1、P6 高级税务-3 及答案解析(总分：100.00，做题时间：90 分钟)一、论述题(总题数：5，分数：100.00)1.Fedora wants to improve the overall financial position of his family and his company, Smoke Ltd. He is consideringthree possibilities: repaying a loan to the company, employing his wife, Wanda, in the business, and selling a pieceof land o
2、wned by the company.The following information has been obtained from a telephone conversation with Fedora and from client files.Fedora:- Fedoras only income is his annual salary of 80,000 from Smoke Ltd together with annual taxable benefitsof 6,600.- Fedora is aged 49.Smoke Ltd:- Is wholly owned by
3、Fedora.- Manufactures precision engineering tools.- Has a year end of 31 March and pays corporation tax at the small profits rate.Fedoras plans:- Repay an interest-free loan of 18,400 made to him by Smoke Ltd in February 2007.- Smoke Ltd to employ Wanda.- Smoke Ltd to sell part of the land surroundi
4、ng its factory.Smoke Ltd to employ Wanda:- Wanda would carry out duties currently performed by Fedora and would be paid an annual salary of20,000.- Wandas Salary would represent an arms length price for the work that she would perform.- Fedoras salary would be reduced by 20,000 to reflect the reduct
5、ion in the level of his duties.- Wandas only income is bank interest of 1,470 per year. She has notified the bank that she is a non-taxpayer.- Wanda is aged 43.Smoke Lid to sell land:- The land is currently used by Smoke Ltd for parking vehicles.- The land was purchased together with the factory on
6、1 April 1995 for 174,000.- The land would be sold on 1 February 2013 for 22,000.- The value of the factory together with the remaining unsold land on 1 February 2013 will be 491,000.- Smoke Ltd will use 19,000 of the sales proceeds to acquire engineering machinery in March 2013.Required(a) Explain,
7、with the aid of supporting calculations, the tax implications for both Fedora and Smoke Ltd of theproposed repayment by Fedora of the loan from Smoke Ltd. (b) Calculate the annual net effect on the total of the tax liabilities of Fedora, Wanda and Smoke Ltd of SmokeLtd employing Wanda under the arra
8、ngements set out above. (c) Calculate the taxable gain arising on the sale of the land in the year ending 31 March 2013 on theassumption that any beneficial claim available is made. Explain in detail the beneficial claim available, statethe amount of the gain relieved and the manner in which any def
9、erred part of the gain will be charged in thefuture.You should assume that the tax rules and rates for 2011/12 and Financial Year 2011 continue to apply insubsequent years.Note: The following figures from the Retail Prices Index should be used.April 1995 149.0February 2013 240.6 (assumed)（分数：20.00）_
10、2.Ava has not yet submitted her income tax return for the tax year 2011/12. She also requires advice on the capitalgains tax and inheritance tax implications of making a gift of a farm to her nephew.The following information has been obtained from a letter from Ava and from her client file.Avas pers
11、onal circumstances:- Ava is 84 years old.- Avas husband, Butt, died on 1 November 2013 after a long and serious illness.- Ava has no children.Avas income tax reporting:- Burt had always looked after Avas tax affairs as well as his own.- Ava has recently realised that her income tax return for the ta
12、x year 2011/12 has not been submitted.- The notice to file the income tax return for the tax year 2011/12 was sent to Ava on 1 May 2012.Buds will and lifetime gifts:- Burt made no transfers for the purposes of inheritance tax during his lifetime.- Butt left quoted shares worth 293,000 to his sister.
13、- Butt left Hayworth, a small farm, and the residue of his estate to Ava.- Consequently, his chargeable death estate was less than his nil rate band.Avas lifetime gifts:- Ava made a gift of quoted company shares (all minority holdings) worth 251,000 to her niece on 1December 2012.- Ava intends to gi
14、ft Hayworth Farm to her nephew on 1 February 2014.- Capital gains tax gift relief will not be claimed in respect of the intended gift.- Ava is a higher rate taxpayer.Hayworth Farm:- Is situated in the UK.- Was purchased by Burt on 1 January 2004 for 330,000.- Was leased to tenant farmers on 1 Januar
15、y 2005 and was never farmed by Burt.- Will continue to be leased to and farmed by the tenant farmers in the future.Hayworth Farm - Valuations of farm buildings and surrounding land:1 November 2013 1 February 2014 Market value 494,000 650,000Agricultural value 300,000 445,000- It can be assumed that
16、both values will increase by 5% per year from 1 February 2014.Required(a) State by when Avas 2011/12 income tax return should have been submitted and list the consequences ofsubmitting the return, together with Avas outstanding income tax liability, on 15 December 2013.Note: you are not required to
17、prepare calculations for part (a) of this question. (b) (i) Provide a reasoned explanation for the availability or non-availability of agricultural property relief andbusiness property relief in respect of the intended gift of Hayworth Farm by Ava. (ii) Calculate the capital gains tax and the inheri
18、tance tax payable in respect of the gift of Hayworth Farmon the assumption that Ava dies on 1 January 2018. State the due dates for the payment of the taxliabilities (on the assumption that they are not paid in instalments), the date on which any beneficialclaim(s) need to be submitted and any assum
19、ptions made.You should assume that the tax rates and allowances for the tax year 2011/12 will continue to apply for theforeseeable future.（分数：20.00）_3.Crusoe has contacted you following the death of his father, Noland. Crusoe has inherited the whole of his fathers estateand is seeking advice on his
20、fathers capital gains tax position and the payment of inheritance tax following his death.The following information has been extracted from client files and from telephone conversations with Crusoe.Noland - personal information: Divorcee whose only other relatives are his sister, Avril, and two gran
21、dchildren. Died suddenly on 1 October 2012 without having made a will. Under the laws of intestacy, the whole of his estate passes to Crusoe.Noland - income tax and capital gains tax: Sales of quoted shares resulted in: Chargeable gains of 7,100 and allowable losses of 16,800 in the tax year 2012/13
22、. Chargeable gains of approximately 14,000 each tax year from 2005/06 to 2011/12. Noland had taxable income of between 15,000 and 20,000 each tax year.Noland - gifts made during lifetime: On 1 December 2004 Noland gave his house to Crusoe. Crusoe has allowed Noland to continue living in the house an
23、d has charged him rent of 120 per monthsince 1 December 2004. The market rent for the house would be 740 per month. The house was worth 240,000 at the time of the gift and 310,000 on 1 October 2012. On 1 November 2008 Noland transferred quoted shares worth 326,000 to a discretionary trust for theben
24、efit of his grandchildren.Noland - probate values of assets held at death:Portfolio of quoted shares 370,000Shares in Kurb Ltd 38,400Chattels and cash 22,300Domestic liabilities including income tax payable (1,506) It should be assumed that these values will not change for the foreseeable future.Kur
25、b Ltd: Unquoted trading company Noland purchased the shares on 1 December 2010.Crusoe: Long-standing personal tax client of your firm. Married with two young children. Successful investment banker with very high net worth. Has taxable income in excess of 150,000 per tax year Intends to gift the port
26、folio of quoted shares inherited from Noland to his aunt, Avril, who has very littlepersonal wealth.Required(a) Prepare explanatory notes together with relevant supporting calculations in order to quantify the tax reliefpotentially available in respect of Nolands capital losses realised in 2012/13.
27、(b) State the immediate tax implications of the proposed gift of the share portfolio to Avril and identify analternative strategy that would achieve Crusoes objectives whilst avoiding a possible tax liability in thefuture. State any deadline(s) in connection with your proposed strategy. (c) On the a
28、ssumption that the administrators of Nolands estate will sell quoted shares in order to fund theinheritance tax due as a result of his death, calculate the value of the quoted shares that will be available to transferto Avril. You should include brief notes of your treatment of the house and the sha
29、res in Kurb Ltd.Note: you should assume that the tax rates and allowances for the tax year 2011/12 apply throughout this questionapart from the nil rate band for inheritance tax in 2008/09.（分数：20.00）_4.Stanley Beech, a self-employed landscape gardener, intends to transfer his business to Landscape L
30、td, a companyformed for this purpose.The following information has been extracted from client files and from meetings with Stanley.Stanley: Acquired a storage building for 46,000 on 1 July 2002 and began trading. Has no other sources of income. Has capital losses brought forward from 2006/07 of 10,9
31、00.The whole of the business is to be transferred to Landscape Ltd on I September 2012: The market value of the assets to be transferred is 118,000. The assets include the storage building and goodwill, valued at 87,000 and 24,000 respectively, andvarious small pieces of equipment and consumable sto
32、res. Landscape Ltd will issue 5,000 1 ordinary shares as consideration for the transfer.Advice given to Stanley in respect of the sale of the business: No capital gains tax will arise on the transfer of your business to the company. You should take approximately 30% of the payment from Landscape Ltd
33、 in shares with the balance left on aloan account payable to you by the company, such that you can receive a cash payment in the future.Advice given to Stanley in respect of his annual remuneration from Landscape Ltd: The payment of a dividend of 21,000 is more tax efficient than paying a salary bon
34、us of 21,000 as youwill pay income tax at only 25% on the dividend received, whereas you would pay income tax at 40% on asalary bonus. The dividend also avoids the need to pay national insurance contributions. There is no tax in respect of an interest free loan from an employer of less than 5,000. T
35、he provision of a company car is tax neutral as the cost of providing it is deductible in the corporation taxcomputation.Stanleys proposed remuneration package from Landscape Ltd: An annual salary of 40,000 and an annual dividend of approximately 21,000. On 1 December 2012 an interest free loan of 3
36、,600, which he intends to repay in two years time. A company car with list price of 19,000. The only costs incurred by the company in respect of this car will belease rentals of 300 per month and business fuel of 100 per month. The annual employment income benefit in respect of the car is to be take
37、n as 3,420.Landscape Ltd: Will prepare accounts to 31 March each year. Will pay corporation tax at the rate of 20%.Required(a) (i) Explain why there would be no capital gains tax liability on the transfer of Stanleys business toLandscape Ltd in exchange for shares. Calculate the maximum loan account
38、 balance that Stanleycould receive without giving rise to a capital gains tax liability and state the resulting capital gains taxbase cost of the shares. (ii) Explain the benefit to Stanley of taking part of the payment for the sale of his business in the form ofa loan account, which is to be paid o
39、ut in cash at some time in the future. (b) Comment on the accuracy and completeness of the advice received by Stanley in respect of hisremuneration package. Supporting calculations are only required in respect of the company car.Ignore value added tax (VAT) in answering this question.You may assume
40、that the rates and allowances for the financial year to 31 March 2012 and the tax year 2011/12 willcontinue to apply for the foreseeable future.（分数：20.00）_5.Trifles Ltd intends to carry out a purchase of its own shares. The shareholders from whom the shares are to bepurchased require advice on their
41、 tax position. Trifles Ltd also intends to loan a motorcycle to one of theshareholders.The following information has been obtained from the shareholders in Trifles Ltd.Trifles Ltd:- Is an unquoted company specialising in the delivery of small, high value items.- Was incorporated and began trading on
42、 1 February 2005.- Has an issued share capital of 10,000 ordinary shares subscribed for at 2 per share.- Has four unrelated shareholders: Torte, Baklava, Victoria and Melba.- Intends to purchase some of its own shares from Victoria and Melba.- Victoria and Melba have been directors of the company si
43、nce they acquired their shares but will resignimmediately after the purchase of their shares.The purchase by Trifles Lid of its own shares:- Will take place on 28 February 2013 for Victorias shares, and on 31 March 2013 for Melbas shares at anagreed price of 30 per share.- Will consist of the purcha
44、se of all of Victorias shares and 450 shares from Melba.Victoria:- Is resident and ordinarily resident in the UK.- Has taxable income of 40,000 in 2012/13.- Will make no other capital disposals in the tax year 2012/13.- Has a capital loss carried forward as at 5 April 2012 of 3,800.- Will have no li
45、nk with Trifles Ltd following the purchase of her shares.- Inherited her holding of 1,500 ordinary shares on the death of her husband, Brownie, on 1 February 2011.- Brownie paid 16,500 for the shares on 1 February 2009.- The probate value of the 1,500 ordinary shares was 16,000 on 1 February 2011.Me
46、lba:- Is resident and ordinarily resident in the UK.- Has taxable income of 40,000 in 2012/13.- Acquired her holding of 1,700 ordinary shares when Trifles Ltd was incorporated.- Following the purchase of her shares Melbas only link with Trifles Ltd will be her remaining ordinaryshareholding and the
47、use of a motorcycle belonging to the company.The motorcycle:- Will be purchased by Trifles Ltd for 9,000 on 1 April 2013.- Will be made available on loan to Melba for the whole of the tax year 2013/14.- Melba will pay Trifles Ltd 30 per month for the use of the motorcycle.Required(a) Explain whether
48、 or not Victoria and/or Melba satisfy the conditions relating to period of ownership andreduction in level of shareholding such that the amount received from Trifles Ltd on the purchase of ownshares may be treated as capital.(b) Calculate Victorias after tax proceeds from the purchase of her shares:- if the amount received is treated as capital; and- if the amount received is treated as income. (c) Explain, with s
