COURSEWORK

Coursework



Coursework

Task 1

Calculation of Capital Allowances for the plant & machinery for the twelve months to 31/3/2011

2011-12

Rate

Main Pool

Short Term Assets

Car

Total

Value Brought Forward

£ 120,000 £ 20,000 £ 11,000

Writing Down Allowance

20%

£ 24,000 £ 4,000 £ 2,200

Value to Carry Forward

£ 96,000 £ 16,000 £ 8,800

Capital Allowance

50%

£ 48,000 £ 8,000 £ 4,400 £ 60,400

Task 2

Calculation of the assessable trading income for the twelve months to 31/3/2011

£

£

Sales

1,455,000

Less cost of sales

995,000

Gross Profit

460,000

Add:

Non-trade interest received

4,000

Dividend received

18,000

Profit on sale of shares

65,500

Profit on sale of factory

50,000

137,500

Less:

Factory rent

10,000

Depreciation

45,000

Directors' salaries

85,000

Staff salaries

95,000

Administrative expenses

39,600

Bad debts written off

9,700

Selling & distribution expenses

15,700

300,000

Net Profit

297,500

Capital Allowance

60400

Assessable Trading Income

237,100

Task 3

Calculation of the chargeable gain, if any, on the sale of the factory

Chargeable Gain on Sale of Factory

Amount

Disposal Proceeds

£ 550,000

Cost

£ 500,000 £ 50,000

Annual Exempt Amount

£ 10,600

Taxable Gain

£ 39,400

Task 4

Calculation of the Chargeable Gain on The Sales Of The Shares in Cruisers ltd.

Chargeable Gain On The Sales Of The Shares

Share Pool

Rate

Number

Cost

Purchase May '93

£ 40.00

2000

£ 80,000

Purchase Jan '00

£ 60.00

2000

£ 120,000

4000

£ 200,000

Bonus Issued on Jan 2001

£ 0.25

1000

£ 200,000

5000

£ 200,000

Disposal in April 2010

£ 53.10

5000

£ 265,500

Chargeable Gain

£ 65,500

Task 5

Calculation of the profits chargeable to corporation tax (PCTCT) for the twelve months to 31/3/2011

Profits Chargeable to Corporation Tax

Amount

Assessable Trading Income

£ 237,100

Chargeable Gain on Sale of Factory

£ 39,400

Chargeable Gain On The Sales Of The Shares £ 65,500

PCTCT

£ 342,000

Task 6

Calculation of the Corporation Tax payable for the twelve months to 31/3/2011

£

£

Sales

1,455,000

Less cost of sales

995,000

Gross Profit

460,000

Add:

Non-trade interest received (note 1)

4,000

Dividend received (note2)

18,000

Profit on sale of shares (note 3)

65,500

Profit on sale of factory (note 4)

50,000 137,500

Less:

Factory rent

10,000

Depreciation

45,000

Directors' salaries

85,000

Staff salaries

95,000

Administrative expenses (note 5)

39,600

Bad debts written off

9,700

Selling & distribution expenses

15,700 300,000

Net Profit

297,500

Capital Allowance

60,400

Assessable Trading Income

237,100

Chargeable Gain on Sale of Factory

39,400

Chargeable Gain On The Sales Of The Shares 65,500

PCTCT

342,000

Capital Gain Tax

18%

18,882

Corporation Tax

30%

71,130 90,012

After Tax Profit

251,988

Task 7

Short Tax Return form CT600 (Short) (2007) Version 2

Page 1

Company - Short Tax Return form

CT600 (Short) (2007) Version 2

for accounting periods ending on or after 1 July 1999

Your company tax return

If we send the company a Notice to deliver a company tax return (form CT603) it has to comply by the filing date, or we charge a penalty, even if there is no tax to pay. A return includes a company tax return form, any Supplementary Pages, accounts, computations and any relevant information.

Is this the right form for the company? Read the advice on pages 3 to 6 of the Company tax return guide (the Guide) before you start.

The forms in the CT600 series set out the information we need and provide ...