问答题
Sakura requires advice on the receipt of insurance proceeds, the sale of a painting in exchange for a boat and the
implications of making an error when preparing his tax return.
The following information has been obtained from a telephone conversation with Sakura.
Sakura:
- Is a higher rate taxpayer who is resident, ordinarily resident and domiciled in the UK.
- Is finalising his tax return for the tax year 2011/12.
- Has not previously made any gifts or disposals for the purposes of capital gains tax or inheritance tax other
than those set out below.
- Does not expect to make any gifts or disposals for the purposes of capital gains tax or inheritance tax in the
tax years 2012/13 or 2013/14 other than those set out below.
- Has received insurance proceeds of ￡67,000.
- Intends to sell a painting to his son, Cashel, in exchange for a boat.
The insurance proceeds of ￡67,000:
- The insurance proceeds were paid to Sakura on 1 June 2012.
- The insurance proceeds relate to the destruction of an antique china figurine on 1 March 2012.
- Sakura paid ￡28,000 for the figurine on 1 April 2008.
- The figurine had a market value of ￡80,000 on 1 March 2012.
- Sakura intends to use the money to purchase a modern glass figurine for ￡59,000.
Exchange of painting for boat:
- Sakura intends to sell a painting with a market value of ￡48,000 to his son, Cashel.
- The consideration for the sale will be a boat owned by Cashel that has a market value of ￡25,000.
- The painting and the boat cost ￡22,000 and ￡37,000 respectively.
Sakura's tax return:
- Sakura always prepares his tax returns in an honest manner.
- However, he is aware that he could still make an honest mistake.
Required
(a) - Explain, with supporting calculations where necessary, the capital gains tax and inheritance tax
implications for Sakura of the receipt of the insurance proceeds and the sale of the painting in
exchange for the boat.
- Advise Sakura of the actions he should take in relation to his plans in order to minimise his capital
gains tax liability and point out any matter(s) that would need to be resolved with HM Revenue and
Customs.
Note: you should clearly identify the tax years relevant to the disposals and the due date of payment of any
minimised capital gains tax liability.
(b) State, with reasons, whether there will be any capital gains tax and/or inheritance tax implications for Cashel
from the disposal of the boat.
(c) Explain the manner in which a penalty would be calculated if Sakura were to make an honest mistake when
completing his tax return.
You should assume that the tax rates and allowances of the tax year 2011/12 will continue to apply for the
foreseeable future.
implications of making an error when preparing his tax return.
The following information has been obtained from a telephone conversation with Sakura.
Sakura:
- Is a higher rate taxpayer who is resident, ordinarily resident and domiciled in the UK.
- Is finalising his tax return for the tax year 2011/12.
- Has not previously made any gifts or disposals for the purposes of capital gains tax or inheritance tax other
than those set out below.
- Does not expect to make any gifts or disposals for the purposes of capital gains tax or inheritance tax in the
tax years 2012/13 or 2013/14 other than those set out below.
- Has received insurance proceeds of ￡67,000.
- Intends to sell a painting to his son, Cashel, in exchange for a boat.
The insurance proceeds of ￡67,000:
- The insurance proceeds were paid to Sakura on 1 June 2012.
- The insurance proceeds relate to the destruction of an antique china figurine on 1 March 2012.
- Sakura paid ￡28,000 for the figurine on 1 April 2008.
- The figurine had a market value of ￡80,000 on 1 March 2012.
- Sakura intends to use the money to purchase a modern glass figurine for ￡59,000.
Exchange of painting for boat:
- Sakura intends to sell a painting with a market value of ￡48,000 to his son, Cashel.
- The consideration for the sale will be a boat owned by Cashel that has a market value of ￡25,000.
- The painting and the boat cost ￡22,000 and ￡37,000 respectively.
Sakura's tax return:
- Sakura always prepares his tax returns in an honest manner.
- However, he is aware that he could still make an honest mistake.
Required
(a) - Explain, with supporting calculations where necessary, the capital gains tax and inheritance tax
implications for Sakura of the receipt of the insurance proceeds and the sale of the painting in
exchange for the boat.
- Advise Sakura of the actions he should take in relation to his plans in order to minimise his capital
gains tax liability and point out any matter(s) that would need to be resolved with HM Revenue and
Customs.
Note: you should clearly identify the tax years relevant to the disposals and the due date of payment of any
minimised capital gains tax liability.
(b) State, with reasons, whether there will be any capital gains tax and/or inheritance tax implications for Cashel
from the disposal of the boat.
(c) Explain the manner in which a penalty would be calculated if Sakura were to make an honest mistake when
completing his tax return.
You should assume that the tax rates and allowances of the tax year 2011/12 will continue to apply for the
foreseeable future.
【正确答案】Text references. Capital gains tax and compensation is dealt with in Chapter 14. Inheritance tax transfers are
covered in Chapter 16. Penalties for errors in tax returns are covered in Chapter 15.
Top tips. Make sure that read the whole of the question - there was a very useful note at the end of part (a) which
stated that you needed to indentify the tax years of the disposals and the due date of payment of any minimised
capital gains tax liability.
Easy marks. The treatment of compensation proceeds in part (a) was also covered in F6 and so should have yielded
easy marks for P6.
Examiner's comments. Part (a) required candidates to consider both the capital gains tax and inheritance tax
implications of the destruction of an asset and the exchange of one asset for another. This required some clear
thinking as to who was disposing of what together with the ability not to confuse the two capital taxes. This part of
the question was answered reasonably well by many candidates. However, some candidates would have benefited
from addressing each of the taxes separately under clear headings as this would have helped them to organise their
thoughts and prevent confusion.
The calculations of the capital gains were done well as were the implications of the potentially exempt transfer.
However, the deferral of the gain on the asset destroyed was usually dealt with, incorrectly, by reference to
business asset roiiover relief.
The reliefs available in respect of capital gains involve a fairly tricky bunch of rules and definitions. Candidates
would be well advised to learn the conditions that must be satisfied in order for each of the reliefs to be available.
Part (b) was very small but still required thought; it involved the disposal of a boat. For one of the two available
marks candidates simply had to state that a boat is an exempt asset for the purposes of capital gains tax. However,
the vast majority did not pause for thought and instead talked about the capital loss that would occur on disposal.
The final part of the question tested candidates' knowledge of the penalties that may be charged in respect of an
error in a tax return. This is a current issue as the rules have changed quite recently but a minority of candidates
were not aware of the rules. Candidates should ensure that they keep up to date with the changes to the tax system
and that they read the Finance Act articles published in Student Accountant.
covered in Chapter 16. Penalties for errors in tax returns are covered in Chapter 15.
Top tips. Make sure that read the whole of the question - there was a very useful note at the end of part (a) which
stated that you needed to indentify the tax years of the disposals and the due date of payment of any minimised
capital gains tax liability.
Easy marks. The treatment of compensation proceeds in part (a) was also covered in F6 and so should have yielded
easy marks for P6.
Examiner's comments. Part (a) required candidates to consider both the capital gains tax and inheritance tax
implications of the destruction of an asset and the exchange of one asset for another. This required some clear
thinking as to who was disposing of what together with the ability not to confuse the two capital taxes. This part of
the question was answered reasonably well by many candidates. However, some candidates would have benefited
from addressing each of the taxes separately under clear headings as this would have helped them to organise their
thoughts and prevent confusion.
The calculations of the capital gains were done well as were the implications of the potentially exempt transfer.
However, the deferral of the gain on the asset destroyed was usually dealt with, incorrectly, by reference to
business asset roiiover relief.
The reliefs available in respect of capital gains involve a fairly tricky bunch of rules and definitions. Candidates
would be well advised to learn the conditions that must be satisfied in order for each of the reliefs to be available.
Part (b) was very small but still required thought; it involved the disposal of a boat. For one of the two available
marks candidates simply had to state that a boat is an exempt asset for the purposes of capital gains tax. However,
the vast majority did not pause for thought and instead talked about the capital loss that would occur on disposal.
The final part of the question tested candidates' knowledge of the penalties that may be charged in respect of an
error in a tax return. This is a current issue as the rules have changed quite recently but a minority of candidates
were not aware of the rules. Candidates should ensure that they keep up to date with the changes to the tax system
and that they read the Finance Act articles published in Student Accountant.
【答案解析】