PCTCT Gift Aid

charliemansfield

Unit 18 Buisiness Taxation FA 2009 Text book:

I appreciate this is a rather long winded question, but just wondered if anyone could offer assistance?

In PRACTICE EXAM PAPER 4 in the above text book, task 2.4 the question is calculating PCTCT, the gift aid payment is not taken away?

However in the very same question in task 2.3 on PRACTICE EXAM PAPER 3 the gift aid payment is removed.

Could someone please expalin why the gift aid payment is not removed in Practice Exam Paper 4.



In Practice Exam Paper 3, Gift Aid donation is reffered to as Gift Aid Donation.

In Practice Exam Paper 4 Gift Aid donation is refferd to as Gift Aid payment made.

Does this bear any relavance as to why gift aid is not removed in Practice Paper 4.

Many, Many Thanks Charlie

Rinske

You might need to specify if its Kaplan, Osbourne or BPP books.

Can't help you for the rest though, sorry.

charliemansfield

Its BPP Learning Media Text Book

Monsoon

Are they both about Ltd Companies? PCTCT is Corporation tax (Ltd Cos). The rules for donations differ between companies and individuals.

A company can't gift aid its donation. An individual can.
In some cases a charity donation is allowable against corporation tax, in others its not.

Does any of that help explain the apparent discrepancy?

charliemansfield

Both Ltd Companies....

Practice Paper 3

You are employed by Robbie Ltd, working in the accounts dept. You have been asked to prepare some tax info....

Practice Paper 4,

You work in the Tax Department of a manufacturing company trading as Hoppings Ltd.

So both Ltd Companies thanks for the help though.

pirate

I did the practice papers from BPP in June and I do recall there were a lot of errors on the papers. Have a quick search coz some of them were posted on this forum. I've leant my books to a friend so cant check it but I do recall there were some niggly errors in the answers
HTH
K