Reduce Non Taxable Income - “Remove non assessable income”

Reduce non taxable icon

I was unsurprised by the removal of expenses from costs. I was however pleasantly shocked to read that there are income lines that I can remove - and hence lower my corporate tax bill. This seems a bit too good to be true? I have listed a few examples:  

  • Gifts received are often not included as income unless they exceed £100 per year (that was a bit of a let down on size)
  • Damages received in a legal action is treated as compensation rather than income.
  • Some government grants

The most obvious item not to include is income from the sale of an asset (ie not a good or service but something used to run or operate the company). This is removed from income but then put back in as a capital gain, and taxed as such.

So - for most of us, most of the time, this is minor detail and is indeed too good to be true!