1. The following is extracted from the accounts of Leaded Lights Ltd for the year ended 30 November 2020.

Profit before tax (note 1)	3,750,900
Building expenses (note 2)	57,500
Depreciation	267,000
Entertaining (note 3)	16,475
Motor expenses (note 4)	64,500
Miscellaneous (note 5)	97,650
Dividends payable	750,000

Notes;

• Includes profits of 240,000 remitted from an overseas branch which has had tax of 60,000 deducted. The finance director considers that DTR could be claimed.
• Includes 18,500 for new thermal insulation in the head office
• Includes the cost of a staff Christmas party for 1,500 for five senior employees, the remainder relates to client entertaining.
• Motor expenses includes 12,500 relating to a directors car which has 60% private use.
• Includes a 2,500 charitable donation to sponsor the annual fete for a local hospice.
• Leaded Lights Ltd is in a 75% loss group with Sash Ltd who have made a trading loss of 57,500 for the same accounting period which can be surrendered.

The tax written down value in the general pool brought forward at 1 December 2019 was 2,065,000 and in the special rate pool was 71,400. During the year additions (not cars) to the general pool were 127,800 and to the special rate pool were 7,600.

Required:

1. Calculate the capital allowances for the year ended 30 November 2020

(5 marks)

2. Prepare a corporation tax computation for the year ended 30 November 2020 showing the total corporation tax due

(5 marks)

3. Explain how a controlled foreign company may be used to reduce UK Corporation Tax payable.

(2 marks