Hello.
BPP has the following question:
In the year ended 31 March 2017, Greenwich plc had the following result:
Trading loss: (68,000)
Capital loss: (4000)
Interest income: 5000
Qualifying charitable donation: (3000)
The question is : what is the maximum amount that Greenwich could surrender as the group relief of the year ended 31 March 2017:
a) 68,000
b)70,000
c)71,000
d)75,000
The answer in the BPP-book is 68,000+ 2,000=70,000, however, as the QCD of 3000 does not exceed interest income of 5,000, so QCD is not classified as unrelieved, therefore, i think the answer should be 68,000
Please help me to answer this question.
Thank you!
Ask the Tutor ACCA TX-UK
Group relief
Agreed - only excess QCD may be group relieved - I assume that the question has got the 3,000 and the 5,000 the wrong way around!
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