P6高级税务-1及答案解析.doc

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1、P6 高级税务-1 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.An extract from an e-mail from your manager regarding a meeting with a client, Sushi, together with an e-mail fromSushi are set out below.E-mail from your managerI have just had a meeting with Sushi who has been a client of the firm since

2、she moved to the UK from the countryof Zakuskia in May 1998. Sushi is 57 years old and was born in the country of Zakuskia. Her father died in 2005and, as you will see from her e-mail, her mother died in October 2012. Her father and mother were both domiciledand resident in the country of Zakuskia t

3、hroughout their lives. Zakuskian inheritance tax is charged at the rate of24% on all land and buildings situated within the country that are owned by an individual at the time of death. Thereis no capital gains tax in the country of Zakuskia. There is no double tax treaty between the UK and the coun

4、try ofZakuskia.Until the death of her mother, Sushis only assets consisted of her house in the UK, a number of investmentproperties also situated in the UK, and cash in UK bank accounts. Her total UK assets are worth approximately 3million. Sushi has taxable income of 40,000 each year and realises t

5、axable capital gains of more than 20,000each year. She has made significant cash gifts to her son in the past and, therefore, does not require an explanationof the taxation of potentially exempt transfers or the accumulation principle. Sushi is resident and ordinarilyresident in the UK.I want you to

6、 write a letter to Sushi addressing the points below:(i) UK inheritance tax and the statueAn explanation of:- The UK inheritance tax implications of the death of Sushis mother.- Which of Sushis assets will be subject to UK inheritance tax when she dies. This will require somecareful and detailed con

7、sideration of her domicile position both now and in the future.- The manner in which UK inheritance tax would be calculated, if due, on any land and buildingssituated in the country of Zakuskia that are owned by Sushi when she dies.- Why the gift of the statue to her son, as referred to in her e-mai

8、l, will be a potentially exempt transfer,and how this treatment could be avoided.The statue has not increased in value since the death of Sushis mother. Accordingly, the proposed gift ofthe statue to Sushis son will not give rise to a capital gain.(ii) The Zakuskian incomeThe Zakuskian income will b

9、e subject to tax in the UK because Sushi is UK resident. Accordingly, we need tothink about whether or not Sushi should claim the remittance basis, In order to do this I want you to preparecalculations of the increase in her UK tax liability due to the Zakuskian income on the assumption that theremi

10、ttance basis is not available and then on the assumption that it is available. You should assume thatSushi remits 30,000 (gross) to the UK each year in accordance with her plans.In relation to the taxation of the Zakuskian income, the letter should include explanations of the meaning ofthe terms rem

11、ittance basis and remittance, and whether or not the remittance basis is available to Sushi,together with your conclusions based on your calculations but no other narrative. You should include brieffootnotes to your calculations where necessary to aid understanding of the figures.There is no need to

12、 consider the implication of capital gains on overseas assets as Sushi does not intend todispose of any of her Zakuskian assets, apart from the statue, for the time being.Thank youTax managerE-mail from SushiMy mother died on 1 October 2012 and left me the whole of her estate. I inherited the follow

13、ing assets.The family home in the country of ZakuskiaInvestment properties in the country of ZakuskiaCash in Zakuskian bank accountsPaintings and other works of art in the country of ZakuskiaThe works of art include a statue that has been owned by my family for many years. I intend to bring the stat

14、ue tothe UK in December 2012 and give itto my son on his birthday on 1 July 2013. The statue was valued recently at390,000.The assets inherited from my mother will generate gross annual income of up to 60,000 before tax, all of which issubject to 10% Zakuskian income tax. I intend to bring half of t

15、his income into the UK each year. The balance willremain in a bank account in Zakuskia.I would like to meet with you to discuss these matters.Thank you for your help.SushiRequiredPrepare the letter to Sushi requested in the e-mail from your manager. The following marks are available.(i) UK inheritan

16、ce tax and the statue;(ii) The Zakuskian incomeProfessional marks will be awarded in this question for the appropriateness of the format of the letter, the degree towhich the calculations are approached in a logical manner, and the effectiveness with which the information iscommunicated. You should

17、assume that the tax rates and allowances of the tax year 2011/12 will continue to apply for theforeseeable future.（分数：20.00）_2.An extract from an e-mail from your manager detailing two tasks for you to perform is set out below.(a) You will find a letter on your desk from a new client, Grifter, who i

18、s a self-employed information technologyconsultant. I need you to write a memorandum for the files addressing the matters regarding Grifter set outbelow. You should include a brief explanation of any tax liabilities that can be deferred but, other than this,keep any narrative to a minimum unless I h

19、ave specifically asked for it.(i) Property in the country of ShadowsiaCalculate the income tax on the rental income in respect of the property in Shadowsia on the basisthat Grifter is a higher rate taxpayer for all of the relevant years. Grifter has asked us to assume thatthere will be interest and

20、penalties payable equal to 100% of the tax due. There is no double tax treatybetween the UK and the country of Shadowsia.Unfortunately, Grifters uncle died in November of this year so you will need to include a calculation ofGrifters inheritance tax liability, after any available reliefs, on the gif

21、t of the property. Grifter hasinformed me that his uncle was domiciled in the UK and that, due to gifts made in February 2007,there is no annual exemption or nil rate band available in respect of the gift. There was no inheritancetax liability in Shadowsia in respect of the property.You should also

22、include your assessment of Grifters view of the tax repayment he has received.(ii) Reduction in mortgageCalculate the amount by which Grifter could reduce his mortgage if he were to sell the cars. This willbe the after tax proceeds from the sale of the cars less any amounts due under (i) above.Pleas

23、e include a detailed explanation of your tax treatment of the sale of the cars based on ourknowledge of Grifters circumstances. I understand from Grifter that he has not previously sold anycars from his collection.Calculate the maximum price that Grifter could pay for a new house if he were to sell

24、his existinghouse. Assume that his existing house will be sold on 28 February 2013 for 1,200,000 and that therewill be professional fees of 6,400.In calculating the amount available to buy a new house you should assume that Grifter will reduce hismortgage by the same amount as the figure you have co

25、mputed in respect of the sale of the cars andthat there will be professional fees in respect of the purchase of the new house of 4,000.When carrying out these calculations you should assume that Grifters capital gains tax annual exemptamount is not available and that he is a higher rate taxpayer.(b)

26、 I want you to write a briefing note on the remittance basis of taxation for individuals in respect of bothinvestment income and capital gains The note will be sent to all of our staff to provide them with asummary of the basic rules so that they will know when there is a need to consider the matter

27、 in moredetail. I suggest you use the following headings:- Who is entitled to be taxed on the remittance basis?- Is a claim required?- How does the remittance basis affect an individuals UK tax liability?ThanksBobThe letter from Grifter is set out below.1 Dark LaneLondonMr B MitchumM (ii) Reduction

28、in mortgage. Professional marks will be added in part (a) for the appropriateness of the format and presentation of thememorandum and the effectiveness with which the information is communicated. (b) Prepare the briefing note on the remittance basis of taxation for individuals are requested by your

29、managerin his e-mail.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.Capstan requires advice on the transfer of a property to a trust, the sale of shares in respect of which relief has beenreceived under the E

30、nterprise Investment Scheme (EIS), and the sale of shares and qualifying corporate bondsfollowing 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 tr

31、ust 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

32、 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 pr

33、operty 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 relie

34、ve 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

35、 August 2012.Capstans 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

36、and was not for the avoidance of tax.- Capstan received 8,000 Pinblock plc non-convertible loan stock (a qualifying corporate bond) and 20,000ordinary 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 Octo

37、ber 2008.Required:(a) Set out, together with supporting calculations, the inheritance tax and capital gains tax implications of thetransfer 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

38、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 Capstans taxable capital gains for the tax year 2012/13.Note: in parts (a) and (b) you should clearly state any assumptions you have made t

39、ogether with anyadditional 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 theforeseeable future.（分数：20.00）_4.Ernest intends to sell a capital asset on 1

40、 February 2013 and wishes to maximise his after tax sales proceeds He isalso seeking advice on his inheritance tax position and on his will.The following information has been obtained from a telephone conversation with Ernest and from client files.Ernest:- Is 54 years old and unmarried.- Lives with

41、Georgina, who is 48 years old, and her adult daughter, Eileen.- Earns a salary of 130,000 per year.- Has as yet made no disposals of capital assets in the tax year 2012/13.- Intends to sell either an oil painting or 7,700 shares in Neutron Ltd on 1 February 2013Oil painting:- Ernest inherited the pa

42、inting on the death of his uncle on 1 May 2007 when it was worth 23,300.- Ernests uncle purchased the painting on 1 July 1993 for 19,500.- The painting is expected to be worth 47,000 on 1 February 2013.Shares in Neutron Ltd:- Qualified for income tax relief under the enterprise investment scheme (EI

43、S) although Ernest did not claimany relief.- 1 April 2004 Ernest subscribed for 18,600 shares at 8.90 per share.- 1 March 2006 Ernest received a 1 for 4 bonus issue.- 1 July 2009 Ernest purchased his full entitlement under a 1 for 10 rights issue at 4.20 per share.- The shares are expected to be wor

44、th 5 each on 1 February 2013.Neutron Lid:- Has an issued share capital of two million 1 ordinary shares.- Is not quoted on any stock exchange.- Manufactures and distributes radiation measuring equipment.Inheritance tax planning and wills:- Neither Ernest nor Georgina have made any lifetime gifts.- I

45、n his will, Ernest has left the whole of his estate to Georgina.- In her will, Georgina has left the whole of her estate to Eileen.- Ernest and Georgina wish to minimise their total inheritance tax liability.- They are willing to make lifetime gifts to each other but not to Eileen or any other perso

46、n or organisation.Current market values of assets owned:Ernest Georgina Family home 620,000 -Antiques and works of art 400,000 60,000Investment property 380,000 -Shares in Neutron Ltd 127,875 -Required(a) Prepare calculations of the after tax sales proceeds that would be realised on the proposed sal

47、e of thepainting and on the proposed sale of the shares on 1 February 2013.Note: you should assume that Ernest will make any necessary beneficial claims or elections. (b) Prepare brief notes explaining the inheritance tax liabilities that will arise on the deaths of Ernest andGeorgina if no action i

48、s taken to reduce such liabilities; identify any actions that could be taken in order toreduce these liabilities and explain the inheritance tax and capital gains tax implications of these actions.Note: you are not required to prepare calculations for part (b) of this question. Assume that the tax rules and rates for 2011/12 continue to apply in subsequent years.（分数：20.00）_5.An extract from an e-mail from your manager is set out below.I attach a letter from Frank Coltrane who is about to