Foreign Income

This section is designed to analyse foreign income including controlled foreign companies. It includes the following sheets:

Where you have identified amounts you want to be treated as foreign income within the

Income statement

, you should analyse these from the

Expense and income analysis

or

Management expense analysis

sheet in which they arose. Select

Foreign income

from the

Analysed as

dropdown list on the row, and develop the

Foreign income

sheet by selecting

Insert sheet

from the

Insert

menu. An error will show on the sheet until this has been developed.

The sheet calculates the taxable amount per accounting period (including any foreign tax for which expense relief is claimed), and takes the amounts through to the relevant working paper. From the

Income category

dropdown list, you can select the different types of income that you want to analyse, such as trading income or loan relationship income. The two columns at the right hand side of the table allow you to choose how to treat any foreign tax that has already been paid in respect of the income.

If

Trading income

was selected from the

Income category

dropdown list, you should insert a trade by selecting

Business-trade or property

from the

Insert sheets

menu. If

Loan relationship

is selected, you are prompted to insert the

Loan relationships and derivatives

sheet. After this is developed, a row is added in the relevant place in the sheet. If it is a trading loan relationship and withholding tax is being deducted, then this inserts a row into the relevant

Adjustment of Profit

sheet to deduct the foreign tax from taxable profits. If it is a non-trading loan relationship, then a row is inserted into the relevant Adjustment of profit to deduct the income statement amount from taxable profits.

If the foreign income comes from miscellaneous activities, you will need to insert the

Miscellaneous income

sheet.

If foreign income comes from trading or non-trading IFA, you will need to insert the

IFA summary-Non-trading

and

IFA accounts note

sheets.

Where you have any CFCs, you will need to insert the

CFC summary

from the

Insert sheets

menu. After the sheet is added, you will need to insert the name of any CFCs and their

Territory of residence

. You should enter the relevant

Percentage of apportionable profits

and

creditable tax

together with any chargeable profits or any exemption due from the dropdown list.

After details for at least one CFC are entered on the sheet, an error shows on the

Return information

sheet until the

CT600B

is inserted. Columns in the

CFC summary

correspond with the

CT600B

in the Company Tax Return, and so values from the sheet transfer automatically to the return.