4 Pumpkin Ltd purchased a p l o t of land in August 201 8 for £60,000, incurring legal fees of £3,000 o n acquisition.

Work to
improve drainage was carried out o n the land in 2019 at a cost of £25,000. The company sold the land in November 2023
for proceeds of £80,000, incurring selling costs of £1,750.
Requirement
What is the chargeable gain or allowable loss o n the disposal?
A (£9,750)
B £15,250
C £(8,000)
D £(6,750)
LO 4b

5 Party Ltd purchased a building for investment purposes i n January 201 8 for £150,000. The property was redecorated at a
cost of £24,000 and the single glazed windows were replaced with double glazing costing £40,000 i n December 2018.
The company sold the building in September 2023 for £425,000.

Requirement
What is the gain in Party Ltd's corporation tax computation for the year e n d e d 31 December 2023?
A £275,000
B £211,000
C £251,000
D £235,000
LO 4b

6 Tractor Ltd realised a chargeable gain of £16,000 o n disposal of a building in January 2024. Tractor Ltd has augmented
profits below the lower limit
Requirement
What is the tax suffered by Tractor Ltd o n its chargeable gain?
A £1,000
B £1,900
C £3,040
D £3,200
LO 4c

7 Lettuce Ltd was incorporated o n 1 1 May 2023. It opened an inte re st-bearing building society account o n 1 July 2023 and
began trading o n 1 January 2024. It will make u p its first set of accounts to 30 September 2024 and annually thereafter.

Requirement
What are the dates of Lettuce Ltd's first accounting period for corporation tax purposes?
A 1 1 May 2 0 2 3 - 3 1 December 2023
B 1 July 2023 - 31 December 2023
C 1 January 2024 - 30 September 2024
D 1 January 2024 - 31 December 2024
LO 5a
 8 Which of the following statements about corporation tax is true?
A A company which is centrally managed and controlled in the UK will always be liable to UK corporation tax o n its
worldwide profits.
B A company which is incorporated i n the UK will only be liable to UK corporation tax o n its worldwide profits if it is also
centrally managed and controlled in the UK.
C A company which is incorporated abroad and centrally managed a n d controlled abroad, will still be liable to UK
corporation tax o n its worldwide profits.
D A company which is incorporated abroad will never be liable to UK corporation tax o n its worldwide profits.
LO5d

9 Airedale Ltd was incorporated o n 1 1 June 2023. It opened an interest- be aring building society account o n 1 August 2023
and began trading o n 1 February 2024. It makes u p its first set of accounts to 30 September 2024 and annually thereafter.
Requirement
What are the dates of Airedale Ltd's first accounting period for corporation tax purposes?
A 1 August 2023 - 31 July 2024
B 1 1 June 2023 - 31 January 2024
C 1 February 2024 - 3 0 September 2024
D 1 August 2023 - 31 January 2024
LO 5a

1 0 Papillon Ltd has taxable total profits of £1 50,000 for its three-month accounting period to 31 December 2023. Papill o n Ltd
d i d not receive any dividends, and has n o associated companies.

Requirement
What is Papillon Ltd's corporation tax liability for the three months ended 31 December 2023?

Papillon Ltd's corporation tax liability £

LO5d

1 1 Jaffrey Ltd is a UK-resident trading company that made various disposals during the year e n d e d 31 March 2024.
Select how the resulting gains o r losses should b e treated in the corporation tax computation of Jaffrey Ltd for the year
e n d e d 31 March 2024.

Requirements
Loss of £5,900 o n the sale of two cars used in the business; each car cost and was sold for more than £6,000:
A Chargeable gain
B Exempt
C Allowable capital loss
Gain of £86,000 o n the sale of an investment property:
D Chargeable gain
E Exempt
F Allowable capital loss
LO4a
12 Lam Ltd began trading o n 1 February 2022 and had the following periods of account:
- 1 February 2022 to 31 July 2023
• 1 August 2023 to 30 April 2024 (when the trade ceased)
Requirement
Its first corporation tax accounting period was:
A 1 Februa ry 2022 to 3 1 Ju ly 2022
B 1 February 2022 to 31 January 2023
C 1 February 2022 to 3 0 April 2023
D 1 February 2022 to 31 July 2023
LO 5a

13 Jam Ltd has taxable total profits of £160,000 for the year e n d e d 31 December 2023. Jam Ltd received dividends from
unconnected companies of £25,000. It has no associated companies.

Requirement
What is the corporation tax payable by Jam Ltd for the year ended 31 December 2023?

Corporation tax payable

LO5d

1 4 Drisko Ltd has taxable total profits of £1,450,000 for the year ended 31 March 2024. During the year e n d e d 31 March
2024 it received exempt dividends from UK companies of £135,000 of which £20,000 were received from an 80%
subsid iary.

Requirement
What are Drisko Ltd's augmented profits for the year ended 31 March 2024?
A £1,585,000
B £1,565,000
C £1,470,000
D £1,450,000
LO 5b, 5 d

15 Laguni Ila Ltd has paid its corporation tax in quarterly instalments for many years. It has one 80% subsidiary. In the year
e n d e d 31 December 2023 Lagunilla Ltd has taxable total profits of £550,000. In December 2023 it received exempt
dividends of £300,000 from its subsidiary.
Requirement
By which date is Lagunilla Ltd's final corporation tax payment due f o r t h e year ended 31 December 2023?
A 1 4 April 2024
B 1 October 2024
C 31 December 2024
D 31 January 2025
LO 5b, 5 d
16 Pasta pic sold one of its warehouses o n 1 July 2023 for £2,125,000. The warehouse originally cost £432,000 in February
2018. O n disposal Pasta pic paid estate agents fees of £24,969. At acquisition legal fees were £3,000 and stamp duty land
tax was £12,960. During its ownership Pasta pic a d d e d a canteen to the building at a cost of £48,000.

Requirement
What is Pasta pic's chargeable gain o n this disposal?

Chargeable gain £

LO 4b

17 Ardent Ltd bought a factory o n 12 February 201 9 for £165,000. At acquisition, professional fees were £2,450 a n d stamp
duty land tax was £1,650. In May 2019 an extension was a d d e d to the factory at a cost of £23,000.
In October 2023 Ardent Ltd sold the factory, which had always been used in its trade, for £312,000. Prior to the sale,
Ardent Ltd repaired water damage o n one wall at a total cost of £3,000.
Requirement
What is the chargeable gain o n the sale of the factory?

Chargeable gain £

LO 4b

18 Rhodes Ltd has taxable total profits for the nine-month period ended 31 March 2024 of £1,088,600. Rhodes Ltd has n o
associated companies and received n o dividends.

Requirement
What is the corporation tax payable by Rhodes Ltd for the period ended 31 March 2024?

Corporation tax payable

LO5d

1 9 In the year ended 31 March 2024, Sky Ltd has taxable total profits of £30,000. It receives dividends of £12,000 from
unconnected companies.

Requirement
What is Sky Ltd's corporation tax liability for the year e n d e d 31 March 2024?

Corporation tax payable

LO5d
2 0 Cloud Ltd has provided the following information for the year e n d e d 31 May 2024:

Adjusted trading profits 42,000

Chargeable gains 10,000

Dividend income 9,000

Charitable donations paid 6,000

Cloud Ltd has n o associated companies.

Requirement
What is Cloud Ltd's corporation tax payable for the y/e 31 May 2024?
A £10,583
B £11,500
C £9,054
D £8,740
LO5d

21 Storm Ltd has taxable total profits of £1 90,000 and dividends received from unconnected companies of £8,000 for its 9-
month accounting period to 31 December 2023.
Requirement
What is the corporation tax payable?

Corporation tax payable

LO5d

22 Sun Ltd has taxable total profits of £100,000 in the y/e 31 March 2024, and receives dividends of £20,000 from
unconnected companies. Sun Ltd owns 60% of the shares in Light Ltd, and 45% of the shares in Dark Ltd.
Requirement
What is the corporation tax liability?
A £25,000
B £24,937
C £19,000
D £23,375
LO5d

23 Wing Ltd prepared accounts to 31 December 2024. On 1 March 2024 it purchased a print machine for £90,300 and a
hybrid car with emissions of 30 g / k m for £35,000. Wing Ltd has no tax written d o w n value brought forward in the main
pool at the start of the year.

Requirement
What are the total capital allowances?
A £96,600
B £22,554
C £125,300
D £90,300
LO 5c
2 4 Beak Ltd has tax-adjusted trading profits of £250,000 for the y/e 31 March 2024. At 1 April 2023 it had a tax written d o w n
value of £65,000 in the main pool. O n 1 May 2023 it purchased a machine for £1 9,000.
Requirement
What is Beak Ltd's trading income f o r t h e y/e 31 March 2024?
A £30,700
B £280,700
C £231,000
D £219,300
LO5c

25 Feather Ltd prepares accounts for an 1 8-month period to 30 September 2024. The tax written down value of the main
pool at 1 April 2023 was £96,000. Feather Ltd purchased a photocopier o n 1 July 2023 for £50,000.
Requirement
What are the capital allowances for each accounting period?
A 1 2 m/e 31 Mar 2 4 £67,280, 6 m/e 3 0 Sep 2 4 £7,085
B 18 m/e 30 Sep 2 4 £75,920
C 1 2 m/e 31 Mar 2 4 £26,280, 6 m/e 3 0 Sep 2 4 £6,275
D 6 m/e 30 Sep 2 4 £58,640, 1 2 m/e 30 Sep 2 4 £ 1 2, 725
LO 5c

26 Petal Ltd began trading o n 1 January 2023. O n 1 May 2023 it purchased a van for £47,000. The van is used 30% of the
time for private use of the managing director, and has CO 2 emissions of 40g/km.

Requirement
What is the maximum capital allowance claim available to Petal Ltd f o r t h e year e n d e d 31 December 2023?
A £8,640
B £5,922
C £47,000
D £32,900
LO 5c

27 Garage Ltd has a tax written d o w n value brought forward o n the main pool of £1 20,000 at 1 April 2023. During the year
e n d e d 31 March 2024 the following transactions took place:
* Purchase of equipment for £45,000
“ Sale of machine for £32,000

Requirement
What are the capital allowances available to Garage Ltd f o r t h e year ended 31 March 2024?

Capital allowances

LO 5c
1 1 Value a d d e d tax

1 Clementine orders some goods from Forty-Niner pic on 1 May. They are dispatched on 8 May. On 4 June Clementine
receives the respective invoice dated 2 June. Her payment arrives at the company on 7 June. Forty-Niner pic does not
operate the cash accounting scheme.
Requirement
Which of the following options is the tax point for the transaction?
A 1 May
B 8 May
C 2 June
D 7 June
LO6d

2 Matilda has been a VAT-registered trader for a number of years and has recently purchased various items for use in her
trade.
Requirement
Select the item on which Matilda cannot recover the input tax.
A Van accessories purchased a year ago
B Fixed partitions for use in the office
C A motorcycle for business deliveries
D Entertaining costs of UK business customers
LO 6e

3 Bob, who is not registered for VAT, has just completed 12 months' trading, the turnover details for the pastyear being as
follows:

£
Exempt supplies 28,000
Standard-rated supplies 58,000
Zero-rated supplies 29,000

Requirement
Which of the following options correctly identifies Bob's liability to register for VAT?
A He is not required to register.
B He must register, based on turnover of exempt and standard -rated supplies.
C He must register, based on turnover of standard and zero-rated supplies.
D He must register, based on turnover of exempt, standard and zero-rated supplies.
LO 6c
4 Charlene, a VAT-registered trader, invoices Bronco Ltd in November 2023 for standard -rated supplies of £1,000, excluding
VAT.
The following settlement discounts are offered.

Payment within Discount

7 days 10%

1 4 days 5%

21 days 2.5%

Bronco Ltd, whose normal credit term is 21 days, agrees beforehand to settle the invoice within 1 4 days, but actually takes
2 8 days.

Requirement
How much VAT is Bronco Ltd required to pay?
A £180
B £195
C £190
D £200
LO 6e

5 Viking Raiders Ltd began trading o n 1 January 2023. Details of the company's recent taxable turnover are as follows.

2023 £ 2024 £

January 720 January 12,970

February 1,220 February 13,960

March 2,250 March 10,770

April 2,490 April 11,860

May 3,890
June 4,620

July 5,870

August 5,890

September 5,920

October 7,170

November 9,800

December 10,270

Requirement
By what date must Viking Raiders Ltd notify HMRC of its liability to register?
A 29 February 2024
B 30 March 2024
C 31 March 2024
D 1 April 2024
LO 6c