ACCA. Paper F6 Taxation. June 2015 to March 2016 examination sittings FA2014. Interim Assessment Answers

Transcription

1 ACCA Paper F6 Taxation June 2015 to March 2016 examination sittings FA2014 Interim Assessment Answers To gain maximum benefit, do not refer to these answers until you have completed the interim assessment questions and submitted them for marking.

2 ACCA F6 (UK): TAXATION FA2014 Kaplan Financial Limited, 2014 The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, and consequential or otherwise arising in relation to the use of such materials. All rights reserved. No part of this examination may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission from Kaplan Publishing. 2 KAPLAN PUBLISHING

3 INTERIM ASSESSMENT ANSWERS SECTION A 1 C 2 B 3 D 4 A PAA (Born between 6 April 1938 and 5 April 1948) 10,500 Net income 28,000 Less: Gross Gift Aid ( /80)) (375) Adjusted net income 27,625 Less: Income limit (27,000) 625 Reduction of PAA (50% 625) (312) Adjusted PAA 10,188 Income generated from lottery tickets, and NISAs (New Individual Savings Accounts) is exempt from income tax. Option A, C and D are incorrect because interest generated from company loan stock (corporate bonds) and from a NS&I Investment account is subject to income tax. Only capital improvements carried out prior to the beginning of the 2014/15 tax year are relevant when calculating an accommodation benefit in 2014/15. Morris is treated as ceasing to trade on 1 March 2015 in the tax year 2014/15. In 2014/15 he is assessed on his share of the profits for the year ended 30 June 2014 and 8 months ended 28 February Assessable trading profits 2014/15 Year ended 30 June 2014 Tax adjusted profits: (30% 108,000) 32,400 8 months ended 1 March 2015 Tax adjusted profits: (30% 120,000 8/12) 24,000 Less: Overlap profits (10,000) 46,400 KAPLAN PUBLISHING 3

4 ACCA F6 (UK): TAXATION FA B 6 C 7 A (41,865 7,956) 9% 3,052 (265,000 41,865) 2% 4,463 Class 4 NIC 7,515 Albert s earnings will include the mileage allowance paid in excess of 45p per mile i.e. 2,000 (20,000 miles (55p 45p)). So statement (ii) is true. The employer will continue to pay Class 1 secondary NICs in respect of Fred for as long as he works for the company. There is no upper age limit for Class I secondary contributions (only Class 1 primary contributions). Hannah will be charged Class 1 primary NICs on monthly earnings of 2,500. Occupational pension scheme contributions are not deductible for NIC purposes. TTP = Augmented profits 450,000 Corporation tax liability (W) (450,000 21%) 94,500 Less: Marginal relief 1/400 (500, ,000) (125) 94,375 Working: Corporation tax rate Fairway Ltd has two associated companies, Flag Ltd and Green Ltd. So the upper limit is reduced to 500,000 (1,500,000 1/3) and the lower limit to 100,000 (300,000/3). Corporation tax will therefore be paid at the main rate with marginal relief for the year ended 31 March Bunker Ltd is not an associated company as it is not controlled by Fairway Ltd. Green Ltd is an associated company as companies are included if they have been associated at any time during the accounting period. Dividends received from associated companies (e.g. Flag Ltd) are not franked investment income, and therefore do not impact the calculation of corporation tax. 4 KAPLAN PUBLISHING

5 INTERIM ASSESSMENT ANSWERS 8 A Maximum group relief is the lower of: (i) Cup Ltd s trading loss = 150,000 (ii) 9 D Saucer Ltd s available profits (after CY and brought forward losses) = 30,000 (180, ,000) Loss memorandum Loss of year ended ,000 CY claim against total profits before QCDs (22, ,000) (57,000) Carried forward and offset against first available trading profits (30,000) Loss carried forward 23,000 The loss is carried forward and offset against the first available trading profits from the same trade. The loss offset is automatic; no claim is required. It is not possible to restrict a current year claim to preserve QCD relief. 10 D 11 A A capital gains group comprises the parent company and its 75% (direct or indirect) subsidiaries and also, the 75% subsidiaries of the first subsidiaries and so on. However the parent company must have an effective interest of over 50% in all group companies Orange Ltd has a direct 80% holding in Lemon Ltd and a direct 90% holding in Tangelo Ltd. Grapefruit Ltd also forms part of the group as a 75% subsidiary of a 80% subsidiary Orange Ltd has an overall effective interest of over 50% (80% 75% = 60%). Lime does not form part of the group as it is not a 75% subsidiary of Tangelo. A company which does not pay tax at the main rate must pay its corporation tax liability within 9 months and one day of the end of the chargeable accounting period, not the period of account. KAPLAN PUBLISHING 5

6 ACCA F6 (UK): TAXATION FA2014 Remember a period of account is a period for which a company makes up accounts. An accounting period is a period for which a charge to corporation tax is made. It can never be longer than 12 months. A company which prepares a 15 month set of accounts to 31 December 2014 has a 15 month period of account. However it has two accounting periods; 12 months to 30 September 2014 and three months to 31 December D 13 C 14 B 15 C The company can amend the tax return within 12 months of the filing date. The filing date for the accounting period ended 31 March 2014 is 31 March So the company has until 31 March 2016 to amend the return. Initial late filing penalty 100 Daily penalties as 3 months late maximum 90 days (10 90) months late (7,200 5%) months late (not deliberate) (7,200 5%) 360 Maximum penalty 1,720 HM Revenue & Customs have until 12 months after the date the return is filed to raise a compliance check (enquiry) into the return. Failing to declare taxable income is tax evasion. The other two are examples of tax avoidance i.e. using the tax rules to minimise your tax liability. 6 KAPLAN PUBLISHING

7 INTERIM ASSESSMENT ANSWERS SECTION B 1 MELANIE ROAD Key answer tips This question covers a basic income tax computation and fundamental knowledge of the income tax self-assessment system, including payment dates and retention of records. Part (a) requires a calculation of an individual s income tax liability in order determine her balancing payment of tax due after tax credits and payments on account have been taken into account. Remember to state the due date of payment. This information is then used in part (b) to calculate the payments on account due for the following tax year. If your calculations in part (a) are incorrect you will still obtain full credit in part (b) provided you use your figures correctly. Part (c) was a straightforward question on the period for which records must be retained. (a) Income tax liability Balancing payment for 2014/15 Total Other income Savings income Dividends Pension income 35,000 35,000 NS&I interest (received gross) 2,000 2,000 Property income 25,000 25,000 Dividends (1, /90) 1,333 1,333 Total income = net income 63,333 60,000 2,000 1,333 Less: PAA (Note) (10,000) (10,000) Taxable income 53,333 50,000 2,000 1,333 KAPLAN PUBLISHING 7

8 ACCA F6 (UK): TAXATION FA2014 Income tax 31,865 at 20% (Other income) 6,373 18,135 at 40% (Other income) 7,254 2,000 at 40% (Savings income) 800 1,333 at 32.5% (Dividends) ,333 Income tax liability 14,860 Less: Tax credits PAYE (4,899) Dividends (1,333 10%) (133) Income tax payable 9,828 Less: Payments on account (4,000) Balancing payment 2014/15 8,828 Due date Melanie was born between 6 April 1938 and 5 April 1948 and is therefore entitled to a higher personal allowance of 10,500. However her net income clearly exceeds the income limit of 27,000 to such an extent that her PA will be reduced to the level of the basic PA of 10,000. (b) Payments on account 2015/16 Melanie is required to make two payments of account of 4,914 (9,828/2) each (W). The payments are due on 31 January 2016 and 31 July (c) Record keeping Melanie had a property business in 2014/15 and therefore must retain the records that support her 2014/15 tax return until 31 January 2021 (i.e. five year after the 31 January filing date). 8 KAPLAN PUBLISHING

9 INTERIM ASSESSMENT ANSWERS Marking scheme Marks (a) Pension NS&I interest (not grossed up) Property income Dividend income 100/90 PAA Restricted to basic PA IT liability 2.0 Tax credits Balancing payment Due date 7.0 (b) Amount of payments on account Due dates 2.0 (c) Retain records until 31 January 2021 Total 10.0 KAPLAN PUBLISHING 9

10 ACCA F6 (UK): TAXATION FA REGINALD Key answer tips This question asks for a calculation of property income and includes all the usual complications including treatment of repairs, a lease premium received, furnished lettings and treatment of losses. Note that it is not necessary to calculate the profit or loss separately on each property as it is the total of rents receivable less expenses allowable that is assessable. However, you may find it easier to prepare a summary as shown in the tutorial note at the end. Property business income 2014/15 Rental income: House 1 Expired lease (4,000 3/12) 1,000 New lease (5,000 3/12) 1,250 House 2 New lease (4,000 6/12) 2,000 House 3 Expired lease (3,000 6/12) 1,500 New lease Nil House 4 6,000 11,750 Assessment on premium received House 2 (W1) 1,760 13,510 Less: Allowable deductions Repairs (2,000 House 1 + 2,500 House 3) (4,500) Expenses (House 4) (7,000) Wear and tear allowance (W2) (520) Property business income assessment 1, KAPLAN PUBLISHING

11 INTERIM ASSESSMENT ANSWERS 1 House 1 Re-decoration costs are allowed in full as repairs. 2 House 2 The roof repairs are not allowable as they are deemed to be capital in nature, as they are making good a deficiency on purchase which was reflected in the purchase price. 3 House 3 Re-decoration costs are allowed as clearly incurred wholly and exclusively for the letting business. 4 House 4 The 2,000 loan interest is allowable as an expense of the letting business. 5 As the income and expenses of all properties are aggregated, any losses arising on the rental of a property are automatically offset against other property profits in the same year. If there is an overall property loss, the loss can only be carried forward and set against future property income. Workings (W1) House number 2 Assessment on premium received Premium received 2,000 Less: 2% (7 1) 2,000 (240) Assessable premium 1,760 An alternative method of calculating the assessment on the premium received: = 2,000 (51 7)/50 = 1,760 (W2) House number 4 Wear and tear allowance Rents received 6,000 Less: Water rates (200) Council tax (600) 5,200 10% 520 KAPLAN PUBLISHING 11

12 ACCA F6 (UK): TAXATION FA2014 Alternative presentation An alternative presentation of the answer is shown below. However this is not the method used in the ACCA examination answers. House 1 House 2 House 3 House 4 Total Rent receivable 2,250 2,000 1,500 6,000 11,750 Premium assessable 1,760 1,760 Repairs (2,000) (2,500) (4,500) Expenses (7,000) (7,000) Wear and tear allowance (520) (520) 250 3,760 (1,000) (1,520) 1,490 The assessable amount for 2014/15 will be 1,490. Marking scheme Marks House 1 rental income Re-decoration House 2 rental income Lease premium Roof repairs House 3 rental income Re-decoration House 4 rental income Wear and tear allowance Loan interest Total amount assessable Total KAPLAN PUBLISHING

13 INTERIM ASSESSMENT ANSWERS 3 MURRAY PLC Key answer tips This question covers corporation tax payment dates for large companies and national insurance contributions (NICs). The corporation tax part requires an explanation of when instalment payments are due which was straightforward provided the rules had been learnt. The rules must then be applied to a given scenario. As the company has a 12 month accounting period again this was relatively straightforward. Part (b) requires a calculation of NICs payable by both a director and the company. Provided you were familiar with the definition of earnings for NIC purposes this should not have caused any problems. Make sure that you clearly identify the classes of NIC payable by both parties as required in the question. (a) (i) Quarterly instalment payments y/e 31 December 2014 Large companies have to make quarterly instalment payments in respect of their corporation tax liability. A large company is one paying corporation tax at the main rate. Murray plc has three associated companies, so the upper limit is reduced to 375,000 (1,500,000 1/4). Corporation tax will therefore be paid at the main rate for the year ended 31 December The exceptions for quarterly instalments do not apply because Murray plc was also a large company for the year ended 31 December (ii) Corporation tax liability y/e 31 December 2014 Murray plc s corporation tax liability for the year ended 31 December 2014 is 185,680 (W). Working: Corporation tax liability FY2013: (863,628 23% 3/12) 49,659 FY2014: (863,628 21% 9/12) 136, ,680 The year to 31 December 2014 straddles FY2013 and FY2014. As the rate of tax is different in the two financial years the corporation tax liability must be calculated separately for each financial year. KAPLAN PUBLISHING 13

14 ACCA F6 (UK): TAXATION FA2014 The company was required to pay its corporation tax liability in four quarterly instalments of 46,420 (185,680 1/4) as follows: , , , , ,680 For a 12 month accounting period instalments are due on the 14th of months 7, 10, 13 and 16 after the start of the accounting period. (b) National Insurance contributions Class 1 NICs are payable by Brenda and the company in respect of Brenda s earnings and Class 1A NIC is payable by the company in respect of her benefits. Payable by Brenda Class 1 (41,865 7,956) 12% 4,069 (175,000 41,865) 2% 2,663 6,732 Payable by Murray plc Class 1 (175,000 7,956) 13.8% 23,052 Class 1A (8, %) 1,104 Working: Earnings Salary (10,000 12) 120,000 Bonus 50,000 Vouchers 5, ,000 For a director Class 1 NICs are always calculated on an annual basis. 14 KAPLAN PUBLISHING

15 INTERIM ASSESSMENT ANSWERS Marking scheme Marks (a) (i) Definition of large company Explaining that company large in year ended Exceptions do not apply as company large in PY 3.0 (ii) Calculation of tax liability Amount of each instalment Due dates for each instalment 3.0 (b) Earnings Class 1 primary correct Class and calculation 1.5 Class 1 secondary correct Class and calculation Class 1A 4.0 Total 10.0 KAPLAN PUBLISHING 15

16 ACCA F6 (UK): TAXATION FA JOSEPH KENT Key answer tips This is a good test of the basics of business income tax with capital allowances and opening year rules. It is important to note that the opening period is 15 months long and the effect that this has on the AIA and the writing down allowances in the capital allowances computations. Income tax assessable amounts Tax year Basis of assessment 2014/15 Actual ( ) 19,060 (W1) 6/15 7, /16 12 months ended ,060 (W1) 12/15 15, /17 CYB: y/e (W1) 80,420 Overlap profits ( ) = (19,060 3/15) = 3,812 When calculating the assessable amounts for a tax year, it is important to follow the correct sequence of workings. 1 Adjust the profits for disallowable items for each accounting period this step has already been done for you. 2 Calculate the capital allowances for each accounting period. 3 Deduct the capital allowances for each accounting period from the appropriate adjusted profit for each period. 4 Then allocate the adjusted profits after capital allowances into each tax year using the basis of assessment rules. Workings (W1) Net adjusted profits for each accounting period Adjusted profit Capital allowances (W2) 15 months to ,294 (34,234) 19,060 Year ended ,704 (3,284) 80, KAPLAN PUBLISHING

17 INTERIM ASSESSMENT ANSWERS (W2) Capital allowances computation General pool P.U Car 1 P.U. Car 3 Total allowances B.U. 15 months to Additions (no AIA): Car 1: CO g/km 12,200 Car 2: CO 2 95 g/km (second-hand) 3,500 Additions (with AIA): Plant and machinery 31,250 Less: AIA (Note) (31,250) 31,250 Nil Less: WDA (18% 15/12) (788) 788 Less: WDA (18% 15/12) (2,745) 80% 2,196 TWDV c/f 2,712 9,455 Total allowances 34,234 y/e Addition (no AIA): Car 3: CO 2 > 130 g/km 13,000 Disposal Car 1 (7,000) 2,455 Balancing allowance (2,455) 80% 1,964 Less: WDA (18%) (488) 488 Less: WDA (8%) (1,040) 80% 832 TWDV c/f 2,224 Nil 11,960 Total allowances 3,284 KAPLAN PUBLISHING 17

18 ACCA F6 (UK): TAXATION FA Capital allowances on car purchases are calculated based on the CO 2 emissions of the car as follows: CO 2 emissions of < 96g/km: if a new car = eligible for a FYA of 100%. CO 2 emissions of between g/km: if new or second-hand = put in main pool, eligible for a WDA at 18%. CO 2 emissions of > 130 g/km: if new or second-hand = put in the special rate pool, eligible for a WDA at 8%. Second-hand low emission cars are treated in the same way as a car with CO 2 emissions of between g/km. Private use cars are however given a pool of their own and the WDA must be calculated in full and deducted from the tax written down value, but only the business proportion is included in the total allowances for the period. The appropriate rates of WDA above are given in the tax rates and allowances. 2 Purchases of plant and machinery qualify for the AIA and the balance is eligible for the WDA of 18%. The maximum AIA is scaled up for the 15 month period to 625,000 (500,000 15/12). Additions in excess of the maximum AIA are eligible for the WDA of 18%. The WDAs must also be scaled up for the 15 month period. Marking scheme 2014/15 basis of assessment 2015/16 basis of assessment 2016/17 basis of assessment Overlap profits Capital allowances: Addition of car 1 Addition of car 2 Addition of plant and machinery AIA WDAs 15/12 Private use adjustment on car 1 Disposal of car 1 = balancing allowance Private use adjustment on balancing allowance Addition of car 3 WDAs for year ended Private use adjustment on car 3 Summary of adjusted profits after capital allowances Total Marks KAPLAN PUBLISHING

19 INTERIM ASSESSMENT ANSWERS 5 TONY NASH Key answer tips This question is wide ranging and includes an adjusted trading profit computation, capital allowances, employment income benefits and investment income. The requirement is to calculate taxable income. As this is made up of a number of components made sure that you clearly set out in separate workings your calculations for the different sources of income and reference these workings in your taxable income calculation. Adjusted profit computations are always popular in exams. Note the requirement to include all items, even those which do not require adjustment which should be shown with a zero. These instructions must be followed in the exam, or else full marks cannot be obtained and easy marks will be lost. Note that the 15 mark income tax question in the exam may test both the rules for self-employed individuals and employees. The question also tests different sources of investment income. If income is exempt from tax state so in your answer as there will an easy mark for doing so. Tony Nash Taxable income 2014/15 Total Trading income (W1) 22,763 Employment income (W3) 23,917 Dividends (4, /90) 5,000 Government stock interest 5,900 NISA interest Exempt Total income 57,580 Less: PA (10,000) Taxable income 47,580 1 Government stock (gilt) interest is received gross. It should not be grossed up. 2 Income from NISAs is exempt from income tax. KAPLAN PUBLISHING 19

20 ACCA F6 (UK): TAXATION FA2014 Workings (W1) Trading income Tax adjusted trading profit year ended 5 April 2015 Net profit 19,480 Depreciation 2,244 Accountancy 0 Fees for planning permission (Note 1) 2,739 Replacement hard drive (Note 2) 0 New printer (Note 2) 340 Donation to political party (Note 3) 51 Trade subscription 0 Private telephone (576 25%) 144 Own consumption (Note 4) 808 Capital allowances (W2) 2,755 25,662 2,899 (2,899) Tax adjusted trading profit 22,763 1 Fees for planning permission are capital expenditure and not an allowable trading deduction. 2 The replacement hard drive is allowable since the whole computer is not being replaced and the expenditure is therefore treated as a revenue expense. The new printer is not allowable in the adjustment of profits computation, being capital in nature. However, capital allowances are available on the cost of the printer. 3 The political donation is disallowed, as unlike the trade subscription, it is not incurred wholly and exclusively for the purposes of the trade. 4 Goods for own consumption are valued at selling price. As no entries have been made in the accounts, an adjustment must be made for the full selling price. If the goods had been correctly removed from the accounts at cost, only the profit element would need to be adjusted for in the adjustment of profits computation. 20 KAPLAN PUBLISHING

21 INTERIM ASSESSMENT ANSWERS (W2) Capital allowances computation General Allowances pool TWDV b/f 13,417 Additions with AIA Printer (Note) 340 Less: AIA (340) 340 Nil WDA (18%) (2,415) 2,415 TWDV c/f 11,002 Total allowances 2,755 The new printer is not allowable in the adjustment of profits computation, but is eligible for capital allowances as plant and machinery eligible for AIA. (W3) Employment income Salary 15,000 Car benefit (W4) 4,110 Fuel benefit (W4) 4,557 Medical insurance (cost to employer) 250 Employment income 23,917 (W4) Car and fuel benefit CO 2 emissions of 142 g/km (rounded down to 140 g/km), available all year % Basic % for petrol car 12 Plus: (140 95) 1/5 9 Appropriate percentage 21 Manufacturer s list price 25,000 Less: Capital contribution (see Note below) (4,000) 21,000 KAPLAN PUBLISHING 21

22 ACCA F6 (UK): TAXATION FA2014 Car benefit (21,000 21%) 4,410 Less: Contribution towards provision of car (25 12) (300) 4,110 Fuel benefit (21,700 21%) 4,557 When working out the car benefit, the list price is reduced by any capital contribution, up to a maximum of 5,000. Contributions towards the running cost of the car are deducted from the car benefit. Marking scheme Marks Dividends grossed up Government stock not grossed up NISA interest exempt PA Trading income Depreciation Accountancy Planning permission Replacement hard drive New printer Donation to political party Trade subscription Private telephone re business use Own consumption Capital allowances: WDA 18% Addition for AIA AIA at 100% Employment income Salary Car benefit: List price less capital contribution 21% Running cost contribution Fuel benefit Medical insurance Total KAPLAN PUBLISHING

23 INTERIM ASSESSMENT ANSWERS 6 COWALSH LTD Key answer tips This question requires a straightforward calculation of a company s corporation tax liability following calculation of the available capital allowances. When calculating the corporation tax liability, it is important to follow the correct sequence of workings. 1 Calculate capital allowances for plant and machinery. 2 Deduct the capital allowances from the adjusted profit to give the trading profits figure. 3 Calculate the assessable amounts for other sources of profits (e.g. interest income and chargeable gains). 4 Deduct qualifying charitable donations paid in the period to calculate the taxable total profits. 5 Calculate the FII and Augmented profits to determine the appropriate rate of tax for the appropriate financial year(s). 6 Calculate the corporation tax liability accordingly. Corporation tax computation y/e 31 March 2015 Trading profit 940,895 Less: Capital allowances P & M (W1) (537,145) Taxable trading profit 403,750 Interest income (W2) 81,500 Net chargeable gains (W3) Nil Total profits 485,250 Less: Qualifying charitable donation (5,000) TTP 480,250 KAPLAN PUBLISHING 23

24 ACCA F6 (UK): TAXATION FA2014 Corporation tax liability (W4) (480,250 21%) 100,852 Less: Marginal relief 1/400 (1,500, ,917) 480,250/546,917 (2,092) 98,760 Capital losses carried forward to set against future chargeable gains: (30,000 25,000) (W3) 5,000 Workings (W1) Capital allowances plant and machinery General pool Special rate pool Allowances TWDV b/f 190,000 24,000 Additions (No AIA): Car ( g/km) (Note 1) 18,000 Additions (With AIA): Machine 257,500 Lorry 250,000 From 'Repairs' (Note 2) 8, ,250 Less: AIA (Maximum) (500,000) 500,000 16,250 Disposals (25,000) (8,000) 199,250 16,000 WDA (18% 199,250) (35,865) 35,865 WDA (8% 16,000) (Note 3) (1,280) 1,280 TWDV c/f 163,385 14,720 Total allowances 537, KAPLAN PUBLISHING

25 INTERIM ASSESSMENT ANSWERS 1 There are no private use adjustments for a company. 2 Capital assets charged in the statement of profit or loss are added back in the adjustment of profits computation. If they then qualify as plant and machinery for capital allowance purposes, they will be eligible for the allowances in the normal way. 3 The balance in the special rate pool relates to a car which is sold in the year. Note that even though there are no assets left in the pool it is still written down. A balancing allowance can only occur on the general pool or special rate pool in the period of cessation of trade. (W2) Interest income Bank interest receivable 1,500 Loan note interest receivable 80,000 81,500 (W3) Net chargeable gains Chargeable gains for year 25,000 Less: Capital losses brought forward (25,000) Net chargeable gains assessable in year Nil Capital losses can only be set against chargeable gains in the period and any excess capital losses are carried forward and set against future chargeable gains only. (W4) Corporation tax liability TTP 480,250 Plus: FII (60, /90) 66,667 Augmented profits 546,917 As augmented profits are between 300,000 and 1,500,000 tax is paid at the main rate with marginal relief. KAPLAN PUBLISHING 25

26 ACCA F6 (UK): TAXATION FA2014 The dividend received from the UK company is exempt from corporation tax, but is FII as it is not from an associated company. Marking scheme Trading profit before CAs Plant and machinery CAs: TWDV b/f Addition car no AIA Additions qualifying for AIA machine and lorry Additions treatment of repairs AIA maximum Disposals WDA general pool WDA special rate pool WDA no private use Interest income Chargeable gain Correct use of capital loss Stating capital loss carried forward Qualifying charitable donation Dividend recognised as FII Corporation tax liability Total Marks KAPLAN PUBLISHING