Non corp distros


Quick summary for company with 31/3 year ends.
03/04 PCTCT £9k, divis £4k, retained Profit £5k. 0% CT tax paid.
04/05 PCTCT £19k, Divis £9k, retained Profit £10k

I've gone through the NCDR pdf on the HMRC site but this still isn't clear.

According to the site the tax for 04/05 is, £9K at 19%, £10K taxed at 11.25%
(approx underlying rate)

These are the issues that I see.
1) Retained profit from 03/04 now has no tax breaks, if it's distributed,
it'll be taxed. My tough luck I suppose!
2) If in 05/06 we assume, PCTCT is £10k, and Divis is £20k, then it seems
that while the company is distributing a dividend from reserves, the tax law
carries that excess NC distro forwards to be taxed in the next financial
year.

What concerns me is that of the £20K 05/06 divis, £10K has already been
taxed in 04/05 at 11.25%. When I carry that excess NC distro into 06/07
it'll be taxed again at 19%

Have I missed something here?







.