ACCA高級(jí)稅務(wù)ATX練習(xí)冊簡化答案

1

(a)ThecostofestablishingCSOPisanallowabledeductionwhencomputingtaxadjustedtradingincome.

Themanagementbonusesarenotanallowablecostastheyhavenotbeenpaidwithinninemonthswithinendofaccoutingperiod.

Theaddtionaltaxdeductioninrespectofresearchanddevelopmentexpenditureis86%,not96%.Inrelationtopaymentsforsubcontractedlabour,thistraditionaldeductionisonlyavailablefor65%oftheamountpaid.Sothetotalreductionis21000+27000+(21000+27000*65%)*86%=81153.

Thecapitalgainstaxannualexemptamountisnotavailabletocompanies.

(b)Closecompany

FortiLtdwillbeaclosecompanyifitiscontrolledbyanynumberofdirectorswhoareshareholdersoritsfivelargestshareholders.

Acompanyiscontrolledbythoseshareholderswhoownmorethanhalfofthecompanysharecapital.

ControlofFortiLtdcanbeexercisedby7shareholdersholding58.3%ofshares.

Itwillonlybecloseifsomeofitsshareholdersareassociatedwithwachother.

Theexemptionforsmallandmediumenterpriseisunlikelytobeavailable,regardlessofthesizeofgroup,asthereisnodoubletaxtreatybetweenUKandArrowsia.

Undertransferpricingrules,ifBrownhassoldcomponentstoforlessthanarm’slengthprice,itisrequiredtoincreaseitstaxableprofitsbyexcessofarm’slengthpriceoverpricecharged.

(c)

Valueaddedtaxannualaccountingscheme

Conditions

Thecompany’sVATreportingandpaymentsmustbeuptodate,suchitsVATisnotincreasing.

Taxablesuppliesmustnotbeexpectedtoexceed1350000infollowing12months.

ThecompanymustnotifyHMRCandleavetheschemeifitstaxablesuppliesforayearexceed1600000.

Theschemeisnotavailablewhereregistrationisinnameofagroup.

Operationofscheme

Thecompanywillberequiredtomakeninemonthlypaymentsstartingatendofthefourthmonthoftheyear.

Eachpaymentisequalto10%ofthecompany’sliabilityforthepreviousyearasadjustedforanyaddtionalinformationprovidedtoHMRC.

Acompanycanmakethreelargerinterimpaymentsequalto25%ofitsliaibilityforthepreviousyear.

ThecompanymustsubmititsVATreturnwithintwomonthsoftheendoftheyeartogetherwithanyfinalbalancingpayment.

(d)

ThemaximumIHTliabilitywillarisewhenshedieswithin7yearsafterherlifetimegifttoherdaughter.

Onherdeath,businesspropertyreliefisnotavailable.

VycLtdisanunquotedtradingcompany,soitisrelevantbusinessproperty.

Emmahasownedthesharesforatleasttwoyears.

However,BPRwillnotbeavailableifsharesarenolongerqualifyingbusinessproperty.

EdwardhasdiedbeforeEmma,whilestillowningtheshares.

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(ii)

Inordertomaximisebenefitofgroup’scashflowposition,FritLtd’stradinglossshouldbesurrendedtothosecompaniespayingcorporationtaxbyquarterlyinstalments.

Firsttoanycompanywhoseprofitscanbereducedtopaymentbyinstalmentsthresholdandinstalmentswillnolongerberequired.

Thentoanyothercompanywithprofitsinexcessofthepaymentbyinstalmentsthresholdandinstalmentswillbereduced.

Finally,toanyothercompany.

ChadLtdwillhavebeenamemberofthegroupreliefgroupforonly7monthsoftheaccountingperiod.ThemaximumlosswhichcanbesurrenderedbyFritLtdtoChadLtdis315000whichisthelowerofFritlossfor7monthsof540000*7/12=315000andChadprofitfor7monthsof675000*7/12=393750.Itisnotsufficienttoreducethetaxabletotalprofitsto187500butitwillreducecorporationtaxliabilityandinstalmentsdue.

LowerandupperlimitforChadLtdis50000/13=3846and250000/13=19230.

Paymentschedule

DatePaymentWorking

2024.10.1442.5(90+80)/4

2025.1.1442.5

2025.4.1442.5

2025.7.1442.5

2026.1.184.9875+9.98

(b)

AgroupregistrationcouldbemadeinrespectofallcompaniesinHahnLtdgroupwiththeexceptionofJoliLtd.Itisnotnecessarytoincludeallofqualifyingcompanieswithgroupregistration.

SalesfromonecompanyintheVATgrouptoanotherwouldbedisregardedforpurposesofVAT.SotherewillbenorequirementtochargeVATonsalesfromHahntoStra.

Theannualaccountingschemeisnotavailablewherecompaniesareregisteredasagroup.Thecashaccoutingschemeisavailablebutonlyifgroup’staxableturnoverwaslessthan1350000.ThesemattersshouldbeconsideredbeforedecidingwhetherornotStraLtdshouldbeincludedingroupregistration.

(c)

Weshouldinvestigtethereasonfortherefund.IfitiserrorofHMRC,weshouldinformChadLtdthatfailingtoreturnthemoneymayresultincivilorcriminaloffense.

WeshouldalsoadviseChadLtdtorepaythefundassoonaspossibletominimiseanyinterestandpenalties.

Ifthecompanyrefusetoreturnthemoney,weshouldconsidertoceasetoactforit.WeshouldnotifyHMRCthatwenolongeractfor,butwedonothavetoprovidereasons.Weshouldalsoconsiderwhetheritisnecessarytomakemoneylaunderingreports.

(d)

Theinheritancetaxrateat36%willapplyasthechargeableestatebeforedeductionofcharitabledonationbutafterdeductionofnilratebandis444000+175000+70000=689000andgifttocharityof70000ismorethan10%ofthisamount.

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(a)

Rateofcorporationtax

Therateofcorporationtaxpaidwilldependoneachcompanyaugmentedprofitsrelativetolowerandupperlimits.Thelimitsaredividedbynumberofassociatedcompaniesintheperiodwhichare18.

Lowerlimitis50000/18=2777andupperlimitis250000/18=13888.

Requirementtopaycorporationtaxbyinstalments

AcompanyinHeyerPlcgroupwillberequiredtopaycorporationtaxininstalmentsifitstotaltaxableprofitsexceed1500000/18=83333and

HeyerPlccapitalgainsgroup

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(a)

ThegainonsaleofsharesinRochaLtdwillnotbesubjecttotaxifconditionsofsubstantialshareholdingexemptionissatisfiedwhichRochaLtdmustbeatradingcompanyandatleast10%ofordinarysharecapitalmusthavebeenheldfor12monthsduringthe6yearsbeforesale.Therefore,thesaleshouldbedelayeduntil2024.12.1.

Taxablegains

Ifsalesison2024.10.1,theSSEisnotavailableandtaxablegainwillbecalculatedas

Notes:

1.Degroupingcharge

AdegroupingchargewillariseasRochaandSeckelaremembersofHarrowTanchargeablegainsgroup.Thebuildingwillbetransferredautomaticallyatnogainandnoloss.Rochawillleavethechargeablegainsgroupwhenitceasestobe75%subsidiaryonsaleofsharesanditwilloccurwithin6yearsaftertheacquisitionofbuilding.Rochawillstillownthebuildingwhenitleavesthegroup.

Thedegroupingchargeiscalculatedasmarketvaluelesscost.

2.Rolloverrelief

Companysharesarenotqualifyingassets,soitshouldnotrolloveranygainonsaleofshares.

(b)Grouprelief

Proofofcorporationbusinessaddressandregisteredofficeofeachcompanyinthegroup.

Thegroupstructure,directorsandshareholdersofcompany.

(c)Rolloverrelief

Thewholegaincanberolledoverifthequalifiedassetsarepurchasedinqualifiedperiodofatleastof1800000.Anyamountofsalesproceedswhichhasnotbeenreinvestedtoacquirequlifyingbussinessassetscannotberelievedandwillbesubjecttocorporationtaxuptomaximumof85000.

Qualifyingbussinessassetscanbeacquiredbyanycompanyinthesamechargeablegainsgroupasthecompanywhichhassoldaqualiyingbusinessassets.

Thequalifyingperiodisfrom1yearbeforeto3yearsafterthedateonwhichthequalifyingbusinessassetisdisposed.

Thelandandbuildingqualifyforrolloverrelief.

Furtherinformationisneededinrespectofmachineryanditmustbefixedratherthanmovable.

Patentsandtrademarksareintangibleassetswhicharenotqualiftingassetsforchargeablegainsgrouprolloverrelief.

(e)Newcontractsforbusiness

Whenweobtainconfidentialinformationasresultofbusinessrelationship,weshouldnotdiscloseittothirdparty.

Confidentialityandprofessionalbehaviourarefundamentalprinciplesofcodeofethics.

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Memorandum

Client:

Subject:

Preparedby:

Date:

(c)

WemustobtainevidenceofidentityandaddressofSnowdon.

Wemustconsiderthreatstofundamentalprinciplesofcodeofethics,suchasintegrityandprofessionalcompetence.

Weshouldnotaccepttheappointmentunlessthreatscanbereducedtoacceptablelowlevel.

WeshouldcontactSnowdonexistingtaxadvisertoensuretherehasbeennoethicalproblems.

Wemustconsiderwhethertomakemoneylaunderingreportstomoneylaunderingofficer.

(d)

7

Wanda’spost-taxinheritancefromLucy

VoluntaryregistrationforVAT

Voluntaryregistrationwillbepermittedasthebusinesswillbemakingtaxablesupplies.

Advantages:

Thesaleofchildren’sclothesisazeroratedsupplyforVAT.

Itwouldremovetheneedtomonitortheturnoverofthebusinesswithregardtothecompulsoryregistrationlimitandaviodthepossibilityofanypenatlyforlateregistration.

Itwouldenablethebusinesstorecoveranyinputtaxincurred.

Disadvantages:

TherewillbeaddtionaladminitrationduetotheneedtorecordandreportVATpostionofbusiness.

Theremaybeinterestandpenaltiesifinaccuratefiguresarereportedordeadlinesarenotadheredto.

8

Mia’sgiftofbuildingwillbetreatedassaleatmarketvalueforpurposeofcalculatingthechargeablegain.Thisgivesrisetoagainof370000-130000=240000.

Incorporationrelief

Thefollowingthreeconditionsshouldbesatisfied:

BusinessistransferredasagoingconcernwhenitissoldtoHKRLtd.

AllassetsofthebusinessaresoldtoHKRLtd.

TheconsiderationincludessharesinHRKLtd.

Thetradinglosscanbesetagainst thetotalincomeof2024/25andor2023/24.Thechargeablegainsofeitherorbothsametwoyearsifclaimhasbeenmadeagainsttotalincomefortheyears.

ThefirstavailableincomereceivedfromHKRltd.

10

Memorandum

For:

Client:Corey

Subject:Personalandcompanytaxaffairs

Preparedby:Taxsenior

Date:1March2025

Corey’sresidencywillbedeteminedbyreferencetostatutoryresidencytest,whichrequiresweapplyanumberoftodeteminewhetherheisUKresidentforthetaxyear.

Asyouhavealreadyconfirmed,Corey'sstatuscannotbedeterminedautomatically,andthereforeitwillbedeterminedbythenumberoftieshehaswiththeUK.HewasnotUKresidentinanyofthethreetaxyearspriorto2024/25,andhewillhavebeenintheUKforbetween91and120daysin2024/25.HewillbeUKresidentifhesatisfiesthreeormoreUKties.

Thetiestobeconsideredare:

AsUKresident,hewillbesubjecttoUKincometaxonhisoverseasincomeinaddtiontohisUKincome.HecanobtainreliefintheUKforanytaxsufferedinMedorawhichisthelowerofUKtaxonoverseasincomeandoverseastaxonoverseasincome.

Coreywillberegardedasonlytemporarilynon-UKresidentwhenshelivesinMedora.ThisisbecausehewasabsentfromtheUKforlessthan5yearsandhewasUKresidentforatleastfourofseventaxyearsimmediatelybeforedeparture.HewillbesubjecttoUKCGTonanyassetssoldwhenhewaslivingoverseas.AnygainorlossaresubjecttoCGTinthetaxyearwhenhereturntotheUK.

Advantagesoflifetimegift

Asthegiftswillbepotentiallyexempttransfer,nonIHTwillbechargedifEmerdiesmorethan7yearsafterthegift.

IfEmerdieslessthan7yearsbutmorethan3yearsafterthegift,taperreliefwillbeavailableonIHT.Thereliefis20%ofthetaxifshesurvivesthegiftby3yearswithafurther20%reliefforeachaddtionalyear.

Thevalueofthelifetimegiftisdeterminedatthetimeofgiftratherthanatthedateofdeath.Thelifetimegiftofportraitwillbechargedonvalueattimeofgiftratherthanvalueatthetimeofdeathwhichisexpectedtobehigher.

Thewatercolorisexpectedtobefallinvalue.However,ifitsvalueattimeofdeathislowerthantimeofgift,fallinvaluereliefwillbeavailable.Asaresult,thevalueofthepaintingatthetimeofdeathwillbeusedtocalculateanyIHT,resultinginalowertaxcharge.

(d)

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(a)

AccordingtoAppendix1,post-taxproceedsforVNLLtdasaresultofsaleoftheintangiblefixedassetsis122810.

Priortotheappointmenttoliquidator

Paymentmadetoshareholderspriortoappointmenttoliquidatorwillbesubjecttoincometaxasdividendinanormalway.

Thefirst1000ofdividendincomefromshareholdingwillbetaxedatnilrate.Theexcessover1000willbetaxedasshareholderstopsliceofincome.

Anyamountwhichfallsintoashareholder’sbasicratebandwillbesubjecttoincometaxat8.75%.Theremainingamountwillbetaxedat33.75%.

Afterappointmentofliquidator

TheamountspaidtoshareholderswillrepresentproceedsinrespectofapartdisposaloftheirsharesandwillbesubjecttoCGT.

Anyamountofchargeablegainwhichisnotcoveredbyshareholder’sannualexemptamountof6000willbesubjecttoCGT.

Wherethedisposalofthesharesqualifiesforbusinessassetdisposalrelief,thewholeofanychargeablegainwillbetaxedat10%.

AsVNLLtdisatradingcompany,BADRwillbeavailablewhenshareholdersholdatleast5%ofcompany’sshareholdingandbeenemployeeorofficerofthecompanyforaperiodofatleast2yearsbeforethecessationoftradeandsharesaredisposedwithin3yearsofceassationoftrade.

IfBADRisnotavailable,chargeablegainswillbetaxedaftercalculatingtaxonincome.

Anyamountofchargeablegainfallsintoshareholder’sbasicratebandwillbetaxedat10%andthebalanceofchargeablegainwillbetaxedat20%.

(b)(i)

Newemployee

AccordingtoAppendix2,after-taxcostforJoeoftakingontheemployeeiscalculatedas23681.

(ii)

Costsalreadyincurredandthebusinesspremises

Recoveryofinputtaxforthepurposeofvalueaddedtax

JoewillbeabletorecoverinputVATinrespectofservicesprovidedtohimforbusinesspurposesinthesixmonthsbeforeregisteringforVAT.

Accordingly,asJoefirstincurredthesecostmorethansixmonthsago,heshouldconsiderregisteringforVATassoonaspossibleinordertorecoverasmuchoftheinputtaxrelatingtotheconsultancyserviceshecan.

Premises

TheamountofinputtaxwhichJoecanrecoverwilldependonwhetherornotheoptstotaxthebuildingforVAT.

Ifhechoosestotaxthebuilding,hewillbeabletorecoveralloftheinputtax.Ifnot,hewillonlybeabletorecovertwo-thirdsofit.

Thegrangtintotheleasewillbeanexemptsupplyunlessanoptiontotaxismadeinrepectofthebuilding.

ThebuildingwillnotbesubjecttocapitalgoodsschemeasitsVATexclusivecostwillbelessthan250000.

(c)Becomingtaxadvisers

Weshouldconsiderwhetherthereareanythreatstofundamentalprinciplesofprofessionalethics,suchasintegrityandprofessionalcompetenceandduecare.

Ifanythreatsareidentified,weshouldnotacceptappointmentunlessthreatscanbereducedtoacceptablelowlevel.

WeshouldensureFionaisnotinvolvedinanyformofmoneylaundering.

WeshouldobtainpermissionfromFionatocontactexistingtaxadvisersinordertoensurethereisnoethicalthreats.

WeshouldsendletterofengagementtoFionawithtermsofagreementandagreedresponsiblities.

(d)Taxationofoverseasincome

TheremittancebasisisavailablewhenanindividualisUKresidentbutnotUKdomiciled.

Theremittancebasisisappiledautomaticallyifunremittedoverseasincomeandcapitalgainsislessthan2000inonetaxyear.

TheamountofFionataxableoverseasincomewillbeautomaticallycalculatedontheremittancebasisasherunremittedoverseasincomeisParellianParkinterestwhichis1200.ShewillnotbesubjecttoremittancebasischargeandkeepherPAandAEA.

Theimpactofamajorchangeinnatureorconductoftradeinrestrictinglossreliefisonlyrelevantwhereitendsorbeginswithchangeinownershipofcompany,nottheacquisitionoftradeandassetsfromaunincorporatedbusiness.

Thelumpsumpaymentisfullytaxablein2024/25asitrelatestofutureservicestobeperformed.Lumpsumpaymentis10000plusClass1employerNICwhichis10000+10000*13.8%=11380.Thisiseligbleforaddtional86%deductionasitisqualifyingRDexpenditure,sotax-deductibleamountis11380*186%=21167.

Qualifyingassetsinclude

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Memorandum

Forfiles

Client:

Subject:

Preparedby:

Date:

(a)

Informationrequired

Proofofincorporationandprimarybusinessaddressandregisteredofficeofeachcompanyinthegroup.

Thegroupstructure,directorsandshareholdersofthecompanies.

Theidentitiesofthosepersonsinstructingthefirmonbehalfofcompaniesandthosepersonswhoareauthorisedtodoso.

Actionstotake:

Wemustgiveconsiderationtofundamentalprinciplesofprofessionalethics.Thisrequiresustoconsiderwhethertherearethreatsonbecomingtaxadvisers.

Wemustmakesurethatcompaniesarenotinvolvedinmoneylaundering.

Weshouldotainpermissiontocontactgroup’sexistingtaxadvisersinordertoensurethereisnoethicalthreats.

(b)

Rolloverrelief

Qualifyingassetswhicharelandandbuildingsandfixedplantandmachineryshouldbepurchased.

Newassetsshouldbeboughtinfouryearperiodfrom1yearbeforesaleofassets.

ThereplacementassetsmustbeownedbyUKresidentcompanyforuseorownedbynon-UKresientcompanyandusedtocarryonatradeintheUK.

TheJegcapitalgainsgroupcomprisesJegandallitssubsidaries.ThisisbecauseJegownsatleast75%ofordinarysharecapitalofitssubsidiaries.

Reviewofassetspurchased

Thevanspurchasedarenotqualifyingassetsastheyaremoveableasopposedtobeingfixed.

TheassetspurchasedbyJegwillbequalifiedforrolloverreliefastheyarefixed.

Thebuildingwhichispurchasedon2024/7/1isnotqualifiedforrolloverreliefasitisnon-UKresidentcompanyandbuildingisnotusedtocarryonatradeintheUK.

Operationofrolloverrelief

IftheitemspurchasedbyJegaretheonlyqualifyingassetspurchasedduringthequalifyingperiod,itwillnotbepossibletorolloverthewholeofthechargeablegainonthesaleofKodLtdbusinesspremises.Theamountofproceedsnotinvestedinqualifyingassetsof485000-290000=195000willbecharegedtocorporationtax.

Theamountofproceedsnotinvestedwillbechargedtocorporationtax.Theremaininganountofchargeablegainsonsaleofbusinesspremisesof52000willbedeferreduntiltheearliestoffollowingeventswhicharesaleofmachinery,themachinerynolongerusedfortradepurposesand10yearsafterthedateofpurchaseofmachinery.

(c)

IfcomponentsaresoldbyLisCotoJegLtdataninflatedprice,atransferpricingadjustmentwillberequired.

ThisisbecausethetransactionwillbebetweenJegandacompanywhichitcontrolsandLisCowillberesidentinanon-qualifyingterritorywhichdoesnothaveadoubletaxagreementwithUK,soregimeappliesdespiteJegbeingasmallcompany.

Accordingly,thetradingprofitofJegwillbegaininganadvantageasresultofinflatedprice.

UKresidentcompaniesaresubjecttoUkcorporationtaxontheirworldwideincome.

PuranbusinessisapermanentestablishmentofMotratherthanbeingaseparatelegalentity.ProfitsofbusinesswillbesubjecttoUKcorporationtaxaspartofprofits.

TherateofUKcorporationtaxonPuran’sprofitswillbedeterminedbylevelofMotaugmentedprofitsanditwillbebetween19%and25%.DoubletaxreliefwillbeavailabletosetagainstPurancorporationtax.

ElectiontoexemptprofitsofPEfromUKtax

TheadvantageofmakinganelectionwillbeprofitsmadeinPuranwillnotbesubjecttoUKcorporationtax.

ItshouldberecognisedthatitwillbenolongertoclaimcapitalallowancesintheUKinrespectofassetspurchasedforuseinPuran.

TherewillbenolossreliefforanylossincurredinthePuraninthefuture.

TheelectionisirrevocableanditwillapplytoallPEs.

(d)Valueaddedtax

GroupVATregistration

AcompanycanbeamemberofJegLtdgroupVATregistrationifitiscontrolledbyJeganditisestablisedinUKorithasafixedestablishmentinUK.

Disadvantages

ThememberofagroupVATregistrationarejointlyliableforgroup’sVATliability.

ItwillbenecessarytoobtaininformationfromsubsidiaryinordertoprepareasingleVATreturnwhichmaycauseadministrativedifficulties.

JegwillbeabletousepostponedVATaccounting.ThismeansinputVATatstandardrateonthegoodsimportedwillbeaccountedforonnextVATreturn.

OnthissameVATreturnJegLtdcanreclaimtheinputtaxonimportedcomponents.

JegLtdcoulddelayaccountingforVATbyuseof

(e)

Summaryofsituation

Haleannualpersonalexpenditureexceedshiscashincomeaftertaxwhichis57600-52499=5101.

ThetaxpayablebyHalein2024/25willbeapproximatelyhalfofincomereceivedasthesignificantnon-cashbenefitswhichhereceives.

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(a)

RentaroomreliefisavailableasKesmeandSobaarelettingfurnishedroomsintheirmainresidence.Thelimitforeachofthemis7500/2=3750.

Sincegrossrentalincomeexceedsthelimit,theywillbetaxedundernormalpropertybusinessincomeunlesstheychoosealternativebasis.Iftheyelect,theywilleachbetaxableongrossrentalrecepitsless3750andthereisnoexpensedeductions.

Anelectionforalternativebasisshouldbemadebefore2025/1/31whichis22monthsafterendof2022/23taxyear.Theelectionwillcontinueuntilitiswithdrawn.

(b)

RemittancebasisisavailabletobothUKresidentwhoareneitherdomicilednordeemeddomiciled.

Kesmewillhavelessthan2000overseasincome,soremittancebasisisappliedautomatically.TherewillbenolossofpersonalallowanceandunremittedincomewillnotbesubjecttoUKincometaxandtherewillbenoremittancebasischarge.SoitisbeneficialforKesmeasincomewillnotbesubjecttoincometaxinPenne.

Sobawillhavemorethan2000overseasincome,soremittancebasisisnotappliedautomatically.TherewillbelossofpersonalallowanceandunremittedincomewillbesubjecttoUKincometaxandtherewillbeadditionalremittancebasischargeof60000ifsheisabletoclaimremittancebasis.SoitisbeneficialforKesmeasincomewillnotbesubjecttoincometaxinPenne.ItisnotbeneficialforherasincometaxishigherthanUKtax.

(c)Sobawillreceivetheresidueofestate,

(d)Thereisnolimitonthe100%spouseexemptionavailabletoSobawherebothSobaandKesmearenon-UKdomiciled.

However,ifSobaweredomiciledintheUK,the100%spouseexemptioninrespectoftransfersfromhertoKesmewouldberestrictedtothefirst325000oftotalassetstransferred.

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Theonemonthpaymentinlieuofnoticeof147000/12=12250willbetaxableonJessicaasnormalemploymentincomeandclass1employeeandemployerNICwillbeeligible.

Thestatutoryredundancypayment,thenon-contractualexgratiapaymentandthegiftofthelaptoparealltaxablebutthefirst30000oftheirtotalvalueisexemptandtheexcesswillbetaxable.

Thecashequivalentofthegiftishigherofthemarketvalueat2023/3/31whichis540andthevalueofthelaptopcomputeratthedateitwasfirstprovidedtoherlesstheamounttaxedasbenefit.Itis850-850*20%=680.

Thetotaltaxableamountofpackageis18000+32000+680-30000=20680.

Thepackageistaxedasherincomefor2022/23andclass1ANICwillbepaidbyBerensLtd.

(i)Thetradinglosshasarisenintaxyear2023/24,soitcanberelievedagainsthertotalincomefor2023/24and/or2022/23.Also,asthelosshasariseninoneofthefirstfourtaxyearsinwhichshewillbeapartner,itcanberelievedagainsthertotalincomeofthethreeyearspriortotheyearoflossfromtheearliestyearfirst.

(ii)AsshewilljointheLangleyPartnershipon2023/24,hertradinglossforyearending2024/3/31willbe160000*9/12*40%=48000.

In2023/24,hertotalincomewillberentalincomewhichis6000anditcanbecoveredbyherpersonalallowance,sorelievinglossthisyearwillnotresultintaxsavings.

In2022/23,hertotalincomebeforelossreliefis147000+6000+170+12250+20680=186100.

Assheisanadditionalratetaxpayer,thetradinglosswillgenerateataxsavingof(186100-150000)*45%+(48000-36100)*40%=21005.

Ifshecarriesbacktradinglossto2020/21,itcanberelievedagainsthertotalincomeof147000.Hertotalincomewillbe147000-48000=99000whichislowerthan100000andpersonalallowancewillbeavailable.Sothetaxsavingis12570*40%+48000*40%=24228.

Soitismostbeneficialforhertocarrybacktradinglossagainst2020/21anditwillresultinhighesttaxsavingwhichis24228.

(c)

Themaximumgrosscontributionwhichiseligiblefortaxreliefshecanmakeisthehigherofrelevantearningsand3600.

Asshehasnorelevantearningsin2023/24asitistradinglossandshehasnootherincome.Sothemaximumcontributionshecanmakein2023/24is3600.

In2024/25,shehasrelevantearingsof205000*40%=82000,soshecanmakecontributionof82000whichishigherthanannualallowance.However,shebecomesmemberofregisteredpensionschemein2023/24,soshecanbringunusedallowanceof40000-3600=36400.Thereforetotalcontributionwhihcshecanmakewithoutincurringannualallowancechargeis40000+36400=76400.

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Theone-lumpsuminducementpaymentisfullytaxableasnormalemploymentincomeasitisrelatedtofutureserviceprovidedbyhim.

Thetotalamountreceivedbyhimonrelocationis5000+1500*4=11000.Hedidnotpreviouslylivewithinreasonabledailytravelingdistanceofhisnewemployment,sothemaximumtaxableamountis8000.

Hisqualifyingexpenditurecomprisesallcostsrelatingtohismovewhichareagentfeesof6000andrentfeesof1700*4=6800from2023DecembertoApril2024.Thetotalqualifyingexpenditureis6000+6800=12800whichishigherthan8000,sothetaxableamountonrelocationis11000-8000=3000.

Asthehousewashismainresidence,soprivateresidencereliefwillbeavailableonhisgainfromsaleofhouse.

FromAppendix1,thePRRiscalculatedas71882.

Lettingreliefisrestrictedtothelowestof40000,thePRRof71882andthe22118.Solettingreliefis22118.

PLtdcontributionintooccupationalpensionschemeof220000*10%=22000willbeexemptforDemeter,sonotaxliabilitywillariseonthis.

Thecontributionaffectshisannualallowance.Hisannualallowanceis40000ashisthresholdincomeis220000-40000=180000whichislowerthan200000.

Ashehasnounusedannualallowancetobringforwardashemade