ACE Ltd has prepared a set of accounts for the 11 months to 31 March 2021.These accounts show a profit before tax of £1,500,000. Relevant information is: 

(i) Depreciation charged in the period was £136,945. 

(ii) UK dividend received were £147,260. 

(iii) The written down value of the company’s plant and machinery at 1 May 2020 for capital allowances purposes was as follows:

£ Main Pool 158,290 Managing director’s Jaguar motor car (emission 168g/km) 40,000

(iv) Additions and disposals were as follows: July 2020 Sold machinery (original cost £75,000) 28,450 December 2020 Bought plant and machinery 116,720 November 2020 Sold Jaguar motor car 35,000 November 2020 Bought BMW motor car (emission 170g/km) 50,000 February 2021 Bought motor lorry 64,900 

Required: 

(a) Compute the capital allowance figure for the 11 months accounting period ending 31 March 2021. 

(b) Calculate the corporation tax liability for the period ended on 31 March 2021 and state the date or dates on which this is due for payment.

Answer rating: 100% (QA)

a Comp ute the capital allowance figure for the 11 months accounting period ending 31 March 2021 ANS ... View the full answer