Business Tax AQ 2016 question - please help

Megan1 Registered Posts: 25
The following is a question and explanation from green light

James Ltd has trading profits of £450,000 for the year ended 31 March 2017. This included dividends received of £5,000 and a write off in the expenses of £10,000 due to theft of cash by a director. The taxable total profits are:
Correct £445,000.00

Explanation of the correct answer:
The dividends received are not taxable as they are not trading receipts. The loss due to theft is not allowable as this was carried out by a person who had control over the business.

I don't understand why the correct answer is £445000.
My working is 450000-5000+10000=£455000

Could anybody help please? Many thanks in advance.


  • Adele69
    Adele69 Registered Posts: 320
    It appears unlike a lot of examples to be working from Trading Profits, not Net Profits (from SPL) so the sums would be reversed, as far as I can see it. Otherwise your logic would be correct about deducting non-trading income and adding non allowable expense.

    I haven't done any green tests since half way through L3 as found errors and got no response on reporting them
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