Section B - Case 2: Aero-Dynamics Ltd
'Aero-Dynamics Ltd' is a UK resident company manufacturing commercial drones. It owns 100% of 'Hover-Tech Ltd' (UK resident) and 80% of 'Sky-Net Inc' (resident overseas). All companies prepare accounts to 31 March. For the year ended 31 March 2024, Aero-Dynamics Ltd has a trading loss of £400,000. Hover-Tech Ltd has taxable total profits (TTP) of £150,000. Sky-Net Inc has equivalent profits of £200,000.
Which companies form a Group Relief group for trading losses with Aero-Dynamics Ltd?
ACCA · Question 24 · Corporation tax liabilities
Section B - Case 2: Aero-Dynamics Ltd
'Aero-Dynamics Ltd' is a UK resident company manufacturing commercial drones. It owns 100% of 'Hover-Tech Ltd' (UK resident) and 80% of 'Sky-Net Inc' (resident overseas). All companies prepare accounts to 31 March. For the year ended 31 March 2024, Aero-Dynamics Ltd has a trading loss of £400,000. Hover-Tech Ltd has taxable total profits (TTP) of £150,000. Sky-Net Inc has equivalent profits of £200,000.
For the purpose of determining if Hover-Tech Ltd is a 'large' company and must pay its corporation tax in quarterly instalments, what is its profit threshold for the year ended 31 March 2024?
Answer options:
£1,500,000
£750,000
£500,000
£375,000
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