Mint Limited

Unit 18 Business Taxation 2006/07

Answer to question 2.4 Mint Limited

Net profit 16 months ended 31st March 2007
4070

Deduct non-trading income
Profit on sale of building
54500
(50430)

Add back disallowed expenditure
Depreciation
45000
Loss on sale of computer
19500
Entertaining customers
1930
66430

Adjusted profit for period before CA's
16000

CAP 1st December 2005 to 30th November 2006
Adjusted profit £16,000 x 12/16 =
12000
Deduct capital allowances
8000
Trading income (schedule D case I)
4000

CAP 1st December 2006 to 31st March 2007
Adjusted profit £16,000 x 4/16 =
4000
Deduct capital allowances
2500
Trading income (schedule D case I)
1500