ACCA/CAT - P6 - 查题吧

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问答题

5 Assume today’s date is 1 May 2005.<br>On 1 April 1999, Alan set up his own company, Alantech Ltd to design and produce technology components in mobile<br>phones. He personally owns 100% of the share capital. Accounts are drawn up to 31 December each year.<br>The company was successful, and the profits made allowed Alantech to buy 7.5% of the ordinary shares in another<br>technology company, Mobile Ltd, on 1 July 2001. The price paid for the shares was ￡75,000. At this time, the<br>remaining ordinary shares in Mobile were held by Boron Ltd (7.5%), Carbon plc (40%) and Diamond Ltd (45%).<br>Technology companies faced difficult trading during this time, and although Alantech Ltd continued to make profits,<br>other companies suffered. This allowed Alantech Ltd to buy 100% of the shares of Boron Ltd (together with its 100%<br>subsidiary, Bubble Ltd) at a low price as both companies were performing poorly. The acquisition took place on 1<br>July 2004, and was funded by the sale of a building used in Alantech Ltd’s trade. The building had cost ￡150,000<br>on 1 September 1999, and was sold for ￡250,000 on 1 May 2004.<br>Trading results for the companies are as follows:<br>Additional information:<br>– Boron Ltd’s chargeable gain took place prior to its acquisition by Alantech Ltd.<br>– Bubble Ltd has brought forward Schedule D Case I losses of ￡25,000 as at 1 January 2004.<br>– It is anticipated that Boron Ltd will make a small Schedule D Case I loss in 2005.<br>– Mobile Ltd is profit making.<br>Alan believes that to improve the Boron Ltd business, the company needs to invest in new high-tech fixed machinery<br>within the next year. The projected cost of the fixed machinery is ￡200,000. In order to raise funds, Alantech Ltd and<br>Boron Ltd will have to sell the shares in Mobile Ltd. From an examination of Boron Ltd’s accounting records, Alan<br>understands that Boron Ltd’s holding of shares in Mobile Ltd was bought on 1 November 2000 for ￡55,000.<br>Alan has identified a possible sale of the group’s entire shareholdings (15%) in Mobile Ltd for ￡300,000 to Carbon<br>plc, as this will give Carbon plc a controlling shareholding in Mobile Ltd. He plans to sell the shares at the beginning<br>of June 2005. Alan has heard that there is a form. of tax relief available to companies selling shares and would like<br>advice on whether or not it applies to his situation.<br>In addition, Alan has struggled to deal with the VAT returns for each company in the group, in particular the intragroup<br>transactions, and wonders if there is any way in which the VAT accounting for the group can be simplified.<br>Required:<br>(a) Calculate the chargeable gain arising on Alantech Ltd’s disposal of the building in May 2004. State clearly<br>any reliefs available, and the conditions to be satisfied to obtain such reliefs. (6 marks)

问答题

1 Today’s date is 8 June 2005.<br>David and Debbie were an elderly couple who had worked hard and over a number of years they built up a successful<br>family company, Dee Limited. Their success allowed them to accumulate a series of investments. David died in May<br>2005. Debbie is 66 and still in good health.<br>The couple had two children, Andrew and Allison. Andrew, aged 37, is single but is shortly to be married. He is the<br>managing director of the family trading company, Dee Limited, which was set up 30 years ago by David and Debbie.<br>Both Andrew and Allison are shareholders in the company, although Allison does not work for the company. She is<br>32, and lives abroad with her husband and two children (aged 2 and 4) in a villa gifted to her by Debbie in June<br>2003. The villa was worth ￡180,000 at that time, but the current value has fallen to ￡110,000 as a result of<br>exchange rate movements.<br>Dee Limited is currently worth ￡1,260,000 in total, and the value is unlikely to change in the foreseeable future. The<br>shareholdings in the company at the date of David’s death (May 2005) were held as follows:<br>Required:<br>(a) Calculate the inheritance tax (IHT) that will be payable as a result of David’s death. Your answer should<br>include calculations of the tax arising on any lifetime transfers and give reasons for any reliefs given.<br>(12 marks)

问答题

5 Gloria Seaford is UK resident and ordinarily resident but is not domiciled in the UK.<br>Gloria has owned and run a shop selling books, cards and small gifts as a sole trader since June 1992. She<br>purchased her current premises, which were built in 1990, in July 2005 for ￡267,000. Gloria is registered for value<br>added tax. Gloria will be 66 on 4 January 2007 and, with this in mind, on 1 November 2006 she started looking<br>for a buyer for the business so that she could retire.<br>Gloria has received an offer of ￡335,000 for the shop premises from Ned Skillet who intends to convert the building<br>into a restaurant. It can be assumed that the sale will take place on 28 February 2007 and that Gloria will cease to<br>trade on that day.<br>Gloria estimates that on 28 February 2007 she will be able to sell the shelving and other shop fittings to local<br>businesses for ￡1,400 (no item will be sold for more than cost). She has agreed to sell all stock on hand on<br>28 February 2007 to a competitor at cost plus 5%. This is expected to result in sales revenue of ￡8,300. The only<br>other business asset is a van that is currently used 85% for business purposes. The van is expected to be worth<br>￡4,700 on 28 February 2007 and Gloria will keep it for her private use.<br>Gloria’s tax adjusted trading profit for the year ended 31 October 2006 was ￡39,245. The forecast tax adjusted<br>trading profit for the period ending 28 February 2007, before taking account of the final sale of the business assets<br>on that date and before deduction of capital allowances, is ￡11,500. Gloria has overlap profits brought forward of<br>￡15,720.<br>The tax written down value on the capital allowance general pool at 31 October 2006 was ￡4,050. Gloria purchased<br>equipment for ￡820 in November 2006. The tax written down value of the van at 31 October 2006 was ￡4,130.<br>In 2006/07 Gloria will have a taxable retirement pension of ￡4,300 and bank interest of ￡13,500 credited to her<br>bank account.<br>On 1 November 2004 Gloria inherited the following assets from her aunt.

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