Business
Business, 19.08.2021 15:40, TheGaines4life

Brown Ltd, an unquoted trading company, prepares accounts to 31 March and has no related 51% group companies. The draft accounting profits of the year ended
31 March 2020 are £1,300,000. The following items have been added or deducted in arriving at
the draft accounting profit:
Note £
Depreciation X
Property income 1 X
Exempt dividends received 2 X
Bank interest receivable X
Entertaining 3 X
Requirements:
i. Giving necessary detailed figures and information of the table in order to compute Brown
Ltd's taxable total profits for the year ended 31 March 2020. Notes given that:
1) Property income relates to rental of land
2) Exempt dividends received from unrelated UK companies.
3) Entertaining costs includes both deductible and non- deductible item.
4) Company Marda is a very large company.
ii. Computing the corporation tax payable by Brown Ltd for the tax year ended 31 March
2020 basing on figures and information supposed.
iii. When will Brown Ltd be required to pay instalments of CIT for the tax year ended 31
March 2020?

answer
Answers: 1

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