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Hi,
I would like to add one more.
Where cash basis for small business applies, purchase cost of car, running costs, disposal proceeds are all ignored and AMA is used to claim deduction against trading profits.Regards
Hi,
I had the same doubt regarding this question and therefore sharing what I understood. Please correct me if I am wrong.
The question asks us to assume that today is 15th feb 2020.
The assets might have appreciated from 15th feb 2020 to the first death, but there will be no IHT payable as there will be spouse exemption. The question also states that both Dembe and Kato are to die in the near future. Therefore we can assume that there isn’t much time gap between the first and second death and thus no appreciation between the first and second death.
But on the second death , IHT will be payable if the assets have appreciated from 15th feb 2020 to the first death, which was not payable on the first death because of spouse exemption.
This is what they mean by “Even if IHT were payable (for example, if the value of the estate increases faster than the available nil rate bands)”. They are talking about the appreciation from 15th feb 2020 to the first death.
Therefore, if there is no appreciation between the first and second death, leaving the assets worth 325000 to children after first death and keeping them in the estate till the second death will have the same effect and thus no tax saving.Hi,
The taxpayer can claim to reduce payments on account at any time before 31 January following the tax year. Therefore for the tax year 2020/21, claim has to be made before 31-1-2022.
Please correct me if I am wrong.Hi,
For investors relief to apply, the shares should be subscribed by the person selling it, on or after 17 march 2016 in an unquoted trading company and held for a minimum period of 3 years and the person must not have been an employee or director of the company.If I am right, only the conditions of company being unquoted trading and the individual not being an employee are met.
Hello Sir and Draiells,
Does the wording ” The property has never been occupied by Kendra” have any relevance?
I had the same doubt while doing this question and later assumed that this wording might be the proof to the property being residential.Regards.
Hi,
Is the answer 46,400. If yes:-
Morris retires on 31-1-20 which comes in tax year 2019-20 , therefore his penultimate tax year is 2018/19.
The trading profit for year ended 31-5-19 falls in the tax year 2019-20, therefore it is assessed in 2019-20. Morris’s share in 108000 :- 108000*30% = 32400
He retires on 31-1-20, which is also in the tax year 2019-20. His share :- 120000*8/12*30% =24000.
Therefore his trading profit for 2019/20 will be 32400+24000-10000 = 46400.
Correct me if am wrong.Apple Ltd and Banana Ltd are in a gains group. Therefore, for the purpose of rollover relief they are considered as one company. The proceeds received are 418000 and amount reinvested are only 370000, therefore 48000 has not been reinvested, it becomes chargeable now and the remaining is rolled over.
Therefore Apple Ltd’s chargeable gain is 48000 and it can take up the loss of (8000) of Banana Ltd. Thus net chargeable gain of Apple Ltd is 40000.
