We are currently preparing a professional service company surcharge calculation for a client and the current year case III income less Corporation tax charge is significantly higher that the distributable reserves of the company. Therefore, we are restricting the amount subject to the surcharge to the actual distributable reserves. My question is firstly is this correct and secondly, the reason for the lower distributable reserves is due to amortisation of Goodwill. Are you aware of revenue ever questioning the rate of amortisation etc in cases like this.
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