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what is the difference and meaning between joint claim relief and not made a joint claim relief for a gift relief
If gift relief is to claimed it must be a joint claim made by both donor and donee
Bill Ding has run a construction company, High Rise Ltd since he purchased the entire shareholding for £112000 in 1999. He has worked for the company since purchase.
Bill has decided to retire and on 17 August 2015 Bill made a gift of his entire holding of High Rise Ltd shares to his daughter, Belle, who also works for the company. The market value of the shares on that date was £260000.
On 17 August 2015 the market value of High Rise Ltd’s chargeable assets was £180000, of which £150000 was in respect of chargeable business assets. Bill and his daughter have elected to hold over the gain of a business asset.
Belle plans to sell the shares in High Rise Ltd on 31 March 2016, when they are expected to be worth £265000 in order to fund a new business venture.
Neither Bill nor Belle has made any previous disposals chargeable to capital gains tax, and both are higher rate taxpayers.Required:
(a) Calculate the gains arising and capital gains tax liabilities for Bill and Belle on the gift of High Rise Ltd shares to Belle and the subsequent sale by Belle.Assume that Bill and Belle make a joint claim for gift relief, and state the due date for this claim.
(b) Recalculate the gains arising and capital gains liabilities for Bill and Belle, assuming a joint claim for gift relief is not made.
(c) Briefly conclude, including a calculation on the tax saving, on which route would be preferable for Bill and Belle.
Please do not waste your time writing out complete questions – if you cannot answer it you clearly have not studied the subject area properly and I keep telling you to work through the OT notes with the lectures and practice examples before you do anything else! If there is then some small part of the answer that you got wrong and do not understand why, then by all means ask me that specific question BUT only after you have gone back to the notes and tried to solve it for yourself!
THERE IS NO NOTES OR EXAMPLES ON JOINT CLAIM FOR GIFT RELIEF AND THIS QUESTION ASK ME TO COMPARE BETWEEN A JOINT CLAIM AND NOT A JOINT CLAIM
Read the question again please – the ONLY claim for gift relief is a joint claim, as I stated in my answer to you! This question is asking you to show the position for the taxpayers with and without a gift relief claim. I assure you the notes and the lectures do show the effect for donor and donee of making a claim for gift relief
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