问答题
Capstan requires advice on the transfer of a property to a trust, the sale of shares in respect of which relief has been
received under the Enterprise Investment Scheme (EIS), and the sale of shares and qualifying corporate bonds
following a takeover.
The following information was obtained from a meeting with Capstan.
Capstan:
- Expects to have taxable income in the tax year 2012/13 of ￡80,000.
- Transferred a UK property to a discretionary trust on 1 May 2012.
- Plans to sell ordinary shares in Agraffe Ltd and loan stock and ordinary shares in Pinblock plc.
- Will make all available claims to reduce the tax due in respect of his planned disposals.
- Entrepreneurs' relief is not available in respect of any of these disposals.
Transfer of a UK property to a discretionary trust:
- Capstan acquired the property in May 2004 for ￡285,000.
- The market value of the property on 1 May 2012 was ￡425,000.
- Capstan had used the property as a second home throughout his period of ownership.
- Capstan will pay any inheritance tax due on the gift of the property to the trust.
Sale of ordinary shares in Agraffe Ltd:
- Capstan subscribed for 18,000 shares in Agraffe Ltd for ￡32,000 on 1 February 2010.
- He obtained EIS relief of ￡6,400 against his income tax liability.
- Capstan intends to sell all of the shares for ￡20,000 on 1 July 2012.
- Capstan will relieve the loss arising on the shares in the most tax efficient manner.
Sale of loan stock and ordinary shares in Pinblock plc:
- Capstan will sell ￡8,000 7% Pinblock plc non-convertible loan stock for ￡10,600.
- Capstan will also sell 12,000 shares in Pinblock plc for ￡69,000.
- The sales will take place on 1 August 2012.
Capstan's acquisition of loan stock and ordinary shares in Pinblock plc:
- Capstan purchased 15,000 shares in Wippen plc for ￡26,000 on 1 May 2005.
- Pinblock plc acquired 100% of the ordinary share capital of Wippen plc on 1 October 2008.
- The takeover was for bona fide commercial reasons and was not for the avoidance of tax.
- Capstan received ￡8,000 Pinblock plc non-convertible loan stock (a qualifying corporate bond) and 20,000
ordinary shares in Pinblock plc in exchange for his shares in Wippen plc.
- The loan stock and the shares were worth ￡9,000 and ￡40,000 respectively as at 1 October 2008.
Required:
(a) Set out, together with supporting calculations, the inheritance tax and capital gains tax implications of the
transfer of the UK property to the trust and the date(s) on which any tax due will be payable.
(b) Explain, with supporting calculations, in connection with the sale of shares in Agraffe Ltd
- the tax implications of selling them on 1 July 2012; and
- any advantages and disadvantages to Capstan of delaying the sale.
(c) Calculate Capstan's taxable capital gains for the tax year 2012/13.
Note: in parts (a) and (b) you should clearly state any assumptions you have made together with any
additional information that you would need to confirm with Capstan before finalising your calculations.
You should assume that the tax rates and allowances of the tax year 2011/12 will continue to apply for the
foreseeable future.
received under the Enterprise Investment Scheme (EIS), and the sale of shares and qualifying corporate bonds
following a takeover.
The following information was obtained from a meeting with Capstan.
Capstan:
- Expects to have taxable income in the tax year 2012/13 of ￡80,000.
- Transferred a UK property to a discretionary trust on 1 May 2012.
- Plans to sell ordinary shares in Agraffe Ltd and loan stock and ordinary shares in Pinblock plc.
- Will make all available claims to reduce the tax due in respect of his planned disposals.
- Entrepreneurs' relief is not available in respect of any of these disposals.
Transfer of a UK property to a discretionary trust:
- Capstan acquired the property in May 2004 for ￡285,000.
- The market value of the property on 1 May 2012 was ￡425,000.
- Capstan had used the property as a second home throughout his period of ownership.
- Capstan will pay any inheritance tax due on the gift of the property to the trust.
Sale of ordinary shares in Agraffe Ltd:
- Capstan subscribed for 18,000 shares in Agraffe Ltd for ￡32,000 on 1 February 2010.
- He obtained EIS relief of ￡6,400 against his income tax liability.
- Capstan intends to sell all of the shares for ￡20,000 on 1 July 2012.
- Capstan will relieve the loss arising on the shares in the most tax efficient manner.
Sale of loan stock and ordinary shares in Pinblock plc:
- Capstan will sell ￡8,000 7% Pinblock plc non-convertible loan stock for ￡10,600.
- Capstan will also sell 12,000 shares in Pinblock plc for ￡69,000.
- The sales will take place on 1 August 2012.
Capstan's acquisition of loan stock and ordinary shares in Pinblock plc:
- Capstan purchased 15,000 shares in Wippen plc for ￡26,000 on 1 May 2005.
- Pinblock plc acquired 100% of the ordinary share capital of Wippen plc on 1 October 2008.
- The takeover was for bona fide commercial reasons and was not for the avoidance of tax.
- Capstan received ￡8,000 Pinblock plc non-convertible loan stock (a qualifying corporate bond) and 20,000
ordinary shares in Pinblock plc in exchange for his shares in Wippen plc.
- The loan stock and the shares were worth ￡9,000 and ￡40,000 respectively as at 1 October 2008.
Required:
(a) Set out, together with supporting calculations, the inheritance tax and capital gains tax implications of the
transfer of the UK property to the trust and the date(s) on which any tax due will be payable.
(b) Explain, with supporting calculations, in connection with the sale of shares in Agraffe Ltd
- the tax implications of selling them on 1 July 2012; and
- any advantages and disadvantages to Capstan of delaying the sale.
(c) Calculate Capstan's taxable capital gains for the tax year 2012/13.
Note: in parts (a) and (b) you should clearly state any assumptions you have made together with any
additional information that you would need to confirm with Capstan before finalising your calculations.
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. Lifetime transfers for IHT are covered in Chapter 16. The enterprise investment scheme is dealt
with in Chapter 2. The CGT aspects of shares and securities are covered in Chapter 12.
Top tips. The P6 exam is not just about technical tax knowledge. When thinking about advantages and
disadvantages which might arise on delaying the sale of the shares in Agraffe Ltd, don't forget about practical and
commercial aspects that might be important to the client.
Easy marks. The inheritance tax calculation was very straightforward. The sale of the loan stock after a takeover
should also have given easy marks.
Examiner's comments. Part (a) required candidates to consider both the capital gains tax and inheritance tax
implications of the transfer of a property to a discretionary trust. The inheritance tax implications were addressed
very well by all but a tiny minority of candidates. The only common error was a failure to set out any assumptions
made as required by the note to the question.
The capital gains tax element of this part was not answered well. The problem here was that most candidates did
not think; instead they simply deducted the cost from the proceeds and addressed rates of tax. Some candidates
then realised that gift relief was available and that, per the question, all available claims would be made. As a result,
although they had wasted some time, they were still able to score full marks. Other candidates, however, did not
address the gift relief point and consequently did not score any marks for the capital gains tax element of the
question.
Part (b) concerned the sale of shares in respect of which EIS relief had been claimed. Almost all candidates
identified the claw back of the relief if the shares were sold within three years of the acquisition. However, many
stated that the whole of the relief obtained would be withdrawn as opposed to a proportion of it.
The implications of delaying the sale were not identified particularly well. Many candidates simply stated the
opposite of what they had already written, ie that the relief obtained would not be withdrawn if the shares were held
for three years. More thoughtful candidates considered other matters and recognised that delaying the sale delayed
the receipt of the sales proceeds and that the value of the shares might change (for the better or the worse').
The final part of the question concerned the sale of shares and qualifying corporate bonds that had been acquired
following a paper for paper exchange. This part was done well by those candidates who knew how to handle this
type of transaction.
The first task was to recognise that the cost of the original shares needed to be apportioned between the new
shares and the corporate bonds. Many candidates knew what they were doing here and were on the way to doing
well in this part of the question.
However, there was often confusion as to the treatment of the sale of the corporate bonds. Many candidates who
knew that corporate bonds are exempt from capital gains tax went on to calculate a gain on the sale and include it in
the taxable capital gains for the year. Also, many candidates were not able to identify the gain on the original shares
that was frozen at the time of the paper for paper exchange and then charged when the corporate bonds were sold.
with in Chapter 2. The CGT aspects of shares and securities are covered in Chapter 12.
Top tips. The P6 exam is not just about technical tax knowledge. When thinking about advantages and
disadvantages which might arise on delaying the sale of the shares in Agraffe Ltd, don't forget about practical and
commercial aspects that might be important to the client.
Easy marks. The inheritance tax calculation was very straightforward. The sale of the loan stock after a takeover
should also have given easy marks.
Examiner's comments. Part (a) required candidates to consider both the capital gains tax and inheritance tax
implications of the transfer of a property to a discretionary trust. The inheritance tax implications were addressed
very well by all but a tiny minority of candidates. The only common error was a failure to set out any assumptions
made as required by the note to the question.
The capital gains tax element of this part was not answered well. The problem here was that most candidates did
not think; instead they simply deducted the cost from the proceeds and addressed rates of tax. Some candidates
then realised that gift relief was available and that, per the question, all available claims would be made. As a result,
although they had wasted some time, they were still able to score full marks. Other candidates, however, did not
address the gift relief point and consequently did not score any marks for the capital gains tax element of the
question.
Part (b) concerned the sale of shares in respect of which EIS relief had been claimed. Almost all candidates
identified the claw back of the relief if the shares were sold within three years of the acquisition. However, many
stated that the whole of the relief obtained would be withdrawn as opposed to a proportion of it.
The implications of delaying the sale were not identified particularly well. Many candidates simply stated the
opposite of what they had already written, ie that the relief obtained would not be withdrawn if the shares were held
for three years. More thoughtful candidates considered other matters and recognised that delaying the sale delayed
the receipt of the sales proceeds and that the value of the shares might change (for the better or the worse').
The final part of the question concerned the sale of shares and qualifying corporate bonds that had been acquired
following a paper for paper exchange. This part was done well by those candidates who knew how to handle this
type of transaction.
The first task was to recognise that the cost of the original shares needed to be apportioned between the new
shares and the corporate bonds. Many candidates knew what they were doing here and were on the way to doing
well in this part of the question.
However, there was often confusion as to the treatment of the sale of the corporate bonds. Many candidates who
knew that corporate bonds are exempt from capital gains tax went on to calculate a gain on the sale and include it in
the taxable capital gains for the year. Also, many candidates were not able to identify the gain on the original shares
that was frozen at the time of the paper for paper exchange and then charged when the corporate bonds were sold.
【答案解析】