SCENARIO: Titanium Forge Ltd (TFL) is a heavy manufacturing company producing industrial valves. For the year ended 31 March 2024, TFL had augmented profits of £2.2 million. TFL owns 100% of the ordinary share capital of IronWorks Ltd, a UK resident company. During the year, TFL imported £500,000 of specialized machinery from Germany and purchased £1.2 million of new heavy plant machinery in the UK.
QUESTION: How should TFL account for the VAT on the £500,000 machinery imported from Germany?
ACCA · Question 18 · Corporation tax liabilities
SCENARIO: Titanium Forge Ltd (TFL) is a heavy manufacturing company producing industrial valves. For the year ended 31 March 2024, TFL had augmented profits of £2.2 million. TFL owns 100% of the ordinary share capital of IronWorks Ltd, a UK resident company. During the year, TFL imported £500,000 of specialized machinery from Germany and purchased £1.2 million of new heavy plant machinery in the UK.
QUESTION: Which of the following losses can IronWorks Ltd surrender to TFL as group relief?
Answer options:
Current year trading losses
Capital losses
Carried forward trading losses from before joining the group
Dividends paid
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