问答题

问答题

问答题

问答题

问答题4.King,awealthyclientofyourfirmwithasignificantpropertyportfolio,requiresadviceonthesaleofsomeunquotedsharesandonthecapitalgainstaxandinheritancetaximplicationsoftransferringassetstoatrustandtohistwochildren.King:–IsresidentanddomiciledintheUK.–Isanadditionalratetaxpayer.–Hasusedhiscapitalgainstaxannualexemptamountforthetaxyear2015/16.–Hasmadeonepreviouslifetimegiftof￡25,000tohisdaughter,Florentyna,on1June2014.–ItshouldbeassumedthatKingwilldieon1May2017.King’sfamily:–King’sdaughter,Florentyna,is34yearsoldandhastwoyoungchildren.–Florentynawillhaveincomefrompart-timeemploymentof￡10,000inthetaxyear2015/16.Thisisheronlysourceoftaxableincome.–King’sson,Axel,is40yearsoldandhasan18-year-olddaughter,whoisauniversitystudent.King’splans:–On1September2015,KingwillsellsomeofhissharesinWyeLtd.–On1October2015,KingwillputacottageheownsinNewtownandtheafter-taxcashproceedsfromthesaleofthesharesinWyeLtdintoaninterestinpossessiontrustforFlorentynaandherchildren.–On1March2016,KingwillgifthisshareofaflatinUnicitytoAxel.SaleofsharesinWyeLtd:–WyeLtdisanunquotedinvestmentcompany.–Kingacquired5,000sharesinWyeLtdon1June2002atacostof￡5each.–Theseshareswillbeworth￡45eachon1September2015.–Kingwillsellsufficientsharestogenerateafter-taxproceedsof￡30,000.CottageinNewtown:–ThispropertyiswhollyownedbyKing.–Itisexpectedtohaveavalueof￡315,000on1October2015.Creationoftheinterestinpossessiontrust:–Kingwillpayanyinheritancetaxarisingasaresultofthegiftsmadetothetrust.–Florentynawillbethelifetenantandhertwoyoungchildrenwillbetheremaindermenofthetrust.–FlorentynawillliveinthecottageinNewtownandthetrusteeswillinvestthecashinquotedshareswhichwillgenerateannualdividendsof￡3,000.FlatinUnicity:–TheflatinUnicityisjointlyownedbyKingandhiswife,Joy,intheproportions:King75%andJoy25%.–KingandJoyhaverecentlysignedacontractwithAxel’sdaughtertorenttheflattoherforthreeyearsstartingon1September2015.–Therentalagreementisonacommercialbasis.–Kinghasobtainedthefollowingexpectedvaluationsfortheflatasat1March2016Required:

问答题

问答题

问答题