(b) Explain by reference to Hira Ltd’s loss position why it may be beneficial for it not to claim any capital
allowances for the year ending 31 March 2007. Support your explanation with relevant calculations.
(6 marks)
正确答案：
(b)TheadvantageofHiraLtdnotclaiminganycapitalallowances
Intheyearending31March2007HiraLtdexpectstomakeataxadjustedtradinglossbeforedeductionofcapital
allowancesof￡55000andtosurrenderthemaximumamountpossibleoftradinglossestoBelgroveLtdandDovedaleLtd
Forthefirstninemonthsoftheyearfrom1April2006to31December2006HiraLtdisinalossreliefgroupwithBelgrove
LtdThemaximumsurrendertoBelgroveLtdforthisperiodisthelowerof:
–theavailablelossof￡41250(￡55000×9\/12);and
–theprofitschargeabletocorporationtaxofBelgroveof￡28500(￡38000×9\/12)
ie￡28500Thisleaveslossesof￡12750(￡41250–￡28500)unrelieved
Fortheremainingthreemonthsfrom1January2007to31March2007HiraLtdisaconsortiumcompanybecauseatleast
75%ofitssharecapitalisownedbycompanieseachofwhichownatleast5%Itcansurrender￡8938(￡55000×3\/12
x65%)toDovedaleLtdand￡4812(￡55000×3\/12×35%)toBelgroveLtdasbothcompanieshavesufficienttaxable
profitstooffsetthelossesAccordinglytherearenolossesremainingfromthethree-monthperiod
TheunrelievedlossesfromthefirstninemonthsmustbecarriedforwardasHiraLtdhasnoincomeorgainsinthatyearor
thepreviousyearHoweverthelossescannotbecarriedforwardbeyond1January2007(thedateofthechangeof
ownershipofHiraLtd)ifthereisamajorchangeinthenatureorconductofthetradeofHiraLtdEvenifthelossescanbe
carriedforwardtheearliestyearinwhichtheycanberelievedistheyearending31March2009asHiraLtdisexpectedto
makeatradinglossintheyearending31March2008
AnycapitalallowancesclaimedbyHiraLtdintheyearending31March2007wouldincreasethetaxadjustedtradingloss
forthatyearandconsequentlytheunrelievedlossesarisinginthefirstninemonths
Ifthecapitalallowancesarenotclaimedthewholeofthetaxwrittendownvaluebroughtforwardof￡96000wouldbe
carriedforwardtotheyearending31March2008thusincreasingthecapitalallowancesandthetaxadjustedtradingloss
forthatyearBynotclaiminganycapitalallowancesHiraLtdcaneffectivelytransferacurrentperiodtradinglosswhich
wouldbecreatedbycapitalallowancesof￡24000(25%x￡96000)fromtheyearending31March2007tothefollowing
yearwhereitcanbesurrenderedtothetwoconsortiummembers
