[Matthew]

Q1 – Tough to get into. Longer period spreads it over two tax years for IT.
Different types of disposal – first is just the building so no ER, second is whole business so ER available. Equipment covered by capital allowances in both cases and balancing charge in income tax.
b) IHT not too bad if identified when taper relief changes.

Q2 – Looks like everyone approached this differently! All companies full rate, can’t relieve one in full by group relief unless defer other loss b/f. So I took the tax planning point to be restrict the WDA to reduce CY loss to just what can be used. As a c/f loss can only be used internally and that co wouldn’t be profitable in the future. One co was only 10 months – noticed someone said only acquired on 31 Dec, missed that bit!

SSE available on the sale of shares if they sell on first date but not on the second. Slight after tax benefit on the second date but not a lot for a possible increase of share price.

Q4 – PPR relief restriction on the tennant.
UK domicile for IHT so that spouse legacy not restricted.
Residue of estate calc straight forward.

Q5 – Cara machine was rolled over gain on a depreciating asset. Therefore the gain rolled over crystalizes rather than reduces new asset base cost. New asset is just a balancing charge as pool balance was nil.
Dividend v bonus not too bad.
VAT flat rate scheme – I explained system but said it wasn’t available due to some exempt supplies, think that was wrong!

Tough paper overall!

[Author]

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