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Question 6b iii
Jump Ltd’s summarised statement of profit or loss for the three-month period ended 31 March 2015 is as follows: The revised trading loss computed for the three-month period ended 31 March 2015 is : (£126,000)
Group companies
Jump Ltd owns 80% of the ordinary share capital of Hop Ltd and 60% of the ordinary share capital of Skip Ltd.
Hop Ltd commenced trading on 1 August 2014, and for the eight-month period ended 31 March 2015 has taxable total profits of £63,000.
Skip Ltd has been trading for several years and has taxable total profits of £56,000 for the year ended 31 March 2015.
Rates of corporation tax
Jump Ltd, Hop Ltd and Skip Ltd have always paid corporation tax at the small profits rate of 20%, and expect to continue to do so in respect of future profits.
Required:
(iii) Advise Jump Ltd as to the maximum amount of its trading loss which can be surrendered as group relief. (2 marks)