案例分析题Liber has requested advice on the timing of the sale of the shares which he acquired in a recent company takeover. His sister, Vesta, requires advice on the tax consequences of making a lifetime gift, rather than leaving an asset in her estate upon her death. Liber: Is UK resident and domiciled. Has taxable income of 30,000 each year. Liber acquisition of ordinary shares in Mercury plc: Liber purchased 800 ordinary shares (a 40% holding) in Vulcan Ltd for 14,000 on 1 July 2008. Mercury plc acquired 100% of the ordinary share capital of Vulcan Ltd on 1 June 2018. In exchange for each ordinary share in Vulcan Ltd Liber received the following: Four ordinary shares in Mercury plc valued at 20 per share immediately after the takeover; and 15 cash Mercury plc has 200,000 issued ordinary shares. Liber has never been a director or employee of either Vulcan Ltd or Mercury plc. The takeover was for bona fide commercial reasons and not for the avoidance of tax. Liber proposed transaction in Mercury plc shares: Liber now wishes to sell all of his shares in Mercury plc. He has received an offer from an unconnected person to purchase these shares on 1 January 2019 at a price of 28 per share. Liber would prefer to sell the shares to his nephew, Janus. However, this would delay the sale as his nephew will not have the necessary funds to purchase the shares until 1 May 2019. Janus has said he will also pay 28 per share. Vesta: Is 66 years old and has never married or had a civil partner. Is in ill-health and is expected to die at some time within the tax year 2019/20. Has made no disposals for capital gains tax purposes in the tax year 2018/19 to date and will not make any in the tax year 2019/20. Has made one previous lifetime gift, of 350,000 cash, to her son, Janus, on 1 June 2018. Vesta investment property: Vesta owns an investment property, which has never been used as her principal private residence. The current market value of the property is less than the price Vesta paid for it, and its value is expected to fall further throughout the tax year 2019/20. Vesta is considering gifting the investment property to Janus in her lifetime, rather than leaving it to him in her estate on death. Janus is the sole beneficiary of Vestas estate. Required:

案例分析题Your manager has had a meeting with the finance director of Hahn Ltd, which is a client of your firm. Extracts from the memorandum she prepared following the meeting, and an email from her in connection with the Hahn Ltd group are set out below: Extracts from the memorandum dated 8 September 2016 Hahn Ltd group Notes 1. All of the companies are UK resident trading companies with a year end of 31 March. 2. All of the companies are registered for the purposes of value added tax (VAT). 3. With the exception of Chad Ltd, all of the companies have been members of the Hahn Ltd group for many years. 4. Hahn Ltd purchased Chad Ltd from Zeno Ltd on 1 September 2016. Prior to its disposal to Hahn Ltd, Zeno Ltd had owned Chad Ltd, and six other wholly-owned subsidiaries, for many years. 5. Joli Ltd is not a consortium company. Budgeted results for the year ending 31 March 2017 Notes 1. The budgeted results include 94,000 of sales made by Hahn Ltd to Stra Ltd. The arms length price of these sales would be 104,000. Both of these figures are exclusive of VAT. No tax adjustments have been made in respect of these sales. The Hahn Ltd group is a large group for the purposes of the transfer pricing rules. 2. Frit Ltds chargeable gain will be in respect of the sale of a building to an unconnected third party for 125,000. The building is a qualifying business asset for the purposes of rollover relief. 3. None of the companies will receive any franked investment income in the year ending 31 March 2017. 4. Frit Ltd will not be able to carry its loss back to the year ended 31 March 2016. 5. All of the companies, with the exception of Frit Ltd and Stra Ltd, were required to pay their corporation tax liabilities for the year ended 31 March 2016 by instalments. Extracts from the memorandum dated 8 September 2016 (continued) VAT The Hahn Ltd group is considering registering as a VAT group. Frit Ltd makes some exempt supplies, such that it is a partially exempt company. The other six companies all make standard rated supplies only. Stra Ltd uses both the annual accounting scheme and the cash accounting scheme. On 1 September 2016, Chad Ltd received a refund of VAT from HM Revenue and Customs (HMRC). The company has not been able to identify any reason for this refund. Email from your manager dated 8 September 2016 Please prepare a memorandum for the client files which addresses the following issues: (a) (i) Chargeable gain of Frit Ltd Calculate the additional amount which would need to be spent on assets qualifying for rollover relief, such that the unrelieved gain would be fully covered by Frit Ltds brought forward capital loss. (ii) Relieving the trading loss of Frit Ltd Prepare explanations, together with supporting calculations, to show how the trading loss of Frit Ltd should be allocated between the companies in the group. The groups priority is its cash flow position and the need to minimise the corporation tax payable by instalments. When preparing these calculations, you should assume that the whole of the chargeable gain of Frit Ltd will be relieved by rollover relief. Prepare a schedule setting out the amounts of corporation tax payable by Hahn Ltd, and the companies it controls (i.e. not Joli Ltd) in respect of the year ending 31 March 2017, together with the related payment dates. (b) Group registration for the purposes of value added tax (VAT) By reference to the specific information in my memorandum only, set out the matters which will need to be considered when deciding which of the companies should be included in a group registration. (c) Chad Ltd refund of VAT Prepare a summary of the actions which we should take, and any matters of which Chad Ltd should be aware, in respect of the refund of VAT. Tax manager Required: Prepare the memorandum as requested in the email from your manager. The following marks are available:

案例分析题Your client, Dan

案例分析题Bex has recently left employment and entered into a business partnership with Amy. Bex requires advice in respect of a loan to the partnership, the calculation of her share of profits and the tax treatment of her redundancy payment. Bex: Is resident and domiciled in the UK. Received an annual salary of 120,000 from her former employer, Cape Ltd. Was made redundant by Cape Ltd on 30 September 2015. Joined Amy, a sole trader, to form a partnership on 1 January 2016. Has no other source of income. Amy and Bex partnership: Will prepare its first set of accounts for the 16-month period to 30 April 2017. Is expected to make a tax-adjusted profit of 255,000 (before deducting interest and capital allowances) for the period ending 30 April 2017. The tax written down value on its main pool at 1 January 2016 is nil. Except for the computer referred to below, no further assets will be purchased by either Amy or Bex for use in the partnership in the period ending 30 April 2017. Profit sharing arrangements: The partnerships profit sharing agreement is as follows: Amy Bex Annual salary nil 30,000 Profit sharing ratio 3 : 1 Bex loans: In addition to her capital contribution, Bex will make a 20,000 loan to the partnership on 1 August 2016. The partnership will use this money wholly for business purposes. This loan will be financed by a 25,000 personal loan from Bexs bank, taken out on the same date. The remaining 5,000 of the bank loan will be used to purchase a computer for use in the partnership. Bex will have 20% private use of this computer. Both the loan from Bex to the partnership and the personal bank loan to Bex will carry interest at the rate of 5% per annum. Bex redundancy package from Cape Ltd: The package comprised a 22,000 statutory redundancy payment and an additional ex-gratia payment of 48,000. Bex also received three months salary in lieu of notice, as specified in her contract of employment. Required:

案例分析题Your manager has forwarded an email to you from Ms Driver, the acting finance director of Set Ltd. Background information from your manager and the email from Ms Driver are set out below. Background information from your manager dated 7 June 2018 The finance director of the Set Ltd group of companies has become seriously ill and Ms Driver is standing in for him. I attach an email from Ms Driver requesting explanations of a number of matters Set Ltd has three wholly owned subsidiaries, Ghost Ltd, Steam Ltd and Wagon Ltd, and also owns shares in a number of other companies. Set Ltd and all of its wholly owned subsidiaries are resident in the UK. You should assume that all of the UK resident companies in the Set Ltd group, including Ghost Ltd, pay corporation tax in instalments every year and will continue to do so, regardless of any loss relief planning entered into. Please provide the explanations requested by Ms Driver in her email. Thank you. Tax manager Email from Ms Driver dated 7 June 2018 (a) Ghost Ltd corporation tax payments Im working on the corporation tax instalment payments which Ghost Ltd will be required to pay in the period from now until 31 December 2018. Set Ltd acquired the whole of the ordinary share capital of Ghost Ltd on 1 June 2018. Ghost Ltd had always prepared accounts to 30 April but following its acquisition has changed its year end to 31 December in line with all of the other companies in the Set Ltd group. The finalised corporation tax liability of Ghost Ltd for the year ended 30 April 2018 was 597,500. I am now estimating the companys liability for the eight-month period ending 31 December 2018 so that I can determine the instalment payments required. As part of this work, I need to know if the companys corporation tax liability can be reduced in respect of the following: Steam Ltd will sell a building on 1 August 2018, which is expected to result in a loss. Wagon Ltd has a trading loss brought forward as at 1 January 2018 of 31,500. It is expected to make a further trading loss in the year ending 31 December 2018. Please explain: how Ghost Ltd could make use of the losses of Steam Ltd and Wagon Ltd in the period ending 31 December 2018. the payments of corporation tax which will need to be made by Ghost Ltd in the period starting today, 7 June 2018, and ending on 31 December 2018. For the purpose of this explanation, please assume that Ghost Ltds corporation tax liability for the eight-month period ending 31 December 2018 is 460,000. (b) Wagon Ltd value added tax (VAT) Wagon Ltd intends to purchase manufacturing components from Line Co. Line Co is a company resident in the country of Terminusa, which is not a member of the European Union. There is no VAT in Terminusa. Wagon Ltd is also planning to sell goods to Signal Co. Signal Co is resident in France, which is a member of the European Union. Signal Co is a small company which is not required to be registered for VAT in France. Neither Line Co nor Signal Co has any links with the Set Ltd group Please explain the VAT implications of these transactions. Email from Ms Driver dated 7 June 2018 (continued) (c) Dee Co and En Co controlled foreign company (CFC) charge Set Ltd owns shares in two CFCs: Dee Co and En Co. Both of these companies have chargeable profits for the purposes of the CFC legislation. Estimates of the relevant financial information in respect of the year ending 31 December 2018 are as follows: I can see from my files that the only exemptions from a CFC charge requiring consideration are the low profits exemption and the low profit margin exemption. Please explain whether Set Ltd will be subject to a CFC charge in respect of either Dee Co or En Co. (d) Steam Ltd Project Whistle Steam Ltd will commence Project Whistle in 2019. As part of the project, Steam Ltd will engage in scientific research, some of which will qualify for the additional 130% tax deduction available in respect of qualifying research and development expenditure. Due to the significant costs involved, Steam Ltd is expected to make a trading loss in the year ending 31 December 2019. Please explain: how any trading loss made by Steam Ltd in the year ending 31 December 2019 can be relieved. the factors to consider when choosing between the available reliefs. Regards Ms Driver Required: Provide the explanations requested in the email from Ms Driver. The following marks are available:

案例分析题Cinnabar Ltd requires advice on the corporation tax treatment of expenditure on research and development, the sale of an intangible asset, and a proposed sale of shares. Cinnabar Ltd has also requested advice on the potential to claim relief for losses incurred in a new joint venture. Cinnabar Ltd: Is a UK resident trading company. Has one wholly-owned UK subsidiary, Lapis Ltd. Is a small enterprise for the purposes of research and development expenditure. Prepares accounts to 31 March each year. Expects to pay corporation tax at the main rate for all relevant accounting periods. Intends to enter into a joint venture with another UK company, Amber Ltd. This joint venture will be undertaken by a newly incorporated company, Beryl Ltd. Research and development expenditure year ended 31 March 2015: The expenditure on research and development activities was made up as follows: The staff costs include a fee of 10,000 paid to an external contractor, who was provided by an unconnected company. The remainder of the staff costs relates to Cinnabar Ltds employees, who are wholly engaged in research and development activities. The rent is an appropriate allocation of the rent payable for Cinnabar Ltds premises for the year. Sale of an intangible asset to Lapis Ltd: The intangible asset was acquired by Cinnabar Ltd in May 2010 for 82,000. The asset was sold to Lapis Ltd on 1 November 2014 for its market value on that date of 72,000, when its tax written down value was 65,600. Sale of shares in Garnet Ltd: Cinnabar Ltd acquired a 12% shareholding in Garnet Ltd, a UK resident trading company, in July 2009 for 120,000. Cinnabar Ltd sold one third of this shareholding on 20 October 2014. Cinnabar Ltd intends to sell the remaining two thirds of this shareholding on 30 November 2015 for 148,000. It would be possible to bring forward this sale to October 2015 if it is beneficial to do so. Beryl Ltd: Will be incorporated in the UK and will commence trading on 1 January 2016. Is anticipated to generate a trading loss of 80,000 in its first accounting period ending 31 December 2016. Will have no sources of income other than trading income. Alternative capital structures for Beryl Ltd: Two alternative structures have been proposed for the shareholdings in Beryl Ltd: Structure 1: 76% of the shares in Beryl Ltd will be held by Amber Ltd, with the remaining 24% held by Cinnabar Ltd; Structure 2: 70% of the shares will be held by Amber Ltd, 24% by Cinnabar Ltd and the remaining 6% held personally by Mr Varis, the managing director of Amber Ltd. Required:

案例分析题Your manager has received schedules of information from Ray and Shanira in connection with their personal tax affairs. These schedules and an extract from an email from your manager are set out below. Schedule of information from Ray dated 8 June 2016 I was born in 1958. I am resident and domiciled in the UK. Shanira and I are getting married on 17 September 2016. Ray unincorporated business I was employed part-time until 31 March 2016. The annual salary in respect of my part-time job was 15,000. I receive bank interest (net) of 3,000 and cash dividends of 3,420 each year. The whole of my income tax liability has always been settled via tax deducted at source. I began trading on 1 June 2016. I purchased a computer on 3 June 2016, which is used both in the business and personally. I am not registered for the purposes of value added tax (VAT). You have advised me that my taxable trading profits have been calculated using the accruals basis, rather than the cash basis, and the budgeted taxable trading profits of the business are: Eight months ending 31 January 2017 35,000 Year ending 31 January 2018 66,000 You have already informed me that my taxable trading profit based on these budgeted profits, and my income tax liability in respect of all of my income will be: Tax year Taxable trading profit Income tax liability 2016/17 46,000 10,762 2017/18 66,000 18,762 What tax payments will I be required to make between 1 July 2016 and 30 September 2018? Schedule of information from Shanira dated 8 June 2016 I was born in 1960. I am resident and domiciled in the UK. Ray and I are getting married on 17 September 2016. Gifts from Shanira to Ray On 1 February 2016, I gave Ray a house situated in the country of Heliosa. We have only ever used this house for our holidays. The house was valued at 360,000 at the time of this gift. I purchased the house on 1 September 1999 for 280,000. I will make the following further gifts to Ray between now and the end of the calendar year 2016: Painting I purchased this painting at auction for 15,000 on 1 March 2012. It is a painting which we both love and would never sell. However, I obviously paid too much for it, as its current market value is only 7,000. Shares in Solaris plc I will give Ray the whole of my holding of 7,400 ordinary shares in Solaris plc. The current market value is 920 per share. I acquired these shares on 1 October 2014 when Solaris plc purchased the whole of the ordinary share capital of Beem plc. This takeover was a genuine commercial transaction. At the time of the takeover: I owned 3,700 ordinary shares in Beem plc, which I had purchased on 1 June 2008 for 12,960. In addition to the shares in Solaris plc, I also received 14,800 in cash from Solaris plc. An ordinary share in Solaris plc was worth 840 on 1 October 2014. Extract from an email from your manager dated 9 June 2016 Additional information in relation to Shanira Shanira is a higher rate taxpayer. The gift of the house to Ray on 1 February 2016 was Shaniras first lifetime gift. You should use the current market values of the painting and the shares in Solaris plc in order to calculate the chargeable gains arising on these gifts. Neither gift relief nor entrepreneurs relief will be available in respect of the proposed gift of the shares in Solaris plc. Shanira has not made any other chargeable disposals since 5 April 2015. There is capital gains tax in the country of Heliosa but no inheritance tax. There is no double tax treaty between Heliosa and the UK. Please prepare a memorandum for the client files which addresses the following issues: (a) Ray unincorporated business (i) Calculations of the income tax and national insurance contribution payments to be made between 1 July 2016 and 30 September 2018 and the dates on which they will be payable. Ray has told me that he does not intend to withdraw all of the profits of the business. Instead, he will either increase his inventory levels or acquire additional equipment, and he has asked how this will affect his taxable income. (ii) Ray is incurring input tax and is considering registering voluntarily for VAT. Set out the information we need in order to advise him on whether or not voluntary registration is possible and/or financially beneficial and explain why the information is needed. An explanation of whether or not Ray can recover the input tax in respect of the computer purchased on 3 June 2016 if he registers for VAT. (b) Gifts from Shanira to Ray (i) A calculation of the capital gains tax payable in respect of the gift of the house in Heliosa based on the currently available information, together with any further information required to finalise the liability, and the due date of payment. An explanation, with supporting calculations, of when the further gifts should be made to Ray. The objective here is to maximise Rays capital gains tax base cost without creating a capital gains tax liability for Shanira. In order to achieve this objective, you should consider dividing the proposed gift of the shares into two gifts to be given on different days. (ii) The maximum possible inheritance tax liability which could arise in respect of the proposed gifts to Ray of the painting and the shares, if Shanira were to follow our advice in respect of their timing, together with the circumstances in which this liability would occur. Tax manager Required: Prepare the memorandum as requested in the email from your manager. The following marks are available:

案例分析题Your manager has sent you the notes she prepared following a meeting with Pippin, an established client of your firm who is resident and domiciled in the UK. The notes together with an email from your manager are set out below. Meeting notes from your manager dated 8 June 2017 Commencement of Pinova business Pippin intends to start a new unincorporated business, Pinova, on 1 August 2017. He has identified two alternative strategies: strategy A and strategy B. The budgeted tax-adjusted profit/(loss) of the two strategies are set out below. These figures are before the adjustments necessary in respect of the equipment purchases and employment costs (see below). Equipment purchases and employment costs The above profit/loss figures need to be adjusted in respect of the following: Both strategies will require Pippin to purchase equipment in August 2017 for 8,000. Strategy B will require two employees from 1 April 2018. Pippin will pay each of them a gross salary of 2,000 per month. He will also pay them 050 per business mile for driving their own cars. He expects each of them to drive 250 business miles per month. Strategy A will not require any employees. Pippin will claim the maximum capital allowances available to him. He will also claim opening years loss relief in respect of the trading loss arising under strategy B. Cessation of previous business Pippins previous unincorporated business ceased trading on 31 December 2016. The taxable profits of the business for its final three tax years were: 2014/15 82,000 2015/16 78,000 2016/17 14,000 Pippin had no other taxable income during these three years. Receipt of 75,000 Pippins aunt, Esme, died on 31 January 2017. On 1 September 2011, Esmes father (Pippins grandfather) died leaving the whole of his estate to Esme. However, on 1 January 2012 Pippin received 75,000 but cannot remember whether the money came from Esme or from his grandfathers estate. On 1 November 2011, Esme had transferred cash of 375,000 to a trust for the benefit of her children. Shares in Akero Ltd Pippin owns 16,000 shares in Akero Ltd which have a current market value of 450 per share. Pippin subscribed 16,000 for these shares on 4 January 2015. Pippin obtained income tax relief of 4,800 (16,000 x 30%) under the enterprise investment scheme (EIS) in the tax year 2014/15. He also claimed EIS deferral relief in that year of 16,000 in relation to a chargeable gain on the sale of a painting. Pippin is considering selling 5,000 of his Akero Ltd shares in order to fund his personal expenditure during the start-up phase of the Pinova business. Extract from an email from your manager dated 8 June 2017 Please prepare a memorandum for the client files which addresses the following issues: (i) Additional funds required for the 20-month period from 1 August 2017 to 31 March 2019 Pippins taxable income will consist of the profits of the Pinova business and, for the tax year 2018/19 onwards, he expects to receive dividend income of 1,500 per year. His personal expenditure is 4,000 per month. I want you to complete the table below to calculate the additional funds which Pippin would require during the first 20 months of the business under each of the two strategies (A and B) after putting aside sufficient funds to settle his tax liabilities for the tax years 2017/18 and 2018/19. You should then evaluate the two strategies by reference to the results of your calculations. Pippin and I calculated his total pre-tax cash receipts; you do not need to check them. The only adjustment required to these pre-tax cash receipts is the cost of employing the two employees. (ii) Receipt of 75,000 Explain, with supporting calculations, the inheritance tax implications for Pippin of the receipt of the 75,000. (iii) Sale of shares in Akero Ltd Explain the tax liabilities which would result if Pippin were to sell 5,000 of his Akero Ltd shares in the tax year 2017/18. Tax manager Required: Prepare the memorandum as requested in the email from your manager. The following marks are available:

案例分析题Luiza, the finance director of Damiana plc

案例分析题Hyssop Ltd wishes to provide assistance with home to work travel costs for Corin, who is an employee, and also requires advice on the corporation tax implications of the purchase of a short lease and the value added tax (VAT) implications of the sale of a warehouse. Hyssop Ltd: Is a UK resident trading company. Prepares accounts to 31 December each year. Pays corporation tax at the small profits rate. Is registered for VAT. Leased a factory on 1 February 2015. Corin: Is resident and domiciled in the UK. Is an employee of Hyssop Ltd, who works only at the companys head office. Earns an annual salary of 55,000 from Hyssop Ltd and has no other source of income. Hyssop Ltd assistance with home to work travel costs: Hyssop Ltd is considering two alternatives to provide assistance with Corins home to work travel costs. Alternative 1 provision of a motorcycle: Hyssop Ltd will provide Corin with a leased motorcycle for travelling from home to work. Provision of the leased motorcycle, including fuel, will cost Hyssop Ltd 3,160 per annum. This will give rise to an annual taxable benefit of 3,160 for Corin. Corin will incur no additional travel or parking costs in respect of his home to work travel. Alternative 2 payment towards the cost of driving and provision of parking place: Hyssop Ltd will reimburse Corin for the cost of driving his own car to work up to an amount of 2,240 each year. Corin estimates that his annual cost for driving from home to work is 2,820 Additionally, Hyssop Ltd will pay AB Parking Ltd 920 per year for a car parking space for Corin near the head office. Acquisition of a factory: Hyssop Ltd acquired a 40-year lease on a factory on 1 February 2015 for which it paid a premium of 260,000. The factory is used in Hyssop Ltds trade. Disposal of a warehouse: Hyssop Ltd has agreed to sell a warehouse on 31 December 2015 for 315,000, which will give rise to a chargeable gain of 16,520. Hyssop Ltd had purchased the warehouse when it was newly constructed on 1 January 2012 for 270,000 (excluding VAT). The warehouse was used by Hyssop Ltd in its trade until 31 December 2014, since when it has been rented to an unconnected party. Until 1 January 2015, Hyssop Ltd made only standard-rated supplies for VAT purposes. Hyssop Ltd has not opted to tax the warehouse for VAT purposes. The capital goods scheme for VAT applies to the warehouse. Required: Note: You should ignore value added tax (VAT) for parts (a) and (b).

案例分析题Your firm has been asked to provide advice to two unrelated clients, Stella and Maris. Stella requires advice on the tax implications of making an increased contribution to her personal pension scheme. Maris requires advice regarding the lump sum payment she has received from her pension scheme and the inheritance tax exemptions available on her proposed lifetime gifts. (a) Stella: Is resident and domiciled in the UK. Was born on 1 May 1958. Receives a gross salary of 80,000 each year. Has income from a portfolio of unfurnished properties, totalling 92,000 in the tax year 2015/16. Has no other source of taxable income. Wishes to make an increased contribution to her personal pension scheme in the tax year 2015/16. Personal pension scheme contributions: Stella has contributed 40,000 (gross) to her personal pension scheme in each of the four tax years 2011/12, 2012/13, 2013/14 and 2014/15. Stella wishes to make an increased contribution of 90,000 (gross) in the tax year 2015/16. Required: Calculate Stellas income after tax and pension contributions for the tax year 2015/16 if she does pay 90,000 (gross) into her personal pension scheme. (b) Maris: Is resident and domiciled in the UK and is widowed. Has three married children and five grandchildren under the age of 12. Attained the age of 68 on 30 January 2015 and decided to vest her pension benefits on that date. Wishes to make regular gifts to her family in order to reduce inheritance tax on her death. Personal pension fund: Maris had a money purchase pension scheme which was valued at 1,550,000 on 30 January 2015. Maris took the maximum amount possible as a lump sum on that date. Maris does not understand why the amount she received was 447,500. Assets and income: In addition to pension income and savings income totalling around 60,000, Maris receives dividends from shareholdings in quoted companies of around 45,000 each year. The shareholdings in quoted companies are currently valued at 980,000. Maris wishes to gift some of the shares or the dividend income to her children and grandchildren on their birthdays each year. Maris already makes gifts each year to use her annual exemption for inheritance tax purposes. Required: (i) Explain how the cash of 447,500 received by Maris as a lump sum from her pension scheme was calculated. (ii) Advise Maris of TWO relevant exemptions from inheritance tax which she will be able to use when making the birthday gifts, together with any conditions she will need to comply with in order to obtain them.

案例分析题Acryl Ltd and Cresco Ltd are two unrelated companies. Acryl Ltd requires advice on the implications of being placed into liquidation, particularly the timing of distributions to its shareholders. Cresco Ltd requires advice on the relief for losses on the cessation of trade, and its obligations in relation to value added tax (VAT). (a) Acryl Ltd: Is a UK resident trading company. Has always prepared accounts to 30 June annually. Has substantial distributable profits. 70% of the companys share capital is owned by Mambo Ltd. The remaining 30% of the share capital is owned by Mambo Ltds managing director, Alan. Mambo Ltd and Alan both subscribed for their shares at par value on 1 March 2010. Mambo Ltd: Is a UK resident trading company. Alan: Will be an additional rate taxpayer in the tax year 2016/17. Will be eligible for entrepreneurs relief on the disposal of his shares in Acryl Ltd. Liquidation of Acryl Ltd: Winding up will commence on 1 January 2017 with the appointment of a liquidator. It is anticipated that the winding up will be completed on 31 March 2017, when the company will cease trading. Alternative timing of distributions being considered by Acryl Ltd: Acryl Ltd is prepared to distribute the available profits to its shareholders on 31 December 2016. Alternatively, Acryl Ltd will delay the distribution until the completion of the winding up of the company on 31 March 2017. Required: (i) State the corporation tax consequences arising from the commencement of Acryl Ltds winding up on 1 January 2017. (ii) Explain the tax implications for both Mambo Ltd and Alan if the distribution to be made by Acryl Ltd occurs either on 31 December 2016, or alternatively on 31 March 2017, and conclude as to which date would be preferable. (b) Cresco Ltd: Is a UK resident trading company. Commenced trading on 1 April 2012. Is registered for the purposes of value added tax (VAT). Has made significant trading losses in recent months such that the company will need to cease trading on 31 October 2016. Cresco Ltd trading losses: Recent and anticipated results are as follows: Cresco Ltd always claims relief for trading losses as early as possible. Required: (i) Set out, together with supporting explanations, how Cresco Ltd will claim relief for the trading losses incurred and identify the amount of trading losses which will remain unrelieved after all available loss reliefs have been claimed. (ii) Advise Cresco Ltd of the value added tax (VAT) implications of the cessation of its trade.

案例分析题Max ceased trading two years ago

案例分析题Your manager has had a meeting with Florina and Kanzi who are clients of your firm. Florinas father, Winston, also attended the meeting. The notes prepared following the meeting and an email from your manager setting out the work he requires you to do are set out below. Meeting with Florina, Kanzi and Winston on 6 September 2017 The meeting was attended by Florina and Kanzi (who have been living together since 1999 but are not married) and Winston (Florinas father). All three individuals are resident and domiciled in the UK. They have no sources of income or chargeable gains other than those referred to below. Florina Florina is a director of and shareholder in Flight Hip Ltd. She earns an annual salary of 50,000 and receives a dividend of 20,000 from the company every year. She received total taxable benefits of 25,000 from the company in the tax year 2016/17. Flight Hip Ltd is not a close company Florinas benefits include a company car together with free petrol for both business and private use. The cars benefit percentage by reference to its CO2 emissions is 26%. Florina drives 19,000 miles per year of which 2,000 miles are in the performance of her employment duties. The total cost of all of the petrol used by Florina in the tax year 2016/17 was 3,000. Florinas only other income consists of dividends of 1,500 received in June every year from Landing Properties Ltd. Landing Properties Ltd is an unquoted UK resident company, unrelated to Flight Hip Ltd. Florina purchased 4,000 shares (a holding of less than 1%) in Landing Properties Ltd for 8,000 on 1 August 2001. She is considering selling these shares to Padarn, an unconnected individual, for their market value of 40,000. This would result in a capital gains tax liability of 4,180. I suggested that it may be possible to reduce the tax due by making a gift of some of the shares to Kanzi, who would then sell them to Padarn, and I agreed to provide Florina with further details. Kanzi Kanzi is an artist. His annual taxable trading income is approximately 14,000. Although Kanzi is not employed by Flight Hip Ltd, the company provides him with a car and free petrol. The cars benefit percentage by reference to its CO2 emissions is 23%. Kanzi drives 5,000 miles per year; the total cost of the petrol used by Kanzi in the tax year 2016/17 was 800. Winston Winston is in very poor health and is not expected to live for more than 12 months. It is estimated that Winstons total chargeable estate is currently worth 1,400,000. The values of his assets are not expected to change between now and his death. Winston intends to make a donation of 150,000 to a registered UK charity. This donation will be either a lifetime gift or a legacy from his estate on death. Winstons current will leaves the whole of his estate to Florina and his two other children. Winstons only previous lifetime gift was a chargeable transfer, after the deduction of exemptions, of 200,000 to a trust on 1 June 2015. Winston wants to carry out some sophisticated tax-planning in order to reduce the inheritance tax which will be payable in respect of his death estate. Email from your manager dated 7 September 2017 Please carry out the following work. (a) Florina and Kanzi Florinas remuneration from Flight Hip Ltd Calculate the total tax saving which could be achieved by Florina and Flight Hip Ltd if, in the tax year 2017/18, the company were to make a single lump sum payment of 20,000 into a personal pension fund for Florina instead of paying her a dividend of 20,000. These calculations should take account of the tax which Florina will pay when she eventually withdraws the 20,000 from the pension fund. You should assume that: (1) there will be no further contributions into the fund in future years; and (2) Florina will be a basic rate taxpayer when she makes a withdrawal from the fund. Provision of free petrol By comparing the income tax due in respect of the petrol with the value of the petrol received, determine whether Florina and Kanzi would be better off if: Florina were to reimburse Flight Hip Ltd for the cost of the petrol used by her for private purposes; and/or Flight Hip Ltd were to stop providing Kanzi with free petrol. Sale of shares in Landing Properties Ltd Explain whether or not gift relief would be available in respect of a gift of shares in Landing Properties Ltd from Florina to Kanzi. On the assumption that gift relief would be available, calculate, with supporting explanations, the number of shares which Florina should give to Kanzi, prior to the eventual sale of the shares to Padarn, and the maximum reduction in the total capital gains tax payable which could be achieved. (b) Winstons charitable donation Prepare calculations, with supporting explanations, to show, by reference to inheritance tax only, whether it is more tax-efficient for Winston to make the charitable donation now or via his will. You should ignore the possibility of any further inheritance tax planning taking place. (c) Becoming Winstons tax adviser Winston wants to appoint us to replace his existing tax advisers. Explain any difficulties which we may have complying with the fundamental principles of professional ethics in relation to acting for Winston and suggest appropriate safeguards. Tax manager Required: Carry out the work requested in the email from your manager. The following marks are available:

问答题1.YourmanagerhasreceivedaletterfromJodieinconnectionwithherproposedemigrationfromtheUK.Extractsfromtheletterandfromanemailfromyourmanageraresetoutbelow.ExtractfromtheletterfromJodieExtractfromanemailfromyourmanagerRequired:PreparetheparagraphsforinclusioninaletterfromyourmanagertoJodieasrequestedintheemailfromyourmanager.Thefollowingmarksareavailable:

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