[Victoria]

Q1 – Computation, not too bad, I didn’t spot the dividend until the end so had to go back and correct, think I messed up PBP, but the other benefits were okay.
The child benefit charge, I said was the full £1.7 (or whatever they said) as he earned over £60k. (Took a guess). The pension question at the end, fairly easy.

Q2 – A lot to take in. I left the capital loss in the main company, and transferred the trading loss from company 3 to company 1 as well, as they were paying marginal rate tax – Again, not sure.
The VAT was okay. Company 1, vat payable, Company 2, exempt supplies so no recoverable VAT and company 3, zero rated so VAT recoverable. VAT chargeable to interco’s was chargeable as they were not registered as a group. Didn’t know how to treated the unclaimed VAT payment on the leased photocopier…
I recall a little bit on PAYE too, I mentioned electronic submission, P60’s and P11d’s.

Q3 – Quite a nice CGT question I thought. I did; Warehouse, Disposal less cost, less roof enhancement. Land – find cost using A/A+B method. Shares, used the share pool method, Gifted shares, used MV (after doing quarter up vs average method).
Part b) I had, Warehouse = rollover relief, Shares = Entrepreneurs relief, gifted shares = Gift relief.

Q4 – Not sure if this was really was an easy as I made it or whether I missed the point completely. Not done Self employed NI so took a stab at that part.

Q5 – First was a CLT, I excluded for the purpose of death tax as was longer than 7 years ago, but used to work out how much Nil rate band was remaining on the following PET? Again that was a guess.

The bit about transferring the house immediately, I had that CGT was chargeable on the gain at 28%, and if she didn’t survive 7 years (as it was indicated she wouldn’t) then also IHT at 40% upon her death.
Final question about leaving estate to grandchildren as well as children? Not a clue. I wrote something about habitual expenditure being exempt from IHT.

[Author]

Posts