You are required:

(a) To identify the associated companies for small companies rate purposes and to state the upper and lower thresholds for each of the companies shown.

(b) To identify any groups and consortia in the above structure qualifying for group relief.

(c) To compute the corporation tax liability of each company, assuming that loss relief has been claimed in the most efficient manner.

(d) To advise the directors of A Ltd on the weakness, from a tax point of view, of the existing structure. (CIMA)

*D8 You are the chief accountant of Z Ltd, a UK resident company, whose activities to date have been confined wholly to the UK. The company is about to acquire three UK resident subsidiaries and the members of the newly-formed group will engage, for the first time, in import and export activities (all with non-EU countries).

You are required:

To draft a brief report to the board on the VAT implications of the above changes.