company tax return

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
i am trying to do one of the tax return exam 1 on osborne book. but i am bit confused on what to write on it.
capital loss brought forward of £38,000, disposal of the factory: capital loss £27,500, disposal on shares: capital gain £32,420, so on the tax return form ct600,page 2. box 16 gross chargeable gain:£4,920?? is that right?! box 17 allowable losses incl losses brought forward: £4,920 ? box 18 net chargeable gains : nil
am i right??please help

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  • faith26
    faith26 Registered Posts: 32 Regular contributor ⭐
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    HI Meibaker are you doing the business tax full paper one
  • faith26
    faith26 Registered Posts: 32 Regular contributor ⭐
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    Right I have got it now, Box 16 should be NIL and Box 18 should be Nil as well and box 17 willhave nothing put in it

    Task 2.3 is

    Disposal of Factory 550,000
    Less cost (500,000)

    Less indexation allowance (50,000)

    Gain Nil

    (77,500 resricted to maximum of £50,000)


    Not sure this is what you wanted but if so hope it helps

    Denise
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    yes, thanks denise!
    but how did u get your indexation £50,000??
  • faith26
    faith26 Registered Posts: 32 Regular contributor ⭐
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    £500,000 x 0.155 = 50,000
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    thanks, i got it now!
  • faith26
    faith26 Registered Posts: 32 Regular contributor ⭐
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    Glad to help
  • faith26
    faith26 Registered Posts: 32 Regular contributor ⭐
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    its worked out like this

    Profits = £182,800 + (£18,000 x 100/90) = £202,800

    The company will therfore pay corp tax at small companies rate:

    PCTCT £182,800 x 21% = £38,388 Corp Tax
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    hi, many thanks for your help!
    regards may
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