Test your understanding
(1). For the year ended 31 March 2015, Summer Ltd has three associated companies. What are the lower and upper limits that will be used when calculating Summer Ltd’s corporation tax liability for the year ended 31 March 2015?
A £300,000 and £1,500,000
B £100,000 and £500,000
C £60,000 and £300,000
D £75,000 and £375,000
(2). Axe Ltd owns 90% of the ordinary share capital of Bat Ltd. Bat Ltd in turn owns 70% of the ordinary share capital of Club Ltd. Club owns 100% of the ordinary share capital of Dense Ltd and 80% of the ordinary share capital of Edgy Ltd. Which companies form a chargeable gains group with Axe Ltd?
A Bat Ltd and Club Ltd
B Bat Ltd, Club Ltd and Dense Ltd
C Bat Ltd, Club Ltd, Dense Ltd and Edgy Ltd
D Bat Ltd only
(3). Green Ltd owns 100% of the ordinary share capital of Blue Ltd. For the year ended 31 March 2015 Green Ltd had taxable total profits of £132,000. For the nine-month period ended 31 December 2014 Blue Ltd had a trading loss of £84,000. How much of Blue Ltd’s trading loss can Green Ltd claim against its taxable total profits for the year ended 31 March 2015?
(4). Which of the following cannot be group relieved?
A Unrelieved qualifying charitable donations
B Trading losses
C Unrelieved property business losses
D Capital losses
(5). Cat Ltd owns 100% of the ordinary share capital of Mouse Ltd. Both companies make up their accounts to 31 December. On 10 June 2014 Mouse Ltd sold an office building, and this resulted in a chargeable gain. On 20 November 2014 Cat Ltd sold a factory and this resulted in a capital loss. By what date must Cat Ltd and Mouse Ltd make an election if they want their respective capital loss and chargeable gain to be matched?
A 31 December 2016
B 10 June 2016
C 20 November 2016
D 31 December 2015