I understand that there have been a number of changes to the chapters on taxation. In the past exam papers, April 2010 and April 2013 have questions on tax calculation, but the approach used to apply the minimum profit test (previously NCI profit) in the examiner reports seems fundamentally different. In April 2010 2(ii), the NCI profit test is applied by comparing BLAGAB NCI profit with total taxable income (calculated as I-E + GRB profit). In April 2013 2 (ii), the minimum profit test is applied by comparing BLAGB trade profits with I-E (without considering profit/loss from other long-term business). Is this because the legislation now requires to apply the minimum profit test to BLAGAB without considering profits from non-BLAGAB business or am I missing anything?
For SA2 purposes, the minimum profit test is used to compare the I-E with the traded profit from BLAGAB business only.
