Unit 18 Preparing business taxation computations

This unit is about the preparation of tax computations for business and completing appropriate returns.

You are required to obtain 2 of the 4 elements

Element objective	Example activities to demonstrate competence
18.1 Prepare capital allowances computations This is about calculating capital allowances.	Classifying expenditure on capital assets according to statutory requirements and relevant tax laws Preparing capital allowances computations Re-computing capital allowances (audit).
18.2 Compute assessable business income This is about preparing assessable business income for partnerships or self-employed people.	Adjusting trading profits and losses for tax purposes Making adjustments for private use of assets by business owners Dividing profits and losses amongst owners Ensuring correct dates are used Re-computing assessable income (audit) Verifying assessable income (audit).
18.3 Prepare capital gains computations This is about preparing capital gains tax computations for companies and unincorporated businesses.	Identifying and valuing chargeable assets that have been disposed of Calculating chargeable gains and allowable costs Applying any reliefs available Re-computing capital gains (audit) Verifying accuracy of computations (audit).
18.4 Prepare corporation tax computations This is about preparing corporation tax calculations for resident companies.	Preparing taxable amounts Setting off and deducting losses and charges Completing returns Re-computing corporation tax calculations (audit) Verifying accuracy of computations (audit).

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