Business tax ?!

NAJC
NAJC Registered Posts: 44 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
hey im having dfficulty understanding what the question wants me to do , for example:

global ltd preares accounts to 30th june and in the year 30/06/08 they earned profits of 35000 and had a capital gain of 8000 . During the year they had a gross gift aid donation of 800. On 1/7/07 they had a brought forward loss of 5000 and a capital loss of 5000.
so what would i do ?

thanks for any help :)

Comments

  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
    Probably looking for the PCTCT (Profits chargeable to corp tax) figure.
    The information given is enough for you to calculate this.
  • Marg22
    Marg22 Registered Posts: 84 Regular contributor ⭐
    Hi

    Please see below:-

    Profits earned 35,000

    Capital Gain 8,000
    Capital Loss (5,000)

    Capital Gain 3,000

    Less b/f loss (5,000)

    Total 33,000

    Gift aid is assumed to be gross
    for Ltd Co. (800)

    PCTCT 32,200


    Capital gains and losses are set off against each other, if it was a capital loss it would have been carried forward to the next tax year and set against any gains in that tax year until it was used up.

    Gift aid is the very last item to be deducted, so if the company had made a loss the gift aid would be lost. It can not be carried forward to the next tax year.

    Hope this helps

    Marg

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