TXF6 UK

Question 4b

(b) Meung Nong commenced in self-employment on 1 May 2010. She initially prepared accounts to 30 April, but will change her accounting date to 30 June by preparing accounts for the 14-month period to 30 June 2013. Meung’s trading profits (after taking account of capital allowances) for the first two years of trading were as follows:
£
Year ended 30 April 2011 50,400
Year ended 30 April 2012 37,200

Meung’s trading profit for the 14-month period ended 30 June 2013 will be £61,500. This figure is before taking account of capital allowances. The tax written down value of her capital allowances main pool at 1 May 2012 was £10,400, and there will be no additions or disposals during the 14-month period ended 30 June 2013.

Meung’s business will continue for the foreseeable future.

Required:
Calculate the amount of trading profit that will be assessed on Meung Nong for each of the tax years 2010–11, 2011–12, 2012–13 and 2013–14.

Note: You should assume that the capital allowance rates for the tax year 2012–13 apply throughout. (7 marks)

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