Arkwright Ltd is a UK retail company who supply various household products online. The following information is available for Arkwright Ltd in respect of the year ended 31 March 2020. Trading profits The adjusted trading profit for tax purposes is 875,000, after taking account of capital allowances. Income from property Arkwright Ltd lets out two warehouses that are surplus to requirements. The first warehouse was let from 1 May 2019 until 30 January 2020 at a monthly rent of 3,500. On that date the tenant left, owing 2 months' rent which Arkwright Ltd were not able to recover. Another tenant was not found until August 2020. The second warehouse was let for the whole year at a rent of 5,500 per month. Insurance costs for the warehouses totalled 6,500. Interest paid on loans secured on the warehouses totalled 4,500. Interest received Arkwright Ltd received 18,500 of bank interest in the period. Dividends received During the year ended 31 March 2020, Arkwright Ltd received dividends of 61,000 from shares in Retail plc, an unconnected UK company. This figure was the actual cash amount received. Profit on disposal of shares On 31 March 2020, Arkwright Ltd sold its shares in Rollo plc, for 350,000. The shares had an indexed cost of 185,000 at the date of the disposal. The unindexed cost was 75,000. Required: (a) Calculate Arkwright Ltd's net chargeable gains for the year. (4 marks) (b) Calculate Arkwright Ltd's Corporation Tax liability for the year. (10 marks) (c) When is Arkwright Ltd required to pay its Corporation Tax liability and submit its Corporation Tax return for this accounting period? (2 marks) (d) Describe the main differences in the trading profits are calculated for a limited company compared with a sole trader. Arkwright Ltd is a UK retail company who supply various household products online. The following information is available for Arkwright Ltd in respect of the year ended 31 March 2020. Trading profits The adjusted trading profit for tax purposes is 875,000, after taking account of capital allowances. Income from property Arkwright Ltd lets out two warehouses that are surplus to requirements. The first warehouse was let from 1 May 2019 until 30 January 2020 at a monthly rent of 3,500. On that date the tenant left, owing 2 months' rent which Arkwright Ltd were not able to recover. Another tenant was not found until August 2020. The second warehouse was let for the whole year at a rent of 5,500 per month. Insurance costs for the warehouses totalled 6,500. Interest paid on loans secured on the warehouses totalled 4,500. Interest received Arkwright Ltd received 18,500 of bank interest in the period. Dividends received During the year ended 31 March 2020, Arkwright Ltd received dividends of 61,000 from shares in Retail plc, an unconnected UK company. This figure was the actual cash amount received. Profit on disposal of shares On 31 March 2020, Arkwright Ltd sold its shares in Rollo plc, for 350,000. The shares had an indexed cost of 185,000 at the date of the disposal. The unindexed cost was 75,000. Required: (a) Calculate Arkwright Ltd's net chargeable gains for the year. (4 marks) (b) Calculate Arkwright Ltd's Corporation Tax liability for the year. (10 marks) (c) When is Arkwright Ltd required to pay its Corporation Tax liability and submit its Corporation Tax return for this accounting period? (2 marks) (d) Describe the main differences in the trading profits are calculated for a limited company compared with a sole trader
