Stanmer Ltd has produced accounts for the year ended 31 May 2021. Profit before tax has been calculated at £1,750,000.

Included in this calculation are:

Interest paid on overdraft £27,900

Depreciation £113,500

Client entertaining (note 1) £34,750

Legal and professional fees (note 2) £34,000

Miscellaneous (note 3) £97,650

Notes:

1. Made up of entertaining and 10 x Christmas food and drink hampers

2. Legal and professional fees includes charges for chasing customer debt (£17,500) and for the purchase of a new freehold property (£3,500)

3. Includes a £500 qualifying charitable donation to a national charity

4. Stanmer Ltd spent £15,500 on research and development expenditure which qualifies for the RDEC scheme

5. Revenue includes £10,000 of sales (£10 per unit) from a wholly-owned subsidiary operating in a tax regime with lower corporate tax rates than the UK. HMRC considers that a more appropriate selling price would be £15 and will seek to make an adjustment to total taxable profit.

The tax written down value in the general pool brought forward at 1 June 2020 was £365,000. The tax written down value in the special rate pool brought forward at 1 June 20 was £83,750. During the year Stanmer Ltd had additions of £123,00 for the general pool and additions of £22,000 for the special rate pool. Disposals of £43,250 were made from the general pool during the year.

Questions：

1. Calculate the capital allowances that Stanmer Ltd can claim for the year ended 31 May 2021

2. Prepare a corporation tax computation showing the total corporation tax due the for year ended 31 May 2021

Answer rating: 100% (QA)

O Captal alloccances can be clatlmed by stamerfor ended 31st ma... View the full answer