The following information is available for Online Ltd for the year to 31 March 2024: Operating profit

Question:

The following information is available for Online Ltd for the year to 31 March 2024:

Operating profit Online Ltd's operating profit for the year to 31 March 2024 is £896,700. Depreciation of £21,660 and amortisation of leasehold property of £9,000 (see leasehold property note below) have been deducted in arriving at this figure.

Leasehold property

On 1 April 2023, Online Ltd acquired a leasehold office building, paying a premium of £90,000 for the grant of a ten-year lease. This building was used for business purposes by Online Ltd throughout the year to 31 March 2024.

Plant and machinery

On 1 April 2023, the tax written down values of plant and machinery were as follows:
The following transactions took place during the year to 31 March 2024:
The motor car sold on 14 May 2023 for £18,100 was originally purchased during the year to 31 March 2023 for £17,200. This expenditure was added to the main pool. The motor car purchased on 27 January 2024 for £13,700 has emissions of 48g/km.

Qualifying charitable donations

During the year to 31 March 2024, Online Ltd made qualifying charitable donations of £6,800. These were not included in arriving at the operating profit above.

Disposal of shareholding in Network plc

On 20 March 2024, Online Ltd sold its entire holding of £1 ordinary shares in Network plc for £90,600.
Online Ltd had originally purchased 40,000 shares (less than a 1% shareholding) in Network plc on 24 June 2010 for £49,300. On 7 October 2013, Online Ltd sold 22,000 of the shares for £62,200. Indexation factors are as follows:

Brought forward losses

As at 1 April 2023, Online Ltd had capital losses brought forward of £4,700 and trading losses brought forward of £12,500. The trading losses were incurred in the year to 31 March 2023 and the company wishes to relieve them as soon as possible.

You are required to:

Calculate Online Ltd's taxable total profits for the year to 31 March 2024.

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