(iii) The effect of the restructuring on the group’s ability to recover directly and non－d

(iii) The effect of the restructuring on the group’s ability to recover directly and non-directly attributable input

tax. (6 marks)

You are required to prepare calculations in respect of part (ii) only of this part of this question.

Note: – You should assume that the corporation tax rates and allowances for the financial year 2006 apply

throughout this question.

(iii) The effect of the restructuring on the group’s ability to recover its input taxPrior to the restructuringRapier Ltd and Switch Ltd make wholly standard rated supplies and are in a position to recover all of their input taxother than that which is sp