Property Expenses Categories.

8. From the main menu, click the View icon.

9. Change the Sub Type to Property letting company option and click Save and Close.

The previous year's trading income will now show as Schedule A profit automatically, rather than manually suppressing the profits from trade and entering postings for Property Income and Property Expenses.