Section B (2 Mark)

Section B (2 Mark)

In the year to 31 March 2012, A Ltd (which is UK resident) made a UK trading profit of £100,000. The company’s only other income consisted of rents received of £52,500 (net) from an investment property in Germany. These rents were received net of withholding tax of 25%. A Ltd has no associated companies.

The credit for double tax relief that will be given in the corporation tax computation for the year will be:
A . £13,125
B . £17,500
C . £14,000
D . £nil

View Answer

Answer: C