Grielish Ltd is a UK resident trading company, manufacturing sports and fitness equipment. In the eight-month period to 31 December 2019, Grielish Ltd had a trading profit of 2,184,500. This figure has been adjusted (correctly for all items, except for capital allowances and loan relationships During the accounting period, Grielish Ltd made the following capital transactions: May 2019 Purchased some machinery for the factory, costing ES20,000 June 2019 Sold 7 acres of land for 450,000 incurring legal fees of 30,000 in connection with the sale. 10 acres of land was originally acquired for E500,000 in March 2012, with legal fees and stamp duty land tax incurred of 34,000 in total. At the time of disposal, the remaining 3 acres of land was valued at 200,000 Purchased a brand new heating system, costing 400,000 July 2019 Purchased a brand-new car for an employee. The car cost August 52,000, has CO2 emissions of 104g/km, and is used 15% 2019 for business RIERASAS September Sold some machinery for 128,000 and integral features 2019 for $5.000. No item wassal for more than cost Question 1 continues on the next page SR620039 2021 R Page 2/11 Question 1 continued Tax Written Down Values brought forward at 1 May 2019, were as follows: Main Pool Special Rate Pool E316,000 237,400 During the accounting period, the company accrued costs of 321,480 in respects of its loan relationships. None of these costs has yet been deducted in arriving at the company's taxable profit, and therefore require consideration, E Overdraft interest 27,340 Interest on a loan to purchase commercial property (see note ( 126,350 2 below) Arrangement fee in respect of the above loan 8.200 Interest on loan to acquire 10% stake in Foden Ltd, a UK 159,590 trading company Total 321,480 Other Information L Grielish Ltd accrued interest receivable of 342,000 in the accounting period. This relates to the purchase of long-term debentures for investment purposes. Grielish Ltd acquired a commercial premises on 1 July 2019 The company Immediately occupied 60% of the building and rented out the remaining 40% at 30,000 per month. The purchase was financed by way of an interest-bearing loan (see Loan Relationships above). Grielish Ltd incurs allowable costs of SR620039 2021 R Page 3/11 5,000 per month in relation to the rented section of the premises. Question 1 continues on the next page Question 1 continued . The company has capital losses brought forward on 1 May 2019 of 50,000 iv. Grielish Ltd has two wholly owned subsidiaries. v. purposes Grielish Ltd has always been a large company for the of Quarterly Instalment Payments. Required (a) Calculate Grielish Ltd.'s corporation tax liability for the six month period ended 30 September 2019. (20 marks Use the following RPi figures in your calculation, where appropriate September 2019 291.0 December 2017 278.1 June 2019 March 2012 289.6 240.8 (b) For the corporation tax liability calculated in part a), state the due dates for quarterly Instalments, and the amounts due on each date. (4 marks) (c) Grielish Itd sold one of the remaining three acres of land in March 2020 for 90,000, incurring costs on sale of 4,000. The value of the remaining two acres at the date of sale, was 120,000 Calculate the net proceeds (le, after costs and corporation tax) generated by this disposal. (6 marks) 1. 1. Background: Caleb Ltd is a UK resident trading company, manufacturing sports and fitness equipment In the eight-month period to 31 December 2019, Ltd had a trading profit of 2,184,500. This figure has been adjusted correctly) for all items, except for capital allowances and loan relationships. During the accounting period, Caleb Ltd made the following capital transactions: Purchased some machinery for the factory, costing May 2019 ES20,000. Sold 7 acres of land for 450,000 incurring legal fees of 30,000 in connection with the sale. 10 acres of land was originally acquired for ES00,000 in March 2012, with lega June 2019 fees and stamp duty land tax incurred of E34,000 in total. At the time of disposal, the remaining 3 acres of land was valued at $200.000 Purchased a brand new heating system, costing July 2019 400,000 Purchased a brand new car for an employee. The car cost August ES2,000, has CO2 emissions of 104g/km, and is used 15% 2019 for business purposes September Sold some machinery for 128,000 and integral features 2019 for 6.000. Na item was sold for more than cost. Question continues on the next page SA 2021 Par2/13 Question 1 continued Tax Written Down Values brought forward 1 May 2019, were as follows: Main Pool Special Rate Pool 316,000 E237,400 During the accounting period, the company accrued costs of 321,480 in respects of its loan relationships. None of these costs has yet been deducted in arriving at the company's taxable profit, and therefore require consideration. E Overdraft interest 27,340 Interest on a loan to purchase commercial property see note 126,350 2 below) Arrangement fee in respect of the above loan 8,200 Interest on loan to acquire 10% stake in Foden Ltd, a UK 159,590 trading company Total 321,480 Other Information: Caleb Ltd accrued interest receivable of E342,000 in the accounting period. This relates to the purchase of long-term debentures for investment purposes. . Catery Ltd acquired a commercial premises on 1 July 2019. The company immediately coupled 60% of the building and rented out the remaining 40% at 130,000 per month The purchase was financed by way of an interest bearing loan (see Loan Relationships above). Eier Ltd Incurs allowable costs of 500_2021 Page 3/11 ES,000 per month in relation to the rented section of the premises. Question 1 continues on the next page Question 1 continued II. The company has capital losses brought forward 1 May of 50,000 Iv. Egesby Ltd has two wholly owned subsidiaries. purposes Egerby Ltd has always been a large company for the of Quarterly Instalment Payments. (a) Required: Calculated corporation tax liability for the si month period ended 30 September 2019 (20 marks) Use the following RPI figures in your calculation, where appropriate September 2019 291.6 December 2017 278 June 2019 March 2012 289.6 240.8 (b) For the corporation tax liability calculated in part a), state the due dates for quarterly instalments, and the amounts due on each date. (4 marks) (c) Esterbyltd sold one of the remaining three acres of land in March 2020 for 90,000, incurring costs on sale of 4,000. The value of the remaining two acres at the date of sale, was 120,000 Calculate the net proceeds after costs and corporation tax) generated by this disposal. (6 marks) S600 2021 P4/11 (Total 30 marks) Grielish Ltd is a UK resident trading company, manufacturing sports and fitness equipment. In the eight-month period to 31 December 2019, Grielish Ltd had a trading profit of 2,184,500. This figure has been adjusted (correctly for all items, except for capital allowances and loan relationships During the accounting period, Grielish Ltd made the following capital transactions: May 2019 Purchased some machinery for the factory, costing ES20,000 June 2019 Sold 7 acres of land for 450,000 incurring legal fees of 30,000 in connection with the sale. 10 acres of land was originally acquired for E500,000 in March 2012, with legal fees and stamp duty land tax incurred of 34,000 in total. At the time of disposal, the remaining 3 acres of land was valued at 200,000 Purchased a brand new heating system, costing 400,000 July 2019 Purchased a brand-new car for an employee. The car cost August 52,000, has CO2 emissions of 104g/km, and is used 15% 2019 for business RIERASAS September Sold some machinery for 128,000 and integral features 2019 for $5.000. No item wassal for more than cost Question 1 continues on the next page SR620039 2021 R Page 2/11 Question 1 continued Tax Written Down Values brought forward at 1 May 2019, were as follows: Main Pool Special Rate Pool E316,000 237,400 During the accounting period, the company accrued costs of 321,480 in respects of its loan relationships. None of these costs has yet been deducted in arriving at the company's taxable profit, and therefore require consideration, E Overdraft interest 27,340 Interest on a loan to purchase commercial property (see note ( 126,350 2 below) Arrangement fee in respect of the above loan 8.200 Interest on loan to acquire 10% stake in Foden Ltd, a UK 159,590 trading company Total 321,480 Other Information L Grielish Ltd accrued interest receivable of 342,000 in the accounting period. This relates to the purchase of long-term debentures for investment purposes. Grielish Ltd acquired a commercial premises on 1 July 2019 The company Immediately occupied 60% of the building and rented out the remaining 40% at 30,000 per month. The purchase was financed by way of an interest-bearing loan (see Loan Relationships above). Grielish Ltd incurs allowable costs of SR620039 2021 R Page 3/11 5,000 per month in relation to the rented section of the premises. Question 1 continues on the next page Question 1 continued . The company has capital losses brought forward on 1 May 2019 of 50,000 iv. Grielish Ltd has two wholly owned subsidiaries. v. purposes Grielish Ltd has always been a large company for the of Quarterly Instalment Payments. Required (a) Calculate Grielish Ltd.'s corporation tax liability for the six month period ended 30 September 2019. (20 marks Use the following RPi figures in your calculation, where appropriate September 2019 291.0 December 2017 278.1 June 2019 March 2012 289.6 240.8 (b) For the corporation tax liability calculated in part a), state the due dates for quarterly Instalments, and the amounts due on each date. (4 marks) (c) Grielish Itd sold one of the remaining three acres of land in March 2020 for 90,000, incurring costs on sale of 4,000. The value of the remaining two acres at the date of sale, was 120,000 Calculate the net proceeds (le, after costs and corporation tax) generated by this disposal. (6 marks) 1. 1. Background: Caleb Ltd is a UK resident trading company, manufacturing sports and fitness equipment In the eight-month period to 31 December 2019, Ltd had a trading profit of 2,184,500. This figure has been adjusted correctly) for all items, except for capital allowances and loan relationships. During the accounting period, Caleb Ltd made the following capital transactions: Purchased some machinery for the factory, costing May 2019 ES20,000. Sold 7 acres of land for 450,000 incurring legal fees of 30,000 in connection with the sale. 10 acres of land was originally acquired for ES00,000 in March 2012, with lega June 2019 fees and stamp duty land tax incurred of E34,000 in total. At the time of disposal, the remaining 3 acres of land was valued at $200.000 Purchased a brand new heating system, costing July 2019 400,000 Purchased a brand new car for an employee. The car cost August ES2,000, has CO2 emissions of 104g/km, and is used 15% 2019 for business purposes September Sold some machinery for 128,000 and integral features 2019 for 6.000. Na item was sold for more than cost. Question continues on the next page SA 2021 Par2/13 Question 1 continued Tax Written Down Values brought forward 1 May 2019, were as follows: Main Pool Special Rate Pool 316,000 E237,400 During the accounting period, the company accrued costs of 321,480 in respects of its loan relationships. None of these costs has yet been deducted in arriving at the company's taxable profit, and therefore require consideration. E Overdraft interest 27,340 Interest on a loan to purchase commercial property see note 126,350 2 below) Arrangement fee in respect of the above loan 8,200 Interest on loan to acquire 10% stake in Foden Ltd, a UK 159,590 trading company Total 321,480 Other Information: Caleb Ltd accrued interest receivable of E342,000 in the accounting period. This relates to the purchase of long-term debentures for investment purposes. . Catery Ltd acquired a commercial premises on 1 July 2019. The company immediately coupled 60% of the building and rented out the remaining 40% at 130,000 per month The purchase was financed by way of an interest bearing loan (see Loan Relationships above). Eier Ltd Incurs allowable costs of 500_2021 Page 3/11 ES,000 per month in relation to the rented section of the premises. Question 1 continues on the next page Question 1 continued II. The company has capital losses brought forward 1 May of 50,000 Iv. Egesby Ltd has two wholly owned subsidiaries. purposes Egerby Ltd has always been a large company for the of Quarterly Instalment Payments. (a) Required: Calculated corporation tax liability for the si month period ended 30 September 2019 (20 marks) Use the following RPI figures in your calculation, where appropriate September 2019 291.6 December 2017 278 June 2019 March 2012 289.6 240.8 (b) For the corporation tax liability calculated in part a), state the due dates for quarterly instalments, and the amounts due on each date. (4 marks) (c) Esterbyltd sold one of the remaining three acres of land in March 2020 for 90,000, incurring costs on sale of 4,000. The value of the remaining two acres at the date of sale, was 120,000 Calculate the net proceeds after costs and corporation tax) generated by this disposal. (6 marks) S600 2021 P4/11 (Total 30 marks)