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Ah I see. So it means that, if the goods were bought in UK, the net effect on the VAT position of the trader would be “£2,000 to reclaim from HM Revenue and Customs”. But here as the goods is imported abroad, the reverse charge is applied; therefore, the net effect on the position is Nil as long as the goods is in the hand of the trader.
Ah, I see what you mean: If it’s mentioned of “chargeable gains”, it means gains of all sold assets. But here it’s only a chargeable gain of one asset.
I see.
So, it means for question 3 “Why calculating business mileage is: 10,000 miles at 45p/mile and 1,000 miles at 25p/mile, without considering the private use of 40%?”, if they use the total miles instead of business miles, we have to consider the business use (60%) in calculating the car expenses (capital – and running expenses) using the flat rate method?
Item 1 and 2 are clear to me. Thanks!
Oh I see. So, it depends on the usability of the building.
Thank you for your advice!Oh I see. I just thought that this exemption is related to the relationship within family.
Now it’s clear. Thank you very much!I am confused why the first question, they used marriage exemption of £5,000, but they did not apply this exemption in the second question. How can it be?
Question 1. Felipe made the following lifetime transfers:
(b) £15,000 to his son on 6 July 2023 as a wedding present.
Calculate the chargeable amount for each of Felipe’s lifetime gifts.Question 2. Amir died on 1 February 2024. During his lifetime, he made two gifts:
2.1. On 30 November 2016 he gave £200,000 to his son
2.2. On 15 June 2017 he gave £350,000 to his daughter
Select the correct chargeable amount of the above gifts (i.e. value before the deduction of the nil rate band) which becomes chargeable as a result of Amir’s death.Thank you.
I understand that there is no personal private use adjustment for companies.
But you wrote “staff costs are allowable expenses for the employer”. Normally, I can understand that staff costs are anything that incurs at work, on business trip and so on, such as office consumables, employee consumables, travel and subsistence etc.
But I do not think staff costs include their private costs such as his private Apple subscription or Netflix subscription, does it?
How can I understand correctly of your definiton of staff costs?Thank you for your reply.
From what you wrote, I can understand that in both cases, private expenses are never allowable, only business-related expenses are.
But why in the text book, it’s said “There are no private use restrictions for companies: any private expenses of a director or employee of a company are fully allowable, when calculating the tax adjusted trading profit.”
How can I understand it correctly? Or is it not correct?
Dear tutor,
so, it means that in the case of donor, the Gross chargeable amount to carry forward should be £473,750, instead of £148,750 as per the Note?
Thank you for your answer.
So, it means that in house benefits are tax free, while marginal costs to deliver those benefits is taxable?