The full form of TTP in accounting is Taxable Total Profits.
Understanding Taxable Total Profits (TTP)
In the context of corporation tax, Taxable Total Profits (TTP) represents the overall profit a company is liable to pay tax on. This calculation includes profits from various sources, including chargeable gains.
Key Aspects of TTP
- Corporation Tax Liability: Companies are subject to corporation tax on their TTP.
- Capital Gains: Companies do not pay capital gains tax separately. Instead, any chargeable gains made from disposing of capital assets are added to their TTP, which then attracts corporation tax. This is according to provided reference which states "Companies do not pay capital gains tax, but instead the chargeable gains made on disposal of capital assets held by a company attract a corporation tax liability by being added to TTP".
In summary, TTP is a crucial figure in determining a company's overall tax obligation, encompassing both standard profits and any capital gains realized.
