Jordi is a director and shareholder of Traiste Ltd. He has asked for your advice in connection with the forthcoming redundancy of an employee.

Traiste Ltd:
– Is a UK resident unquoted trading company.
– Has two shareholders, Jordi and Kat, who each own 50% of the 1,000 £1 shares in issue.

Traiste Ltd – proposed redundancy package for an employee:
– An employee, Esta, will be made redundant on 30 June 2017.
– Esta will receive statutory redundancy pay of £12,000 and an ex-gratia payment of £36,000 from Traiste Ltd.
– Traiste Ltd will continue to lease a motor car for Esta’s personal use until 31 December 2017, although she has no contractual entitlement to this.
– The monthly lease payments are £420.
– The motor car has CO2 emissions of 178 grams per kilometre and is petrol powered.
– The motor car is currently worth £10,300. Its list price when new was £18,400.

Required:
(a) (i) Explain briefly the income tax implications for Esta in respect of each of the three components of the proposed redundancy package.

(ii) Calculate the corporation tax deductions available to Traiste Ltd in respect of the redundancy package provided to Esta. (4 marks)