company tax return

meibaker

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

faith26

HI Meibaker are you doing the business tax full paper one

faith26

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

yes, thanks denise!
but how did u get your indexation £50,000??

faith26

£500,000 x 0.155 = 50,000

meibaker

thanks, i got it now!

faith26

Glad to help

faith26

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

hi, many thanks for your help!
regards may