R Ltd is a small company engaged in the manufacture and distribution of plumbing equipment. Following a period of poor trading results, its annual chargeable profit in recent years has been approximately £180,000. Early in 2009 the directors estimated that the chargeable profit for the year to 31 March 2010 would be £220,000.

In March 2009, the directors were considering the possibility of R Ltd acquiring a controlling interest in two other small companies in the same trade - S Ltd and T Ltd.

The chargeable profit of each of these companies for the year to 31 March 2010 was estimated at £20,000.

You are required:

To advise the directors of the differing aggregate corporation tax liabilities which will arise for the year to 31 March 2010 if:

(i) the above plan is adopted

(ii) R Ltd acquires the businesses of S Ltd and T Ltd - taking over their assets, trades and workforces, but not acquiring a shareholding. S Ltd and T Ltd would then be wound up.