A UK trading company had the following results for the year ended 31 March 2021:

£

Trading profits (before deduction of capital allowances) 493,000

Chargeable gains 30,000

Dividend received from other UK companies 5,000

Qualifying charitable payments made (10,000)

Capital allowances details are:

Brought forward at 1 April 2020

• Main pool £5,000
• Special Rate pool £45,000

Additions during the year

• Plant and equipment £120,000
• Integral features of a building (special rate pool) £70,000
• Car with low (45) CO2 emissions purchased for £20,000

Disposals

• Car with high CO2 emissions (special rate pool) sold for £10,000 (which was less than it cost)

The company has no related companies.

Required

1. Compute the company’s capital allowances claim.

2. Calculate the corporation tax taxable total profits, augmented profits and liability of the company for the year ended 31 March 2021. State when the corporation tax and corporation tax return are due.

3. Explain how company capital gains are or have been protected from inflationary gains. Include an explanation of the indexation calculation and when and why this stopped.

Answer rating: 100% (QA)

Capital allowances claim Plant and equipment 120000 Integra... View the full answer