What are the types of charges and how can they be utilised?

Types: 1. Trade royalties, etc which are incurred as a necessary part of the trade. 2. Non trade, charitable donations which are not necessary for the trade. Utilisation: Charges on income can be set off against the total profits after relief for other losses: 1. These charges are entered in box 35 of the CT600 if there is a profit in the year. 2. Excess charges are entered in 135 of the CT600 if the charge was not wholly for the trade, there was a loss in the year and the charges are being surrendered as group relief. Only trade charges can be carried forward. Charges on income can be surrendered and claimed as group relief: 1. This information should be entered on the CT600C. 2. The amount that can be surrendered is restricted to the Excess of charges + Sch. A losses + Management expenses over the total profit of the company (S403 (1) and (3) ICTA 1988, S403ZD (1) and (2) ICTA 1988 and S403ZE ICTA 1988).