Section E – Corporation Tax Liabilities
1. Westmorland Ltd has the following income and outgoings for the year ending 31 March
2008. Compute the profits chargeable to corporation tax for the year ending 31 March
2008.
Tax-adjusted trading profit
£ 1,456,500
Property business profit
£ 25,000
Interest receivable
£ 10,000
Chargeable gains
£ 35,000
Gift Aid donation
-£ 10,000
2. From the calculation from question #, what is the corporation tax liability for the year
ended March 31, 2008?
3. Tax-adjusted trading profits/loss: Carlos Ltd has had the following results for its year
ended 31 March 2008. Capital Allowance for the year amount to £21,000. Calculate the
tax-adjusted trading profit/loss for the year ended March 31, 2008.
£
£
Gross Profit
30,000
Less: Expenditure
Depreciation
5,000
Allowable Cost
12,000
(17,000)
Net Profit
13,000
£ 14,000
£ 6,500
£ 15,600
