A company's taxable total profits for the year to 30 June 2020 are 800,000. In the nine

Question:

A company's taxable total profits for the year to 30 June 2020 are £800,000. In the nine months to 31 March 2021, the company incurs a trading loss of £700,000 and has no other income or gains. There are no Gift Aid donations in either period.

(a) Calculate the amount of tax that would be saved if the company made a claim to relieve the trading loss against total profits.

(b) How would this differ if the main rate of corporation tax for FY2020 had fallen to 17%, as was originally intended?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

See More Books

Question Posted: Feb 11, 2024 02:00 AM

See More Questions

A company's taxable total profits for the year to 30 June 2017 are 800,000. In the nine months to 31 March 2018 , the company incurs a trading loss of 700,000 and has no other income or gains. There...
The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2020 are shown below: The following information is also available: 1. On 1 July 2016, JJ Ltd paid 3,153,000 to acquire 75% of the...
The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2018 are shown below: Statements of comprehensive income for the year to 30 June 2018. Statements of financial position as at 30...
Estimate the errors involved in Exercise 63, parts (a) and (b). How large should be in each case to guarantee an error of less than 0.00001?
A binomial tree with three-month time steps is used to value a currency option. The domestic and foreign risk-free rates are 2% and 4% respectively. The volatility of the exchange rate is 20%. What...
A charged sphere with $1 \times 10^{8}$ units of negative charge is brought near a neutral metal rod. The half of the rod closer to the sphere has a surplus charge of $1 \times 10^{4}$ units....
A pendulum in a local reference frame (see Fig. 5.7) is constrained in a point along the $z^{\prime}$ axis so that it can swing freely in the $x^{\prime} y^{\prime}$ plane. The pendulum is...
Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now; $2,200 a year for nine years; or $31,000 at the end of nine years. Assuming you could earn 10 percent...
What industry is Airbnb in? Is Airbnb in a risky industry? Why/when Airbnb begin its operations? Has Airbnb announced an IPO, or possibly a SPAC deal, since it received its initial funding? If now...
A company has the following results for the four years to 31 March 2021: Calculate the total repayment of corporation tax (with interest) to which the company is entitled, assuming that: (a) all...
A company has the following results for the year to 31 October 2020: Assuming that a claim is made to relieve the trading loss against total profits of the lossmaking accounting period, calculate the...
Suppose you have a list of blood platelet counts from 500 patients in a hospital. Which of the following is most helpful in understanding the distribution of those values: frequency table, pie chart,...
Calculate ending inventory and COGS using (a) FIFO, (b) LIFO & (c) weighted average. Unit Cost Total Cost Units 35,000 152,000 a b 1-Jan Beginning Inventory Purchases Operating Expenses Ending...
A consumer has a budget of $50 to spend on either hamburgers or hot dogs. Hamburgers cost $5 each, and hot dogs cost $2 each. If the consumer's marginal utility for hamburgers is 10 and for hot dogs...
Sunland Company produces small lightweight camping trailers with rear kitchen facilities. The company's fixed costs are $920000 per year and its variable costs are 60% of the unit selling price of...
Maurizio Inc. has manufactured stage clothes for rock stars for the past century. His apparel has been worn by the Beatles, Rolling Stones & Elvis Presley. Perfect fit and glitter is what makes them...
Books and Brew (BB) is a large city bookstore that sells books and music CD's, and also has a cafe. Currently, BB uses a single-driver system to allocate its operating costs to each of its three...
Matching Questions ___ A. Additional terms ___ B. Strict liability ___ C. Merchantability ___ D. Different terms 1. An implied warranty that goods are fit for their ordinary purpose 2. Generally...
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
Terry bought a house for 65,000 on 1 October 2001 and occupied the house as his principal private residence. He lived in the house until 1 October 2007 when he went to stay with relatives in...
Samantha bought a house for 47,500 on 1 August 2000 and occupied the house as her principal private residence. On 1 June 2002 she began to use one-fifth of the house for business purposes....
Rupert bought a house in Manchester on 1 November 1999 for 75,000. He occupied the house as his principal private residence until 1 November 2003 when he left to work abroad for a year, living in...
Hard copy receipts, bar codes and QR codes are all examples of documents a company may use to track costs.
Which three activities are part of the function of accounting? Multiple select question. recording financial transactions classifying financial transactions interpreting financial transactions...
cis 114 You will create a minimum six-month budget. The budget for those sheets can be weekly, bi-weekly, or monthly as long as each budget sheet encompasses three months. * Without the required...

A company's taxable total profits for the year to 30 June 2020 are 800,000. In the nine

Question:

Step by Step Answer:

a There are no profits in the lossmaking period so the entire 700000 is set against the profits of 8...View the full answer

Taxation Finance Act 2020

Students also viewed these Business questions