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According to the information you have provided, SBAs would be available on the cost of the ‘repairs’ in both scenarios.
In future, instead of posting the question and expecting me to provide the answer, tell me what your uncertainty is over the answer that is provided but only after you’ve referred to your study materials and tried to find the answer yourself.
Answer 3 is too vague. ‘A good track record’ is not good enough. The conditions are that the schemes cannot be joined if the person/company is not up to date with its VAT returns and/or payments, and/or the person/company has committed a VAT offence in the last 12 months, for example VAT evasion.
I am happy to answer any questions on areas on which you are unsure, but I am not here to do your homework. Why are you attempting a question for which you do not have the answer? You should be using a revision kit from one of the ACCA approved publishers.
Exemptions are based on the RECIPIENT (donee).
Husband gives asset to wife = exempt
Wife gives asset to husband = exempt
Husband leaves asset to wife on his death = exempt
This is all because the transfers are between SPOUSES.
Wife gives asset to son OR dies and leaves asset to son = NOT EXEMPT as this is not a transfer between SPOUSES. It doesn’t matter HOW the wife acquired it.
I hope this is a simple enough explanation.
No, that’s not how it works.
All assets owned at the date of death, whether inherited from someone else (as an exempt legacy or otherwise) are included in the death estate.
There are two formulas that can be used, but the one that you quoted is the easier of the two.
also for the above qtn i mentioned instaed if the property of 970k is transfred to his children before death is any cgt payable? if so how and y? like im not understandng y will cgt arise if a gift is made
As it’s a gift, market value is used as proceeds and as the full gain will not qualify for PRR there there is an amount left chargeable.
this is another iht qtn.
Kendra owns the following assets:A property valued at £970,000. The property is no longer occupied by Kendra, but would qualify for the residence nil rate band. If it were disposed of during the tax year 2024-25 the disposal would result in a chargeable gain of £174,000. Kendra has made other disposals in the year utilising the annual exempt amount.
Building society deposits of £443,000.
A life assurance policy on her own life. The policy has an open market value of £210,000, and proceeds of £225,000 will be received following Kendra’s death.
None of the above valuations are expected to change in the near future. The cost of Kendra’s funeral will be £14,000.Under the terms of her will, Kendra has left her entire estate to her children.
The nil rate band of Kendra’s husband was fully utilised when he died ten years ago.
The nil rate band for the tax years 2009–10 onwards is £325,000.
the qtn is how much is chargeable estate
i deducted 175k for rnrb as it said t qualifies . but in the solution they havent . y so. also here they mentioned husband’s nrb is utilised , then does that indicate that his rnrb is still left so we can use is rnrb?
THE CHARGEABLE ESTATE IS THE AMOUNT AFTER EXEMPTIONS BUT BEFORE DEDUCTING ANY RNRB OR NRB.
I am sure that I have been through this with you before on one of your previous questions.
As the question specifically states that the husband’s NRB was fully utilised, but it doesn’t specifically mention the RNRB, you can assume that it’s available
Think it through…
£5,000 gift by a parent.
So the bride’s parents can give £5,000 each and the groom’s parents can give £5,000 each (total of up to £20,000 from the parents of the couple getting married).
Allowances, where apportioned, are only ever apportioned according to the LENGTH OF THE ACCOUNTING PERIOD, not the length of time the asset has been owned.
You do not get to CHOOSE where to allocate the AE – if both this years’ and last years’ are available then they must be applied to the PET as it is the earliest gift in the tax year.
The gift to the nephew was in 2018, the gifts to the children were in 2022, so the NRB would be available in full for the 2018 gift as it was made earlier.
Think it through…
A long period of account is split into TWO chargeable accounting periods.
TWO separate computations
TWO separate tax returns
TWO different payment dates (so for one period the tax could be paid in instalments and for the other period the tax could be paid 9 months and 1 day after the end of the period – it all depends on the level of augmented profits in EACH period)The RNRB is an extra amount of the death estate taxed at 0%, it is not deducted against the value of the property.
So if the death estate is valued at £800,000 with the full RNRB and NRB available, then the IHT would effectively be:
£175,000 (RNRB) x 0%
£325,000 (NRB) x 0%
£300,000 x 40% = £120,000Total £800,000, but some taxed at 0% and some taxed at 40%.
It’s two years for a group loss relief claim, but four years for a rollover relief claim.
another qtn of vat, when the supplier is supplying is zero rated goods, shld he issue an invoice? like the rate charged is still 0% right, so shld we issue?
Yes, an invoice is still issued.
another doubt is for impairment relief we check 6 months from invoice date or payment due date when both r given in qtn?
Six months from the later of the payment due date or the supply date.
this is a qtn from kaplan
the following are vat inclusive costs of this in quarter are as follows:
uk customers-250
uk suppliers-100
overseas customer-775
overseas supplier-650
how much input vat is claimable?I am going to assume that the costs relate to entertaining – could you please be clearer in future questions?
Input VAT can be reclaimed on entertaining cost which relate to staff and overseas customers/suppliers.
Included in the death estate:
– the share of the racehorse (is the SHARE valued at £150,000, or is the RACEHORSE valued at £150,000)?
– the cash of £40,000
– the main residence less the mortgage, so £(875,000 – 500,000) = £375,000
So none of the options fit, as depending on the racehorse, the answer is either £(150,000 + 40,000 + 375,000) = £565,000 or £150,000 x 50% = £75,000, plus £40,000, plus £375,000 = £490,000.
see from my prevoius doubsts based on iht u’ve told me that any specific legacies r tax free. so that makes them deductible from the calculation of death estate rigth just like how we deduct exempt spouse legacy from death estate.
No, they are still included in the death estate. ‘Tax free’ simply means that the person receiving the asset does not pay the tax, the tax is paid by the executors and effectively suffered by the residual legatee as previously explained.
suppose the death estate is 210k, 40k is specific legacy to my brother and residue is to my husband, and there is already a pet at time of death that uses up nrb pet after all exemptions provided being 80k. how much is the nrb unused the this person’s death?
my qtn is if spouse transfer is exempt then r specific transfer also exempt just like that? like do we d 210-40-residue amt given to husband. so the only nrb used is pet 80k s remaining nrb being 325-80=245?The death estate INCLUDES the specific legacy (as explained above, it is NOT exempt). If the death estate is £210,000 and the nil rate band is £(325,000 – 80,000) = £245,000, then the specific legacy uses £40,000 of this and the rest of the estate is covered by the spouse exemption. The unused NRB is therefore £(245,000 – 40,000) =£205,000
The answer is (b) as the other three are events that trigger a gain, which has been deferred against the acquisition of fixed P&M, becoming chargeable.
Generally, yes, but if there’s no VAT invoice for whatever reason, businesses may still be able to reclaim input VAT based on alternative evidence which shows that the VAT was due and charged by the supplier and paid by the claimant, but this would be at HMRC’s discretion.
