Section B (2 Mark)
In the year to 31 March 2012, a UK resident company made a UK trading profit of £800,000 and received net overseas income of £26,000 (net of 20% withholding tax). These were the company's only sources of income.
The company also paid a qualifying charitable donation of £5,000.
For double tax relief purposes, the charitable donation will be allocated as a deduction from the company's overseas income. True or False?

Section A (1 Mark)
Cash Flow is a tool that is more useful for

Section B (2 Mark)
Calculate Gross Annual Value where Gross Municipal Value is Rs.120, Fair Rent is Rs.105. Actual rent receivable is Rs.100& Standard Rent is Rs.125

Section B (2 Mark)
An asset may be purchased for Rs 10,00,000. It is expected to generate Rs 10,000 annual income for 10 years after which it is expected to sell for Rs. 1,20,000. What is the rate of return expected from this investment?

Section C (4 Mark)
In the year to 31 March 2012, a UK resident company receives overseas income of £9,000 (net) from which
10% tax has been deducted at source. The company's only other income is a UK trading profit of £80,000.
There are no associated companies. What is the UK corporation tax liability for the year?