Sample
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Question 6b ii
Jump Ltd’s summarised statement of profit or loss for the three-month period ended 31 March 2015 is as follows:
| Note | £ | £ | |
|---|---|---|---|
| Revenue | 264,900 | ||
| Operating expenses | |||
| Depreciation | 8,100 | ||
| Employee costs | 1 | 189,700 | |
| Lease of motor car | 2 | 1,200 | |
| Professional fees | 3 | 7,800 | |
| Other expenses | 4 | 202,800 | |
| (409600) | |||
| Operating loss | (144700) | ||
| Bank interest receivable | 0 | ||
| Loss before taxation | (144700) |
Previous results
Jump Ltd’s results for its two previous periods of trading are as follows:
| Year ended 31 May 2014 £ | Period ended 31 December 2014 £ | |
|---|---|---|
| Tax adjusted trading profit | 78,600 | 42,400 |
| Bank interest receivable | 1,200 | 0 |
Rates of corporation tax
Jump Ltd has always paid corporation tax at the small profits rate of 20%, and expect to continue to do so in respect of future profits.
Required:
(b) (ii) Advise Jump Ltd as to the maximum amount of its trading loss which can be relieved against its total profits for the year ended 31 May 2014 and the seven-month period ended 31 December 2014. (2 marks)