D4 M Ltd, a UK resident trading company, owns 6% of the share capital of Z Inc and 8% of the share capital of X S.A. Neither of these companies is resident in the UK for tax purposes. In addition, M Ltd has a controlling interest in two UK resident companies - N Ltd and O Ltd. The following information relates to M Ltd's 12-month accounting period ended 31 March 2010:

£

INCOME Trading income 500,000 Dividend received from Z Inc on 1 April 2009 (after 30% withholding tax) 35,000 Dividend received from X S.A. on 1 May 2009 (after 5% withholding tax) 38,000 CHARGE PAID (gross amount) 10,000 M Ltd also has a substantial amount of unrelieved surplus ACT brought forward from before 6 April 1999.

You are required:
To compute the corporation tax liability of M Ltd for the above period, showing clearly the relief for double taxation. Also calculate the maximum ACT set-off for the period.