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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:
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.
From the figures you quote I agree with you – any amount of the trading loss (68,000) is available for group relief plus any EXCESS QCD but as you rightly say there are no excess QCD. If the amounts of interest income and QCD were the other way around then the answer would be correct