In simplistic broad brush terms......

Take Norwich accounts, there is cash generated that associated with the profit (revenue - costs). The profit is subject to tax. In simplistic terms part of the cash will pay the tax bill later and the rest of the cash can be used to pay off the debt.

However in calculating the tax there are capital allowances and sometimes there are loss allowances brought forward from prior years. NCFC used such loss allowances with respect to the big profit we generated last year.

Another source of cash comes from selling a capital item such as the land behind the River End. This is subject to a different type of tax calculation - Capital Gains Tax which I dont propose to go into any detail here. At the end of May 2005, if I remember rightly there was ?2.5m+ due (to NCFC) from the sale of the River End land which will obviously help to clear some of the outstanding debt.

Posted By: Financebod on January 22nd 2006 at 22:45:22

Message Thread

Jerome Bid Rumour (NCFC) - The General, Jan 22, 21:34:54
- no shit sherlock (n/m) (NCFC) - SCC 26, Jan 22, 21:45:59
- yeah...... (NCFC) - fareastcanary, Jan 22, 21:42:10
- Waste of money. (NCFC) - smithy, Jan 22, 21:38:36
  - dont spend before 6/4/06 (in effect 1/2/06) and we pay 30% tax on ?5.5m (n/m) (NCFC) - Financebod, Jan 22, 21:43:13
    - Long time since I sat Tax exams.... (NCFC) - Rob_ncfc, Jan 22, 22:14:21
      - I didnt want to complicate the situation re roll over reliefs (NCFC) - Financebod, Jan 22, 22:57:55
    - Thats bollocks... (NCFC) - Ben, Jan 22, 21:48:06
      - The TAX year is different from the clubs FINANCIAL year !!! (n/m) (NCFC) - Financebod, Jan 22, 21:56:07
        
        Never really understood that (NCFC) - Iwan Husarmi, Jan 22, 21:58:51
        
        some companies do run their Financial year in line with the tax year (NCFC) - Financebod, Jan 22, 22:02:48
        
        Ben - do you understand Corporation tax ? (n/m) (NCFC) - Financebod, Jan 22, 21:58:22
        
        Maybe you can explain this... (NCFC) - Ben, Jan 22, 22:00:48
        
        Whats the question ? (n/m) (NCFC) - Financebod, Jan 22, 22:10:38
        
        If the club used any profit to pay off debt before the end of the tax year... (NCFC) - Ben, Jan 22, 22:14:33
        
        In simplistic broad brush terms...... (NCFC) - Financebod, Jan 22, 22:45:22
        
        That far too complicated for me ;-) (NCFC) - Ben, Jan 22, 22:55:53
        
        ......but the club may not have had much choice in the timing of selling Ashton (n/m) (NCFC) - Financebod, Jan 22, 23:15:24
        
        Smithy has pointed out there may be roll over reliefs (NCFC) - Financebod, Jan 22, 23:13:49
        
        Sorry I meant this link... (NCFC) - Ben, Jan 22, 22:04:33
        
        FRS10 (NCFC) - smithy, Jan 22, 22:09:24
        
        and that means what? (n/m) (NCFC) - Ben, Jan 22, 22:10:34
        
        FRS10 (NCFC) - smithy, Jan 22, 22:18:40
        
        the gain arising (NCFC) - Financebod, Jan 22, 22:51:45
    - assuming we make a profit of ?5.5 million! (n/m) (NCFC) - smithy, Jan 22, 21:45:01
      - If we dont buy players you can rest assured that its going to be at least ?5.5m (n/m) (NCFC) - Financebod, Jan 22, 21:57:03
        
        so you think we would have broken even without selling ashton? (n/m) (NCFC) - smithy, Jan 22, 22:00:48
        
        Smithy - the clubs finances (NCFC) - Financebod, Jan 22, 22:30:10
  - where were we when worthy took over? and what has he done for us LOADS short memories hey (n/m) (NCFC) - darrendavid, Jan 22, 21:42:01
    - You fucking blind short sighted wanker, keep supporting the manager until he sends us into (NCFC) - Miss Piggy, Jan 22, 21:55:42
      - nicely put!! (n/m) (NCFC) - jimmy Neighbour1, Jan 22, 21:56:35
    - every dog has its day. No room for sentiment in business. (NCFC) - jimmy Neighbour1, Jan 22, 21:47:13
    - you are right, thanks for the memories worthy but you have taken us as far as you can (n/m) (NCFC) - phrankin, Jan 22, 21:44:18
    - all good things come to an end! (n/m) (NCFC) - smithy, Jan 22, 21:43:19
    - blah blah. yes we know that but he past 20 months (NCFC) - CV_nomad, Jan 22, 21:43:09
      - who would replace him then cause i cant think of anyone better grass greener or what (n/m) (NCFC) - darrendavid, Jan 22, 21:45:52
- it was posted earlier old news (n/m) (NCFC) - darrendavid, Jan 22, 21:36:05

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