Stanmer Ltd has produced accounts for the year ended 31 May 2021. Profit before tax has been calculated at £1,750,000. Included in this calculation are; Interest paid on overdraft £27,900 Depreciation £113,500 Client entertaining (note 1) £34,750 Legal and professional fees (note 2) £34,000 Miscellaneous (note 3) £97,650 Notes; Made up of entertaining and 10 x Christmas food and drink hampers Legal and professional fees includes charges for chasing customer debt (£17,500) and for the purchase of a new freehold property (£3,500) Includes a £500 qualifying charitable donation to a national charity Revenue includes £10,000 of sales (£10 per unit) from a wholly owned subsidiary operating in a tax regime with lower corporate tax rates than the UK. HMRC considers that a more appropriate selling price would be £15 and will seek to make an adjustment to total taxable profit. The tax written down value in the general pool brought forward at 1 June 2020 was £365,000. The tax written down value in the special rate pool brought forward at 1 June 20 was £83,750. During the year Stanmer Ltd had additions of £123,000 for the general pool and additions of £22,000 for the special rate pool. Disposals of £43,250 were made from the general pool during the year. Calculate the capital allowances that Stanmer Ltd can claim for the year ended 31 May 2021 Prepare a corporation tax computation showing the total corporation tax due the for year ended 31 May 2021 Please clearly state AIA and QCD use table to illustrate process
Stanmer Ltd has produced accounts for the year ended 31 May 2021. Profit before tax has been calculated at £1,750,000. Included in this calculation are; Interest paid on overdraft £27,900
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