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The summary trading profit and loss account together with extracts from the finan

Donation to a political party (i) 2000

Spent sponsoring an art show (i) 3000

Received free tickets to the show (i) 500

Total legal and professional fees (ii) 31455 Spent on advice in respect (ii) 4250

The tax written down value of the general

pool at 1 April 2008 (iii) 3449144

Machinery costing (iii) 13122

Delivered on 1 May 2009 with payment due only on delivery (iii)

Expensive cars TWDV at 1 April 2008

Audi 2576

VW Passat 3800

Disposal of VW Passat 2600 Purchase Mitsubishi Shogun 15900

During the year

Trading and Profit and Loss Account

Sales 23345962

Cost of sales -19174809

Gross Profit 4,171,153

Other income

Rents received 10.345

Overseas dividends received 36000

Bank interest received 65.642

111.987

Administrative expenditure -2685760

Finance costs

Bank charges 13.875

Bank interest 12.254

Hire purchase 76.455-102.584

(Loss)/Profit on disposal of fixed assets

Plan and machinery -54874

Fixtures and fittings 3.142

Motor vehicles 2.147

-49585

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Amounts written off investments

Provision for diminution in value of

investment -29000

Net Profit 1416211

Tangible Fixed Assets

Freehold PropertyPlant &

Machinery

Cost/Valuation: 1stApril 2008 1,046,980 7,885,452

Additions 0 1,925,242

Disposals 0 (1,322,798)

At 31stMarch 2009 1,046,980 8,487,896

Depreciation: 1stApril 2008 238.241 3,043,874

Charge for year 59.330 1,091,857

Eliminated on disposal 0 -749.854

At 31stMarch 2009 297.571 3,385,877

Net Book Value: 31stMarch 2009 749.409 5,102,019

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cial statements ended 31 March 2009

Capital Allowances

TWDV b/f

General pool

Additions qualifying for AIA onlyPlan and Machinery

Fixture and fittings

Motor Vehicles

Less

Expensive car

Machine not delivered until 1st May 2009

AIA

FYA @40%

TWDV c/fDisposal

Plan and Machinery

Fixture and fittings

Motor Vehicles

Depreciation eliminated on disposal

Plan and Machinery

Fixture and fittings

Motor Vehicles

Net Book value

Loss/profit on disposal of fixed assets

Expensive car disposal (VW Passat)

VW Passat

Balancing allowances

Transfer balance to pool

WDA @ 20%

WDA @ 20% (max)

WDA @ 20%

Total Capital Allowances

TWDV c/f

Tax computation

Net profit

Add

Depreciation for year 2008-2009

Loss/profit on disposal of fixed assets

Amounts written off investment

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Donation to Political Party

Free ticket to art show

Professional fees

Less

Bank interest received

Rent receivable

Overseas Dividends

Capital Allowances

Fixtures &

Fittings

Motor

Vehicles

Net trading profit

62.147 1,005,784 Tax at 28%

10.114 158.209

-3.542 -77.045

68.719 1,086,948

36.712 427.895

3.756 258.965

-2.785 -57.303

37.683 629.557

31.036 457.391

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AIA/FYA Main pool Audi VW Passat

2,576 3,800

3,499,144

1,925,242

10,114

158,209

-15,900

-13,122

-50,000

2,014,543

-805,817

1,208,726

-1,322,798

-3,542

-77,045

749,854

2,785

57,303

-593,443

49,585

2,600-541,258

-2,600

1,200

667,468 667,468

4,166,612

-833,322

-515

3,333,289 2,061 0

1,416,211

1,413,908

49,585

29,000

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2,000

500

4,250

1,499,243

65,642

10,345

36,000

1,693,855

-1,805,842

1,109,612

310,691

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Mitsubishi ShoguAllowances Note

15,900

Later than 31st March 2009 (Tax year)

50,000

805,817

1,200

833,322

-3,000 3,000

515

1,693,855

12,900

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Property

Entrepreneurs'relief

Total gain 175,000

Eligible gain (12 years) 161,538

Ineligible gain (1 year) 13,462

Entrepreneurs'relief 71,795

Proceeds

Less cost 50000

Extension 25000

Gain

Less Entrepreneurs' relief

Taxable gain

Water Colour Pictures

Proceeds 7,500

Less cost 2,000

Gain 5,500

Chattels relief(7500-6000)*5/3

Chattels Gain 2,500

Trader Ltd Shares

Market value

Less cost

Net

Less hold over gain

Expected gain 59,850

Less excess consideration

over cost (30000-150) -29850

Gain before ER (Actual gain)

Less ER

Taxable Gains after ER

Venture Capital Trust

VCT1

Proceeds 175,000

Less cost -160,000

Gain 15,000

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Income tax relief (30%) -48,000

VCT2

Proceeds

40/60*40000 26,667

Less cost40/60/*60000 -40,000

Non allowable loss -13,333

Income tax relief (30%) -12,000

Balance

Proceeds 13,333

Less cost (remainder) 20,000

Net allowable Loss -6,667

Capital Gain tax

Trader LTd Shares

Gain on Property

VCT

Chattel

Total

Less VCT loss

Net chargeable gain

Less Annual Exempt

Taxable gain

CGT @ 18%

Due to early selling VCT shares, there will be a claw back of T

Taxes

CGT 18,994

VCT1 48,000

VCT2 12,000

Total tax due 78,994

Net proceeds

Shares in Ltd 30000

Building proceed 250000

Less new property -130000

VCT1 175000

VCT2 40000

Painting 7500

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Total proceeds 372500

Less tax -78,994

Net proceeds 293,506

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13 years

No relief after 06/04/2008

250,000

175,000

71,795

103,205

60,000

-150

59,850

-30,000

29,850

13,267

16,583

Note

Tax exempt- In tax explanation

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In tax explanation

Qualifying & non-qualifying parts;

total investment in 2006 exceeds

200000

16,583

103,205

0

2,500

122,288

-6,667

115,622

-10,100

105,522

18,994

ax relief

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Indexed cost

2,500.00

524.61

240.003,264.61

496.39

3,761.00

Cost (right)

Market value

(1982)

1250

200.00

200.00 1250

-80.00 -500.00

120 750