P6高级税务-2及答案解析.doc

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1、P6 高级税务-2 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 following a meeting he has had with Charleston Dance is set outbelow.I attach a memorandum summarising the matters discussed in a meeting I had yesterday with Charleston. I alsoattach a calculati

2、on of the inheritance tax due on his fathers death as prepared by his friend, Lindy. I have not hadthe chance to look at this in detail but I can confirm that the annual exemptions and the taper relief have beenapplied correctly and that there are no arithmetical errors; please review it with care.I

3、 want you to write a letter from me to Charleston covering the following issues.(i) Inheritance tax- Brief explanations of any errors you find when you review Lindys calculation of the inheritance taxdue on Charlestons fathers death and the effect of correcting the errors on the total inheritance ta

4、xdue.(ii) Investments and pensions- The suitability of investing in venture capital trusts and a summary of the tax reliefs available inrespect of such an investment.- The maximum tax allowable pension contributions that can be made by Charleston and Betty and theeffect on this, if any, of purchasin

5、g further rental properties.(iii) Income tax planning- Calculations, with supporting explanations to show that the total tax payable would increase (ratherthan decrease!) if he were to transfer all of the quoted shares and government stocks to a companywholly owned by him. Use the income figures fro

6、m Lindys inheritance tax calculation for thesepurposes and assume that the whole of the new companys post-tax income would be paid as adividend to Charleston.- The income tax advantages of Charleston transferring investments to Betty or their children.- The points that Charleston needs to be aware o

7、f in connection with tax avoidance schemes and thetaxation of the Balboan properties.Thank youThe memorandum prepared by your manager is set out below.To The filesFrom Tax managerDate 29 May 2012Subject Charleston DanceI met Charleston and his wife Betty on 28 May 2012. The couple have two children

8、who are both at university.Charlestons father died on 1 April 2012 leaving Charleston the whole of his estate. Charleston and Bettyimmediately resigned from their jobs and now have no income other than that generated from Charlestonsinherited investments.Charleston agreed to send me a schedule of th

9、e assets he inherited from his father together with a calculation that afriend of his, Lindy, has done of the inheritance tax due. The schedule will also include details of gifts made by hisfather whilst he was alive and the income generated by the inherited investments.Charleston has asked me to co

10、mment on the following ideas.Charlestons investment ideas1 Charleston and Betty intend to make the maximum possible tax allowable personal pension contributions.2 Charleston will sell his fathers home and invest much of the proceeds in further rental property situatedeither in the UK or in the count

11、ry of Balboa, which is not in the European Economic Area (EEA).3 Charleston wants to invest in unquoted trading companies but does not want to invest in enterpriseinvestment scheme shares due to the level of risk involved.Charlestons tax planning ideas1 Lindy has convinced him that he would save inc

12、ome tax if he formed a company and transferred the quotedshares and government stocks inherited from his father into it. Charleston would own the whole of thecompany.2 A London based financial institution has sent Charleston details of a number of tax avoidance schemes thatthey are promoting. Lindy

13、has assured Charleston that there is no need to disclose the income from theBalboan properties to HM Revenue and Customs (HMRC) because the income is taxed in the country ofBalboa.Charleston is concerned about the legality of the tax avoidance schemes and the accuracy of Lindyssuggestion.Our inputI

14、told Charleston that I would suggest an alternative to enterprise investment scheme shares as well as other taxplanning opportunities. I also suggested that it may be possible to increase his tax allowable pension contributionsdepending on the property he buys.Charleston, Betty and the children are

15、resident, ordinarily resident and domiciled in the UK. Charlestons father wasalso resident, ordinarily resident and domiciled in the UK.Tax managerLindys calculation of the inheritance tax due and the income generated by the inherited investments is set outbelow.Inheritance tax computationFathers li

16、fetime gifts 1 November 2002 - Gift of cash to Charleston - more than seven years 200,000prior to death1 July 2005 - Gift of cash to Charleston 370,000Annual exemptions (6,000)364,000Nil band 325,000Gifts in last seven years (200,000 - 6,000 (Two annual exemptions) (194,000)(131,000)233,000Inheritan

17、ce tax at 40% 93,200Taper relief (93,20080%) (74,560)18,640Fathers death estateAnnualincomereceived UK assets:Fathers home 1,300,000UK quoted shares and related dividends 500,000 21,000UK Government stocks and related interest 600,000 27,000Bank accounts and related interest, furniture 410,000 8,000

18、and paintingsCars 34,000Investment properties in the country of Balboa and 800,000 72,000related rental incomeLess: Balboan inheritance tax (160,000)640,000Chargeable estate 3,484,000Inheritance tax at 40% (no nil band available) 1,393,600Total tax due (18,640 + 1,393,600) 1,412,240RequiredPrepare t

19、he letter requested in the e-mail from your manager. Marks are available for the three sections of the letteras follows:(i) Inheritance tax; (ii) Investments and pensions; (iii) Income tax planning. Professional marks will be awarded for the appropriateness of the format and presentation of the lett

20、er and theeffectiveness with which the information is communicated. Assume that the tax rules and rates for 2011/12 continue to apply in subsequent years.（分数：20.00）_2.Sakura requires advice on the receipt of insurance proceeds, the sale of a painting in exchange for a boat and theimplications of mak

21、ing an error when preparing his tax return.The following information has been obtained from a telephone conversation with Sakura.Sakura:- Is a higher rate taxpayer who is resident, ordinarily resident and domiciled in the UK.- Is finalising his tax return for the tax year 2011/12.- Has not previousl

22、y made any gifts or disposals for the purposes of capital gains tax or inheritance tax otherthan those set out below.- Does not expect to make any gifts or disposals for the purposes of capital gains tax or inheritance tax in thetax years 2012/13 or 2013/14 other than those set out below.- Has recei

23、ved insurance proceeds of 67,000.- Intends to sell a painting to his son, Cashel, in exchange for a boat.The insurance proceeds of 67,000:- The insurance proceeds were paid to Sakura on 1 June 2012.- The insurance proceeds relate to the destruction of an antique china figurine on 1 March 2012.- Saku

24、ra paid 28,000 for the figurine on 1 April 2008.- The figurine had a market value of 80,000 on 1 March 2012.- Sakura intends to use the money to purchase a modern glass figurine for 59,000.Exchange of painting for boat:- Sakura intends to sell a painting with a market value of 48,000 to his son, Cas

25、hel.- The consideration for the sale will be a boat owned by Cashel that has a market value of 25,000.- The painting and the boat cost 22,000 and 37,000 respectively.Sakuras tax return:- Sakura always prepares his tax returns in an honest manner.- However, he is aware that he could still make an hon

26、est mistake.Required(a) - Explain, with supporting calculations where necessary, the capital gains tax and inheritance taximplications for Sakura of the receipt of the insurance proceeds and the sale of the painting inexchange for the boat.- Advise Sakura of the actions he should take in relation to

27、 his plans in order to minimise his capitalgains tax liability and point out any matter(s) that would need to be resolved with HM Revenue andCustoms.Note: you should clearly identify the tax years relevant to the disposals and the due date of payment of anyminimised capital gains tax liability. (b)

28、State, with reasons, whether there will be any capital gains tax and/or inheritance tax implications for Cashelfrom the disposal of the boat. (c) Explain the manner in which a penalty would be calculated if Sakura were to make an honest mistake whencompleting his tax return. You should assume that t

29、he tax rates and allowances of the tax year 2011/12 will continue to apply for theforeseeable future.（分数：20.00）_3.Fitzgerald and Morrison, two clients of your firm, require advice on the capital gains tax and inheritance taximplications of gifts they propose to make in the next few months.Fitzgerald

30、Gift of shares in Jay Ltd on 1 October 2012:- To be made to Fitzgeralds nephew, Pat.- Comprises the whole of Fitzgeralds 9% shareholding.- Fitzgerald inherited the shares from his mother on 1 February 2012 when their market value was 32,000.- The shares are expected to be worth 127,500 on 1 October

31、2012.- Both Fitzgerald and Pat are higher rate taxpayers.Jay Ltd- An unquoted manufacturing company.- Values of the companys assets as at 1 October 2012Premises 740,000Plant and machinery (each item is worth more than 6,000) 160,000Quoted company shares 250,000Motor cars 30,000Net current assets 80,

32、000Pats plans:- Pat is an employee of Jay Ltd and will continue to work for the company until he sells the shares.- Pat intends to sell the shares in January 2014 and expects to receive 170,000.- He will use the funds to finance a business venture.MorrisonGift of a painting on I September 2012:- To

33、be made to Morrisons daughter, Sula, on her wedding day.- This will be Morrisons first gift since 1 May 2005.- The painting is one of a set of three.- Each of the individual paintings is expected to be worth 25,000 on 1 September 2012; a pair of paintings isexpected to be worth 70,000 on that date.T

34、he set of paintings:- Morrison purchased the set of three paintings in April 2004.- Each of the paintings has a base cost for capital gains tax purposes of 8,300.- He gave one of the paintings to his wife on 1 May 2005.- The complete set of three paintings is expected to be worth 120,000 on 1 Septem

35、ber 2012.Required(a) In respect of the gift of the shares by Fitzgerald and their subsequent sale by Pat:(i) Explain whether or not capital gains tax gift relief will be available on the gift, noting any additionalinformation required. State the latest date for submission of a claim and identify who

36、 must sign it;(ii) Calculate the effect of submitting a valid claim for gift relief on the total capital gains tax liability ofFitzgerald and Pat on the assumption that the gift by Fitzgerald and the sale by Pat take place as(iii) Explain whether or not business property relief will be available if

37、Fitzgerald dies within seven yearsof making the gift. (b) In respect of the gift of the painting by Morrison:(i) Calculate the value of the potentially exempt transfer, after deduction of all exemptions, for thepurposes of inheritance tax; (ii) Calculate the capital gain arising on the gift and comm

38、ent on the availability of gift relief.Assume that the tax rules and rates for 2011/12 continue to apply in subsequent years.（分数：20.00）_4.Your manager has had a meeting with Fred Kildow, the finance director of Miller plc, and has sent you a copy of thefollowing memorandum.To The filesFrom Tax manag

39、erDate 1 June 2012Subject Miller PIcTo simplify the group finance function Fred Kildow has moved all companies in the group to the same accountingyear end. Miller plcs accounting date during 2012 has therefore changed from 31 July to 31 March.1 August2011 to 31 March 2012The income statement for the

40、 period from 1 August 2011 to 31 March 2012 shows a profit of 450,000 afteraccounting for the following items:Loss on disposal of machinery (Note 1) 30,000Gift Aid donation accrued (paid 1 April 2012) 10,000UK rental income 45,000Advertising (Note 2) 60,000Interest charged on overdue corporation tax

41、 3,000Dividend income (Note 3) 75,000Debenture interest receivable (Note 3) 9,000Note 1The machinery had been used in the business and capital allowances had been claimed. It had originally cost86,000 in January 2001 and was sold for 62,800 in October 2011. At the time of purchase, installation cost

42、s of10,000 were charged in addition to the purchase price.Note 2The advertising included 37,750 for the hire of a corporate entertainment box at a sporting event. The cost was forthe hire of the box and all food and drink. During the event, Miller plc displayed its corporate logo in the window ofthe

43、 box.Note3In September 2011, Miller plc received a dividend of 13,500 from Bode Ltd, 27,000 from Hillman Ltd and34,500 from Vogtli Inc. The dividend from Vogtli Inc was received gross as it was not subject to any withholdingtax. Miller plc also received interest of 9,000 on a debenture loan to Bode

44、Ltd.Items not included in the income statementMiller plc incurred general expenses of 11,550 from the management of its various investments.Miller plc sold its entire holding in Vogtli Inc for 120,000 on 31 January 2012.Capital acquisitionsMiller plc purchased a Mercedes car on 1 August 2011 for 28,

45、000 which had CO 2 emissions of 180g per kin. TheMercedes car was purchased for one of the directors with estimated private usage of 25%. On 1 September 2011Miller plc also purchased a Jaguar car for 30,000 which had CO 2 emissions of lOOg per km and new officefurniture at a cost of 83,417. The annu

46、al investment allowance for the group is to be claimed by Miller plc.Forecast group results - year ended 31 March 2013Fred Kildow will be sending a copy of the groups forecast results for the year ended 31 March 2013.He advised that Bloom Ltd is likely to break even in 2014. From 2015 onwards Bloom

47、Ltd expects to reach tradingprofit levels of at least 500,000 per annum.The other group companies do not expect their income levels to change.The capital loss shown for Weinbrecht Ltd arose on the sale of an office building in November 2012 to a non-associated company.Tax managerAn extract from an e

48、mail from your manager is set out below.Please prepare a report to Fred Kildow setting out the following:1 Corporation tax liabilityProvide a calculation of Miller plcs corporation tax liability for the period ended 31 March 2012.I have calculated the indexed rise on the holding in Vogtli Inc from March 2001 to January 2012 to be 9,725.2 Group issuesState, with reasons, the nature of the relationships that exist between the various companies for corporationtax purposes in the year ending 31 March 2013.On the basis that Fred Kildow wants to minimise the