[ciabar90]

Your 12,000 is AEA.
65,000 – 12,000 (not mentioned that Kato already used his AEA) – 16,350 (37,500 – 21,150)

I think legal fees should not have been deducted in CGT computation (they are not related with disposal or with asset directly). They are incurred for tax avoidance purposes, therefore tax savings are just lower.

[ciabar90]

It depends on whether the company is or is not VAT registred.
If so and VAT is recoverable in input VAT then VAT exclusive net cost is taken to capital allowance computation.
VAT is not recoverable for motor cars, so VAT inclusive cost is presented in capital allowance.

[ciabar90]

I assume the reason is that in Chapter 14 example 1 Susan sells the whole or significant part of business, not the asset used in trade but asset used for business

[ciabar90]

Unless I’m mistaken the question was about the corporation tax calculation for the second company incorporated in Sep’20 – 31 Mar’21?

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