In computing adjusted profit for companies income tax, which of the following is added back to net profit?
ARent paid on business premises
BDepreciation of non-current assetsCORRECT
CSalaries of production staff
DInterest on a business loan
ICANTaxationCompanies Income Tax: Adjusted Profit2025
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Why the answer is B, and why the others tempt you.
Depreciation is an accounting charge that is not allowable for tax; it is added back and replaced by capital allowances. Rent, staff salaries and business loan interest are wholly and exclusively incurred for the trade and remain deductible.
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