5 Do-Not-Panic Ltd is a United Kingdom resident company that installs burglar alarms. The company commenced
trading on 1 January 2007 and its results for the fifteen-month period ended 31 March 2008 are summarised as
follows:
(1) The trading profit as adjusted for tax purposes is £315,000. This figure is before taking account of capital
allowances.
(2) Do-Not-Panic Ltd purchased equipment for £24,000 on 20 February 2007. The company is a small company
as defined by the Companies Acts.
(3) On 21 December 2007 Do-Not-Panic Ltd disposed of some investments and this resulted in a capital loss of
£4,250. On 28 March 2008 the company made a further disposal and this resulted in a chargeable gain of
£42,000.
(4) Franked investment income of £25,000 was received on 22 February 2008.
Do-Not-Panic Ltd has no associated companies.
Required:
Calculate Do-Not-Panic Ltd’s corporation tax liabilities in respect of the fifteen-month period ended 31 March
2008 and advise the company by when these should be paid.
(10 marks) 5 Do-Not-Panic Ltd – Corporation tax liabilities for the fifteen-month period ended 31 March 2008
Year ended Period ended
31 December 2007 31 March 2008
£ £
Trading profit 252,000 63,000
Capital allowances (12,000) (750)
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240,000 62,250
Capital gains (42,000 – 4,250) – 37,750
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Profits chargeable to corporation tax 240,000 100,000
Franked investment income – 25,000
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Profit 240,000 125,000
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Corporation tax
FY 2006 240,000 x 3/12 = 60,000 at 19% 11,400
FY 2007 240,000 x 9/12 = 180,000 at 20% 36,000
FY 2007 100,000 at 30% 30,000
Marginal relief
1/40 (375,000 – 125,000) x 100,000/125,000 (5,000)
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47,400 25,000
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Due dates 1 October 2008 1 January 2009
(1) Trading profits are allocated on a time basis: £252,000 (315,000 x 12/15) to the year ended 31 December 2007 and
£63,000 (315,000 x 3/15) to the period ended 31 March 2008. 8J–UKAD
Paper F6UK
8J–UKAE
Paper F6UK
(2) Separate capital allowance computations are prepared for each accounting period as follows:
Year ended 31 December 2007
Pool Allowances
£ £ £
Equipment 24,000
FYA – 50% (12,000) 12,000
–––––––– –––––––
12,000
–––––––
WDV carried forward 12,000
Period ended 31 March 2008
WDA – 25% x 3/12 (750) 750
––––––– –––––––
WDV carried forward 11,250
–––––––
(3) The capital loss of £4,250 for the year ended 31 December 2007 is carried forward.
(4) The profits chargeable to corporation tax for the year ended 31 December 2007 must be apportioned between the financial
years 2006 and 2007 because of the change in the small company rate of tax.
(5) The period ended 31 March 2008 is three months long so the relevant lower and upper limits are £75,000 (300,000 x
3/12) and £375,000 (1,500,000 x 3/12) respectively. | 
发表于 2008-10-11 14:43
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