[Priyanka]

Thank You again Sir
?

[Priyanka]

There’s this question from BPP kit

Mary made the following gifts in tax year 17/18:

1) £1,000 on the 1st day of each month for nine months to grandson to pay university living expenses. Mary used income surplus to her living requirements to make theses payments.

2) £100 to her grandnephew on his birthday & further £250 to the same grandnephew as Christmas gift.

Ignoring the annual exemption what is the total value of potentially exempt transfers made by Mary as a result of these gifts?

Answer as per BPP is £350.

Part 1 of this question is assumed to be a normal expenditure out of income,
On which getting confusion.
My answer was £9,350

And one more question, for normal expenditure out of income is there a cash limit?

Thanks to help

[Priyanka]

Ok Sir
Thank You

I thought that the base cost rule could be used instead of the part disposal formula.

[Priyanka]

Hi

>PPR is available on the basis of period of occupation

> Period of occupation includes:

1) Actual occupation: period in which individual physically occupies.

2)Deemed occupation: period during which individual DOES NOT PHYSICALLY OCCUPIES but LAW ASSUMES OCCUPATION.

=//=

Deemed occupation rules are:

a) last 18 months of ownership
b) up to 3yrs for any reason
c) any period during which individual is employed abroad
d) up to 4 yrs during which individual was employed WHITIN UK

* For rule b) to d) :
For absense period to be classified as deemed occupation; there should be period of actual occupation before and after that period of absence.

*However for rule c) and d)
If the individual could not reoccupy his property DUE TO WORK,
then that period of absence is classified as deemed occupation period.

That is; that rule for a period of absence become deemed occupation period if followed and preceded by is not applicable

[Priyanka]

Yea..its oct 2016
Thank you Sir ?

[Priyanka]

ok Thank You

🙂

[Priyanka]

It has not been mentioned in question whether the inv. property is commercial or residential.
Im having issue with the way CGT is being calculated..
I don’t have the answer so not able to cross check mine

[Priyanka]

Hi
Your book is only for exams in Sep 16, Dec 16 & Mar 17

After Mar 16, there will be changes on basic rate limits..tax rates n so on

Regards
Priyanka

[Priyanka]

.

[Priyanka]

Hello Sir,
Could please help me with this question?

Trial Balance
°Warranty provision (CR) – $90000

Add.information:
The year end provision for warranty claims has been estimated at $75000. And warranty costs are charged to administrative expenses.

What amount should I post to the income statement n balance sheet?

Thank You in advance,
Priyanka.

[Priyanka]

Hello,
Can anyone help me with this question?
-“-“-
For the year ended 31 july 2011 Norman made taxable trading profit of $1200000 on which income tax is payable at 30%..
a) A transfer of $20000 will be made to deferred taxation account. The balance on this account was $100000 before making adjustments for items listed in this paragraph.
b) The estimated tax on profits for the year ended 31 July 2010 was $80000, but tax has now agreed at $84000 and fully paid.
c) tax on profits for year 31 July 2011 is payable on 1 may 2011.
Required:
1) tax charged for 1 may 2012
2) tax liability in sfp at 31 july 2011

[Author]

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