Tax Ek Prem Katha

Jason
(a) advantage:
employees will not have any unexpected tax liabilities in respect of the taxable benefits that have been payrolled
disadvantage:
tax would generally be due under PAYE
(b) initial plc
employment income
£
salary 180000
less: occup -8000
bonus 24000
staff cante 0
employmen 196000
Subsequent plc
employment income
£
salary 205000
less: occupational pension
car 8750
living acc 3000
beneficial 1867
employmen 218617
working
living accomodation
basic 1600
additional 1400
3000
Jason will have to pay 10178 more in income tax if he takes the offer to work with subsequent plc
if jason took the offer from subsequent plc then he would have to pay 6128 more income tax liability
fits that have been payrolled
POPPY
(a)
£
employmen 68584
savings in 300
68884
less: -9350
59534
less: PA -12570
taxable in 46964
employment income
£
salary 65000
car 3488
mobile ph 96
employmen 68584
partnership
TATL -19500
balancing -900
-20400
profit share
1st 1700
2nd 7650
9350
government gilts
300
(b) because poppy's tax is payrolled then all the tax would be collected through PAYE
KIONI
company pension scheme
(a) the income tax liability would be the same because the occupational pension is an exempt benefit
(b) class 1 NIC would be the same both for kioni and nikio Ltd
(c) revised corporation tax liability would be of 15200
personal pension scheme
£ rate band extension

director's 67500 57700
dividend i 68000
135500
personal a -4820
130680
£
NSI-BRB 37700 20% 7540
NSI-HRB 20000 20% 4000
4980 40% 1992
dividends 0 0
dividends- 66000 33.75% 22275
income tax liability 35807
2 67500
£
37700 13.25% 4995.25
17230 3.25% 559.975
5555
3 employer class 1
3010
8789
4 76990 19% 14628.1 corporation tax liability

empt benefit
Kagan
(a) revised income tax liability
income tax 165000

£
dividend i 13300 39.35% 5234
revised inc 170234
(b)
(i) the base cost would be 510000 and the excess amount would be covered in the annual exempt amount of 12300
(ii)
non savings income dividend income total
£ £ £
employmen 400000 400000
property i 9600 9600
dividends 1950 1950
409600 1950 411550

less: PA 0 0
taxable in 409600 1950 411550
income tax liability

£
NSI-BRB 137700 20% 27540
NSI-HRB 112300 40% 44920
NSI-additio 159600 45% 71820
dividends 1950 0% 0
income tax liability if he makes 144280
(c)
al exempt amount of 12300
rate band extension

137700
paul and palu Ltd
business is run as a limited company
£
TATP 175000
direcotrs -8000
167000
corporation 31730
paul's income tax liability
non savings income dividends total

£ £ £
dividends 135270 135270
8000 135270 143270

less: PA 0 0

£
NSI-BRB 8000 20% 1600
dividends 2000 0% 0
dividends- 27700 8.75% 2424
dividends- 105570 33.75% 35630
income tax 39654
no NIC would be calculated because the amount is 8000
if paul runs business as a sole trader
£
taxable pro 175000
less: PA 0
175000
£
NSI-BRB 37700 20% 7540
NSI-HRB 112300 40% 44920
NSI-additio 25000 45% 11250
income tax 63710

class 2 164
class 4 £
37700 10.25% 3864
124730 3.25% 4054
7918
Robinette
(a)
non savings income
£
self emplo 75350
employmen 68660
self emplo 11800
property i 6288
162098
less: PA 0
taxable in 162098
working
self employment 30th june 2022
£
TATP 106900
less: balan 8850
less: overl 22700
self emplo 75350
employment 1 aug 2022
£
salary 63600
rent paid 4140
running co 1440
workplace 0
car -520
employmen 68660
self employment 1 feb 2023
£
TATP 55700
less: capit -26200
self emplo 29500

in 2022/23 11800
property income
£
rent 6600
insurance -312
property i 6288
(b)
(i) HMRC should give a compliance check notice within 12 months from the date at which they received the tax return
(ii) as robinette has a business so she need to maintain the records for five years
h they received the tax return 14th august 2024
Patience
non savings income

£
employmen 32265
self emplo 16100
pension in 10750
property bu 3500
62615
less: PA -12570
taxable in 50045

£
NSI-BRB 42200 20% 8440
NSI-HRB 7845 40% 3138
income tax 11578
workings
employment income
£
salary 33750
pension co -2025
31725
school-mar 540
long servi 0
loan 0
employmen 32265
self employment
£
trading pro 14800
last 5 mon 6900
balancing -1900
19800
less: overl -3700
16100
personal pension
4500
rate band 42200
pension income
10750
property
£
rent receiv 10800
expenditur -7300
property bu 3500
capital gains tax liability
property 1
£
sales proc 122000
less: purch -81400
40600
property 2
£
sales proc 98000
less: purch -103700
-5700
net gains 34900

less: AEA -12300
22600
CGT 6328
DILL
(b)
employment income
£
salary 290000
less: occup -14000
bonus 45500
company g 0
home enter 1180
workplace 0
beneficial 1333
health clu 990
milage all -1625
323378
premium b 0
NSI certific 0
total inco 323378

less: loss re -58000
265378
less: PA 0
taxable in 265378
working
mileage allowance
by HMRC
10000 0.45 4500
4500 0.25 1125
5625
by employer
4000
allowable deduction 1625

Richard Tryer
non savings income savings income dividends

£ £ £
employment income 68738
property income 7375
building society interest 1260
dividends 5800
76113 1260 5800

less: PA -12570
taxable income 63543 1260 5800

£
NSI-BRB 37700 20% 7540
NSI-HRB 25843 40% 10337
savings income starting rate band 500 0% 0
S-HRB 760 40% 304
dividends starting rate band 2000 0% 0
dividends-HRB 3800 33.75% 1283

less: PAYE -19130
workings income tax payable 334

employment income
£
salary 41030
car benefits 3454
fuel benefits 4934
living accomodation 13200
furniture 2420
running cost 3700
employment income 68738
property income
premium 5040
rent 3320
8360
roof replacement -84
ceiling repairs -400
insurance paid -501

total
£
68738
7375
1260
5800
83173
-12570
70603
Lucy
employment with red plc
£
salary 36000
less: PA -12570
taxable in 23430
income tax 4686
class 1 NIC 3104
disposal income
£
salary 36000
less: incom -4686
less:class 1 -3104
less: travel -1500
disposal i 26710
self employment
fees 36000
mileage al -2070
33930
less: PA -12570
taxable in 21360
income tax 4272
class 2 NIC 164

class 4 NIC 2189
disposal income
fees 36000
less: incom -4272
less: class -164
less: class -2189
disposal i 29375
Lucy would have a higher amount of disposable income if she chooses self employment
daniel
(a) daniel's trading income
1st may 2022 to 31st october 2022
£
12000
1st november 2022 to 5th april 2023

18750
total tradi 30750
(b) Francine
beneficial 1373
less: intere -240
less: intere -825
taxable ben 308
(c)
2021/22 2022/23
£ £
trading profit 14700 0
business property 4600 0
building society inter 1300 900
chargeable gain 0 14500
loss relief 2021/22 -20600

loss relief 2022/23 -15400
0 0
loss mamorandum
£
loss 68800
less: 2021/ -20600
less: 2022/ -15400
loss carrie 32800

George
(a) the contract is for a limited time

he is not taking any financial risk
he will be only working for Xpee plc
he will have to do his work personally
(b) he is treated as a self employed
£
incomet 40000
less: annua -3600
36400
less: PA -12570
taxable in 23830
income tax 4766
class 2 164
class 4 2443
(c) (i) if george is treated as an employee then the income tax liability would be deducted through PAYE
(ii) class 1 employee NIC would be payable

2812
he would have to pay additional NIC of 205

deducted through PAYE
Petula
working
employment income
£
salary 270000
bonus 41000
mileage al 8350
professiona -630
golf club 0
employer's 0
employmen 318720
property i 11340
savings in 2500
332560
less: PA 0
less: qualif -140
taxable in 332420
working
by HMRC
10000 0.45 4500
11000 0.25 2750
7250
by employer 15600
taxable ben 8350
property income
£
rent receiv 12000
washer dry -420
dishwasher 0
allowable -1640
furnished 1400
property i 11340
(b) Petula has unused pension of 4000 to be able to carry forward in the year 2023/24 because her total income had ex
ecause her total income had exceeded £312000
Tonie
(a) Tonie was previously a resident in UK as she spent 46 to 90 days so she required 3 ties to be matched to be a reside
she only had two ties which were spending more than 90 days in previous years and spending more time in the UK
(b) the contract is reletively for a longer period

she is required to do her work personally
she will only be working for Droid plc
Tonie is not taking any financial risk
(c)
employment income
£
employmen 72585
property i 9670
savings in 1250
total inco 83505
less: PA -12570
taxable in 70935
working
£
salary 74400
mileage al 345
leasing cos -2160
employmen 72585
mileage allowance
by HMRC £
2300 0.45 1035
by employer
2300 0.6 1380
taxable ben 345
property income
£
rent receiv 10080
washer dry -380
dishwasher 0
allowable -1110
8590
furnished 1080
9670
s to be matched to be a resident in UK for the tax year 2022/23
spending more time in the UK then any any other country
KAT
property purchased personally

£
employmen 60650
property i 26600
total inco 87250

less: PA -12570
taxable in 74680

£
NSI-BRB 37700 20% 7540
NSI-HRB 36980 40% 14792
22332
less: mortg -2400
income tax 19932
working
£
rent receiv 31200
mortgage i 0
allowable -4600
26600
if purchased via private limited company

£
employmen 60650
dividends 6000
total inco 66650

less: PA -12570
taxable in 54080

£
NSI-BRB 37700 20% 7540
NSI-HRB 10380 40% 4152
dividends 2000 0% 0
dividends- 4000 33.75% 1350
income tax 13042
conclusion: if KAT purchases the property via limited liability company then she will save £4116 compared to purchase the pro
compared to purchase the property perosnally
Joe
employment income with firstly plc
£
salary 57240
bonus 0
less: occup -3434
beneficial 1183
van 2700
home entertainment system
use 660
gift receiv 3860
employment 62209
working
beneficial loan
average method
£
95000 1267
precise method
600
583
1183
home entertainment
use 660
gift
mv 3860
use 3740
employment income with secondly plc
employment income
£
salary 19695
personal p 0
living acc 6750
furniture 816
working at 0
employment 27261
working
living accomodation
higher of:
annual val 2600
rent paid 6750
furniture 816
total empl 89470

Sammi
(a)
(i) if sammi is provided with the company car then the benefits would be of 29600 and that would be calculated at the
so her income tax liability would be of 13320
she would not have any national insurance contribution
(ii) if she receives an extra director's remunaration then she would have to pay an extra 45% on 27000
additional class 1 employee NIC would be of 878
(b) smark Ltd provided the company car
employers class 1A NIC would be of 4455

only 15% of the leasing would be allowed for corporation tax purpose
additional director's remunaration

the employers class 1NIC would increase by 15.05%
corporation tax liability would decrease
hat would be calculated at the rate of 45%
45% on 27000
Simon
(b)
£
income 260000
less: acquis -127000
legal fees -1800
renovation -50000
legal fees i -2600
loan intere -3000
75600
less: PA -12570
taxable in 63030
£
NSI-BRB 37700 20% 7540
NSI-HRB 25330 40% 10132
income tax 17672
class 2 599
class 4 £
37700 10.25% 3864
25330 3.25% 823
class 4 NIC 4687
(c) capital gains tax liability
£
sales proc 260000
less: legal -2600
257400
less: acquis -127000
less: legal -1800
less: renov -50000
78600
less: AEA -12300
66300
CGT liability £
37700 18% 6786
28600 28% 8008
capital gain 14794
Carol
(a) if carol does not accepts the offer

£
salary 44000
less: occup -2200
41800
less: PA -12570
taxable in 29230

£
NSI-BRB 29230 20% 5846
class 1 employee £
31430 13.25% 4164
(b) income tax liability based on self employed contract
£
income 60000
less: expen -7200
52800
less: PA -12570
40230
£
NSI-BRB 40230 20% 8046
income tax 8046
class 2 164
class 4 £
37700 10.25% 3864
2530 3.25% 82
class 4 3946
IDRIS
(a) advantages of 5th april as accounting date

the application of basis period rule owould simplify
no overlap profits would be there
advantages of 30th june as accounting date

he'll get a longer interval of 9 months
which will help him plan as he will get more time
(b) TATP accrual basis
£
net profit 20175
food and ut 4500
dep 1250
car expens 3269
capital all -4553
TATP 24641
workings
main pool private use total
£ £ £ £
furniture 3500
less: AIA -3500 3500
car 9000
WDA -1620 1053
TWDV cf 7380
total allowance 4553
2 cash basis
£
revenue 39635
food and ut -16777
22858
private us 4200
furniture 3500
dep 0
car 5250
other expe 1085
TATP cash 17223
working
car
10000 0.45 4500
3000 0.25 750
5250
3 conclusion
in cash basis Idris is been charged 7418 less than compared to accrual basis
Ethel
(a) tax adjusted trading profit- cash basis
£
revenue 64500
less: food a -25000
flat rate e 7800
47300
car expens -4750
equipment 0
tax adjuste 42550
working
car
10000 0.45 4500
1000 0.25 250
4750
(b) accrual basis
£
revenue 74500
less: food a -16250
58250
less: car -1800
less: capit -1862
TATP 54588
working
capital allowance
main pool private use car allowance
£ £ £
car 14000
equipment 350
less: AIA -350 350
0 14000
WDA -2520 1512

TWDV cf 11480
total allowances 1862

Alfred and Amaia
(a) Alfred's tax adjusted trading profit
£
tax adjuste 63000
less: mark -5000
less: leas -1435
client ente 0
capital all -118520
revised tax -61955
working
capital allowance
main pool allowance

£ £ £
plant and 116000
less: AEA -116000 116000
car 24000
WDA -2520 2520
TWDV cf 21480
(b) Amaia
non savings income

£
employmen 80938
property i 14350
total inco 95288

less: PA -12570
taxable in 82718

£
NSI-BRB 37700 20% 7540
NSI-HRB 45018 40% 18007
25547
less: mortg -520
income tax 25027

less: PAYE -19240
income tax 5787
working
employment income
£
salary 80000
car 938
job relate 0
employmen 80938
property income
£
rent 15600
less: -1250
property i 14350
John
(a) income tax liability 2022/23
non savings income

£
employmen 310318
beneficial 1350
property i 12980
324648
less: PA 0
taxable in 324648

£
NSI-BRB 41700 20% 8340
NSI-HRB 112300 40% 44920
NSI-additio 170648 45% 76792
130052
less: finan -1500
income tax 128552
£ working
director's 328318 loan
less: occup -18000 1440
less: intere -90
310318
beneficial 1350 1350
property i 12980
property income
£
profit 14855
less: agent' -1875
12980
working personal pension
2019/20 2020/21 2021/22 2022/23

available 40000 40000 40000 4000
less: used -30000 -30000 -30000
10000 10000 10000 30000
contributi -30000
personal p 4000
rate band extension

41700
154000
(b) it is a relevant income for pension

there will be no finance cost
the cost on purchase of use of furniture in FHA would be an allowable expense
Ronald
(a) income tax payable
non savings income savings income dividends total

£ £ £ £
trading in 11592 11592
property bu 8240 8240
employmen 70065 70065
building society interest 1260 1260
dividends 2800 2800
89897 1260 2800 93957
less: PA -12570 -12570
taxable in 77327 1260 2800 81387

£
NSI-BRB 37700 20% 7540
NSI-HRB 39627 40% 15851
savings in 500 0% 0
savings in 760 40% 304
dividends 2000 0% 0
dividends 800 33.75% 270
income tax 23965

less: PAYE -11513
income tax 12452
working
self employment
£
trading income 3840
for april 2 12060
less: capit -432
7752
trading income 11592
property business profit
£
premium 5040
rent receiv 3840
8880
less: SBA -84
less: roof -400
less: insur -156
property bu 8240
Fleur
if fleur remained as a sole trader

£
income tax 46460
class 2 164
class 4 6618
total 53242
£
trading in 135000
less: PA 0
taxable in 135000

£
NSI-BRB 37700 20% 7540
NSI-HRB 97300 40% 38920
income tax 46460
class 2 164
class 4
37700 10.25% 3864
84730 3.25% 2754
6618
if fleur runs as a limited company
£
income tax 25243
corporation 18259
class 1 em 2972
employer c 3898
total 50372
£
director's 35000
dividends 70000
105000
less: PA -10070
taxable in 94930

£
NSI-BRB 24930 20% 4986
dividends-s 2000 0% 0
dividends-b 10770 8.75% 942
dividends- 57230 33.75% 19315
income tax 25243
corporation 18259
conclusion
given increased forecast of trading profit of £135000, incorporating the business would result in saving of overall income tax a
saving of overall income tax and NIC of £2870 for fleur.
Dembe
(a)
£
trading in 130000
less: PA 0
130000
if she chooses to make a personal pension contribution
40000
130000
less: perso -40000
£ 90000
trading in 130000
less: PA -12570
117430
extension of rate band

40000 20% 8000
personal allowance 5028
reduction in income tax 13028

NIC 0
total tax reduction 13028
(b)
disposal made by dembe
£
gain 67000
CGT 18760
disposal made by KATO
16350 18% 2943

36350 28% 10178
13121
overall CGT 5639
legal fees -2000
total CGT s 3639
(c) on first death there will be no inheritence tax payable because spouse transfer is exempt
on second death when the estate is transferred to childern
£
chargeable 880000
less: nil ra -650000
less: resid -350000
chargeable 0
Fang,Hong and Kang
(a) Fang
start of period
1-Aug-20 to 31-Jul-21
12 months
2020/21 1-Aug-20 to 5-Apr-21

8 months
30640
2020/21 1-Aug-20 to 31-Jul-21

12 months
45960
2021/22 current year basis

1-Aug-21 to 31-Jul-22
12 months
39360
£
overlap prof 30640 common 8 month period
the trading expenditure will be treated as incurred on 1 august 2020 provided as it was incurred within the previou
(b)
taxable income taxable gain
2021/22 2021/22 loss mamorandum
£ £ 2021/22
trading pro 29700 chargeable 17800 £
loss: bf -2600 less: tradin 11600 cy loss 45800
less: taxab -31000
27100 6200 less: taxab -11600
property i 3900 less: AEA -6200
loss cf 3200
31000 0
loss relief -31000 capital loss 0
0 taxable gai 0
personal a wasted
taxable in 0
(c)
total Kang Ling Ming
£ £ £ £
y/e 30 june 2021 148800 49600 49600 49600
148800 49600 49600 49600

y/e 30 june 2022
1st july 2021 to 31st 45600 15200 15200 15200
1st november 2021 to 91200 45600 45600 0
136800 60800 60800 15200
trading income assesments
Kang Ling Ming

£ £ £
2021/22 y/e 30 jun 49600 49600 0
Ming's cessation:
y/e 30 june 2021 49600

period ended 31so october 15200
64800
loss relief overlap prof -29400
35400
s incurred within the previous seven years and woould have been allowed if te trade has already been commenced
Wai
(a)
employment income
£
salary 122400
bonus 8100
mileage al 2763
car benefit 1285
overseas e 0
mobile ph 80
living accomodation
annual val 4828
additional 1824
total inco 141280
less: PA 0
taxable in 141280
workings
mileage allowance
by HMRC
11440
£
10000 0.45 4500
1440 0.25 360
4860
by employer
7623
taxable ben 2763
car benefits
6.2
16
22.2 22%
list price 10013 22% 1285
living accomodation
additional benefit
£
price 142000
improveme 24200
166200
limit -75000
91200 1824
(b) P60
this notice will include wai's taxable income, final tax code and QAZ's name and address
this should be provided by 31st may 2023
P45
this will include all the taxable benefits provided by QAZ plc
this should be provided by 6th july 2023
Samson and Delilah
(a) Samson's income tax liability
non savings income savings income total

£ £ £
salary 112000 112000
total income 112000 4800 116800
less: PA -4170 -4170
taxable in 107830 4800 112630

£
NSI-BRB 37700 20% 7540
NSI-HRB 70130 40% 28052
savings inc 500 0% 0
savings in 4300 40% 1720
income tax 37312
working
personal allowance
8400
allowance a 4170
Delilah's income tax liability
non savings income savings income total

£ £ £
employmen 213248 213248
partnershi 34240 34240
247488 4800 252288

less: intere -6200 -6200
less: perso 0 0
taxable in 241288 4800 246088

£
NSI-BRB 43780 20% 8756
NSI-HRB 112300 40% 44920
NSI-additio 85208 45% 38344
savings-add 4800 45% 2160
income tax 94180
workings
£
salary 184000
less: payro -3000
181000
car benefit 32248
gift hampe 0
travelling 0
employmen 213248
car benefit
18.4
16 34
34%
£
list price 67200 34% 22848
additional chauffeur 9400
32248
partnership
85600
delilah's s 34240
gift aid donation

4864 net
6080 gross
rate band extension

43780
156080
(b) tax saving of samson if the society interest waas on delilah's name
£ working
salary 112000 personal allowance
12000 6000 6570
less: PA -6570
taxable in 105430

£
NSI-BRB 37700 20% 7540
NSI-HRB 67730 40% 27092
income tax 34632
there would be a saving of £2680 if the building society interest was in the name of delilah
Danh
(a) 2020/21
danh was not a resident in uk. He would have been a resident if he had 3 or more ties because he spent betwwen 9
2021/22
danh was a resident in UK because along with the two ties he had an additional ties which was spending more than
(b) Danh-income tax liability
non savings income total

£ £
self emplo 73176 73176
property i 10420 10420
partnership -1470 -1470
qualifting i -875 -875
total inco 81251 81251
less: perso -12570 -12570
taxable in 68681 68681

£
NSI-BRB 37700 20% 7540
NSI-HRB 30981 40% 12392
19932
less: mortg -2000
income tax 17932
workings
£
net profit 70200
depriciatio 2300
motor exp 1100
accountan 0
new lease 1460
use of offi -700
capital all -1184
trading in 73176
partnership -1470
less: qualif -875
property income
£
rent receiv 14400
mortgage i 0
allowable -3980
property i 10420
s because he spent betwwen 91 to 120 days in UK and he was not a resident in previous three tax years. Danh only had two ties.
which was spending more than 90 days in previous tax years.

h only had two ties.
NA style
(a)
tax years basis of assesment £
2019/20 1 jan 2020 to 5th april 2020 12600
2020/21 first 12 months

1st jan 2020 to 31 dec 2020 39000
2021/22 current year basis 27600
2022/23 current year basis 31315
overlap profits
£
2020/21 12600
2021/22 13800
26400
(b)
1 non savings income savings income dividends total
£ £ £ £
trading profits 31315 31315
building interest 700 700
interest from gilts 370 370
dividends 5200 5200
total income 31315 1070 5200 37585

less: personal allowa -12570 -12570
taxable income 18745 1070 5200 25015

£
NSI-BRB 18745 20% 3749
savings str 1000 0% 0
savings bas 70 20% 14
dividends 2000 0% 0
dividends 3200 8.75% 280
income tax 4043
2 there will be two POA's in respect of tax year 2023/24

2022
first will be payable at 31 jan 2024

second will be payable at 31 july 2024
balancing 843
ZHI
(a) reduction in poa
current 31804 15902

revised 21724 10862
overall red 5040
claim must be made by 31st january 2023
(b)
£ £
old CGT 12860
revised 46000
less: AEA -12300
-6740
reduction 6120
(c)
basic tax point is when the goods are made available to the customer, in Zhi's case it's 12 december 2022
if the sales invoice is issued on 1st feb 2023 will not affect because the invoice is issued within 14 days
therefore, Zhi can't reduce the amount of VAT payable
(d) PAYE and NIC
1st employee
£
PAYE 300
NIC
employee 199
employer 226
2nd employee
PAYE 2000
NIC
employee 163
employer 753
redction 3641
s 12 december 2022
ed within 14 days
Jade
(a) tax evasion is avoiding the payment of tax through illegal practices whereas on the other hand tax avoidance mean
(b) emerald will not have any income tax on employment income because her salary is only of £6000 which is covered
class 1 NIC
952.5 13.25% 379
(c) overall saving
£
emerald sa 6000
employer N 561
AIA 14000
bonus 10000
employer N 1505
32066
income tax 14429.7

NIC saving 1042.145
her hand tax avoidance means to legally delay the payment of tax by identifying the loop holes.
nly of £6000 which is covered in personal allowance

Martin
(a)
employment income
£
salary 144000
bonus 35100
car benefit 2214
car benefit 1183
beneficial 0
home enter 1480
payroll de -1000
professiona -560
golf club 0
employmen 182417
partnershi 20930
property i 1700
dividend i 440
NSI certific 0
total inco 205487
less: perso 0
taxable in 205487
working
1st car 0.4
16 16%
2nd car
3.4 19%
partnership
54600
16380
4550
(b)
(i) martin's deadline for making an amendment in his tax return is upto 31st january 2025
(ii) if HMRC intend to raise a compliance check then it has to send martin notice upto 26 december 2024
december 2024
Richard feast
(a)
£
net profit 32200
car expens 3297
car expens 0
parking fin 280
property e 3240
decorating 0
decorating 1320
legal fees 2590
less: capit -3780
tax adjuste 39147
working
capital allowance
main pool private use allowances

£ £ £
car 1 14000
car 2 16800
WDA -2520 756

WDA -3024 3024
TWDV cf 13776 11480
(b)
£
class 1 employer NIC 5553
less: employment all -5000
class 1A
£
car benefit 2352
class 1A NIC 354

(c)
(i) the latest date of submitting the tax return by paper is 31st october 2022
the latest date of submitting the tax return electronically is 31st january 2023
(ii) if HMRC intends to carry a compliance check then they have to send richard a notice within 12 months of the date t
within 12 months of the date that they received the tax return
NORMA
(a)
2018/19 2019/20 2020/21 2021/22
£ £ £ £
trading income 27750 27000 16900 9835
employment income
bank interest 3250 3250 3250 3250
total income 31000 30250 20150 13085
less: personal allowa -12570 -12570 -12570 -12570
taxable income 18430 17680 7580 515
chargeable gain 38000
at the time of cessation
£
loss -11000
overlap pro -6750
trading los -17750

2022/23
£
0
9500
3250
12750
-12570
180
Ashura
(a)
the basis period will move straight forward
there will be no overlap proifts
(b) tax adjusted trading loss
£
tax adjuste 10930
decoration -3100
SBA -2196
capital all -12159
tax adjuste -6525
working
structure a 2928
2196
capital allowance
main pool special rate pool private use allowance

£ £ £ £
car 19200
heating sy 5100
water syst 4200
9300
AIA -9300 9300
laptop 2600
AIA -2600 2600
-864 259
WDA
TWDV cf 18336

DEE ZYNE
(a)
£
tax adjusted trading l -11653
royalty -500
capital allowance -5477
working
capital allowance
main pool personal use allowances

£ £ £
car 1 10400
car 2 17800
computer 1257
office furn 2175
3432
AIA -3432 3432
0
10400 17800
WDA -1404 1404

WDA -801 641
TWDV cf 8996 16999

Samantha
(b) taxable income
2021/22 2022/23 2023/24

£ £ £
trading profit 21600 0 11650
building society interest 52100 3800 1850
73700 3800 13500

less: loss relief 0
against trading profit -21600
against other income -50000
2100 3800 13500

less: perso -2100 -3800 -12570
taxable in 0 0 930
taxable gain 2021/22 2022/23 2023/24

£ £ £
chargeable gains 53600 0 12500
less: trading loss relie -10300
43300 0 12500
less: AEA -12300 0 -12300
31000 0 200
less: capital loss bf -200
31000 0 0
capital loss of £3200 will be carried forward against future gains.

Problematic Ltd
(a) £
(i) sales proc 54400
less: cost -18880
unindexed 35520
less indexa -6900
chargeable 28620
working
shares
number cost indexed cost
£ £
purchase 15000 12600 12600
indexation 1714
15000 12600 14314

rights issue 5000 11000 11000
20000 23600 25314

indexation 6911
20000 23600 32225

disposal -16000 -18880 -25780
4000 4720 6445
(ii) £
sales proc 171000

less: index -127000
44000
-27800
chargeable 16200
(b) the new base cost of the asset acquired would be of £127000 (154800-27800)
Volatile Ltd
(a) (i) timing of the relief

(ii) to the extent to which the qualifying charitable donations could be used
(b) y/e y/e

p/e 31/12/21 12/31/2022 12/31/2023 p/e 30/9/24
£ £ £ £
trading profit 44000 0 86500 78700
proprty business profi 9400 6600 6500 0
chargeable gain 5100 0 0 9700
58500 6600 93000 88400
loss relief: current year -6600

carried back previous -58500
carried forward -8700
loss current year

loss carried back -88400
3 months to 31/12/2023 -23250
0 0 61050 0
less: OCD wasted wasted -1200 0
taxable total profits 0 0 59850 0
loss mamorandum
£
loss in y/e 73800
current yea -6600
carried bac -58500
carried fo -8700
remaining 0
loss in y/e 186800

carried bac -88400
carried ba -23250
remaining 75150
y/e
9/30/2025
£
0
0
0
0
Maison Ltd
£
operating p 892900
non deduct 22340
lease prem -715
capital all -70500
tax adjuste 844025
property b 28685
loan intere 1460
property 77985
taxable tot 952155
corporation 180909
working
capital allowance
£
main pool 12037
building co 0
ventilation 6700
heating sy 3900
furniture a 43550
refrigerato 3380
SBA 933
capital all 70500
property business income
£
rent 30500
insurance -1035
initial repa 0
advertising -780
property b 28685
chargeable gains
1st property 2nd property
£ £
gain 109800 gain 26000
less: index -31815 less: index -36855
chargeable 77985 chargeable 0

Harbour Ltd
(a)
£
operating p 715500
depriciatio 11760
amortisati 1300
lease prem -806
interest pa -16400
tax adjuste 711354

less: capit -440667
trading pro 270687
property i 9800
chargeable 104300
taxable tot 384787
corporation 73110
working
capital allowance
special rate pool allowance

£ £
plant and 548000
AIA -333333 333333
214667
FYA 50% -107333.5 107333.5
property income
£
rent 10400
insurance -600
proeprty i 9800
Aeode, Bianca and Charon
(a)
y/e y/e
31-Mar-22 31-Mar-23
£ £
property business in 0 23400
chargeable gains 5800 16200
total profits 5800 107400
loss relief-current yea -5800 0

loss carried forward -100800
qualifying charitable wasted -6600
taxable total profits 0 0
moon ltd
£
trading pro 19700
less: loss re -19700
taxable tot 0
loss mamorandum
£
property lo 26400
used -5800
20600
trading los 111300
loss carrie 131900

used -100800
surrendere -19700
carried fo 11400
(b)
£
tax adjuste 256300
advertisem -5800
lease 765
capital all -8266
revised tra 242999
working
capital allowance
£
laptop 5200
car 1 2232
car 2 834
8266
(c) Charon Ltd
property 1
£
sales proc 368000
less: cost -147000
extended c -39000
unindexed 182000
indexation -118776
chargeable 63224
property 2
£
sales proc 167000
less: cost -172000
capital loss -5000

Mixture Ltd
(a)
(i) mixture Ltd augmented profits for the year 31 march 2023 is £515000 which has exceeded the required threshold o
(ii) corporation tax liability would be of 89300
as mixture Ltd is a large company four quarterly instalments would be there of 22325
1st instalment 14 october 2023

2nd instalment 14 january 2024
3rd instalment 14 april 2024
4th instalment 14 july 2024
(b) expenditure qualified
£
staircase 0
sprinkler 16400
doors and 0
ventilation 27100
machinery 76600
building al 9200
movable pa 33800
decorative 0
(c)
(d)
£
rent receiv 15800
lease 16560
less: adver -900
insurance -1750
property b 29710
eeded the required threshold of £500000 (1500000/3) because it has 2 51% companies in the group
Alimag Ltd
Gamila
£ £ £
directors 30000 30000
dividends 70000 70000
total inco 30000 70000 100000
less: PA -12570 -12570
taxable in 17430 70000 87430

£
NSI-BRB 17430 20% 3486
dividends 2000 0% 0
dividends 18270 8.75% 1599
dividends- 49730 33.75% 16784
income tax 21869
£
class 1 em 17430 13.25% 2309
class 1 em 20900 15.05% 3145
income tax liability for magnus
dividends total
£ £
30000 30000
less: PA -12570 -12570
17430 17430

£
dividends s 2000 0% 0
dividends b 15430 8.75% 1350
income tax 1350

no class 1 NIC would occur because Magnus doesn't have any other income
corporation tax liability of Alimag Ltd
£
trading pro 180000
less: direc -30000
less: emplo -3145
TTP 146855
corporation 27902
overall saving if revised profit extract is used
£
original 76284
revised 56575
overall sav 19709

Hopi Ltd
income tax liability for kaya Ltd if she took it as director's remuneration

£ £ £
additional 25000 25000
total inco 55000 45000 100000
less: perso -12570 -12570
taxable in 42430 45000 87430

£
NSI-BRB 37700 20% 7540
NSI-HRB 4730 40% 1892
dividends h 43000 33.75% 14513
income tax 23945
£
class 1 em 37700 13.25% 4995
class 1 em 4730 3.25% 154
revised class 1 employee 5149
revised cla 45900 15.05% 6908
corporation tax of Hopi Ltd
£
tax adjuste 80000
less: additi -25000
less: NIC -3763
taxable tra 51237
corporation 9735
if Kaya receives it as an additional dividend income

£
original inc 13431
additional 8438
income tax 21869
no changes will be there in class 1 employee and employer

Jogger Ltd
(a) Jogger Ltd's tax adjusted trading profit
£
operating profit 1052482
depriciation 58840
1111322
less: capital allowanc -1167182
working
capital allowance
main pool short life special rate pool

£ £ £ £
TWDV bf 26600 21167
car 11800
integreal features 1300000
AIA -1000000
300000
50% FYA -150000
second hand machinery 12500
zero emission car 9000

FYA -9000
disposal of car -11700
disposal of lorry -8600
29800 12500 9467
WDA main pool -5364

WDA special rate -568
WDA short life -2250
transfer of additional 50% FYA balance 150000
TWDV cf 24436 10250 158899

allowance
(b)
£
interest income 33060
disposal of shares 83467
total profit 242527

less: trading loss -55860
taxable total profits 186667
corporation tax liabili 35467
working
property income shares
rent 44000 proceeds 150000

lease prem 82000 less: cost -47660
property i 126000 102340

less: index -18873
gain 83467
allowance
£
1000000
150000
9000
5364
568
2250
1167182
Online Ltd
(a) online Ltd's taxable trading profits
£
operating profit 896700
depriciation 21660
amortisation 9000
leasehold property -7380
trading profit 910156

total profits 970537
property loss -12500
QCD -6800
taxable total profits 951237
working
capital allowace
main pool special rate pool allowance

£ £ £ £
TWDV cf 56700 13433

purchased a car 13700
disposal of car -17200

disposal of all items in special rate pool -9300
53200 4133
WDA main pool -9576 9576

WDA special rate pool -248 248
TWDV cf 43624 4133
allowance 9824
shares
£
sales proc 90600
less: cost -25519
65081
less: capita -4700
chargeable 60381
share pool
£ £
purchase 40000 49300 49300
indexation 3599
40000 49300 52899

sold -22000 -27115 -29094.45
18000 22185 23804.55

indexation 1714
18000 22185 25519

less: sold -18000 -22185 -25519
0 0 0
Stretched Ltd
(a) 1st y/e 31/12/22

2nd p/e 31/3/23
y/e 31/12/22 p/e 31/3/23

£ £
tax adjusted trading p 514000 128500
less: capital allowanc 0 -50338
514000 78162
property business 36000 9000
total profit 591000 87162

less: loss -330000
less: QCD 0 -5000
corporation tax 49590 15611
due dates 1-Oct-23 1-Jan-24
workings
capital allowance
main pool allowance

£ £ £
car 7500
office equipment 50000

super deduction -50000 50000
WDA -338 338
TWDV cf 7162
allowances 50338
Starfish Ltd
(a) tax adjusted trading loss
£
loss before taxation -190000
depriciation 34400
donation to political 300
qualifying charitable 1350
impairment loss 0
entertaining custome 3600
entertaining employe 0
conselling expenses 0
less: capital allowanc -2300
trading loss -152650
working
capital allowance

£ £ £ £
TWDV bf 23600 13200
laptop 2600
disposal -27500
laptop
car -9600
balancing alowance -1300 -1300

balancing charge 3600 3600
(b) 4 month y/e y/e y/e

31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22
£ £ £ £
tax adjusted trading p 2600 51600 53900 14700
bank interest 600 1400 1700 0
total income 3200 53000 55600 14700

less: CY
less: loss relief 0 -13250 -55600 -14700
3200 39750 0 0
less: QCD -800 -1000 wasted wasted
taxable profits 2400 38750 0 0

9 month 3 month
31-Dec-22 31-Mar-23
£ £
49900 0
0 0
49900 0
0
-49900
0 0
wasted wasted
0 0
Mooncake Ltd
(a) the timing and the cashflow in the way which relief is obtained
to the extent where the entire qualifying charitble donations is used
(b) tax adjusted trading loss
£
operating loss -93820
depriciation 7230
lease of office equip 0
lease of car 510
entertaining staff 0
entertaining oversea 8720
qualifying charitable 1600
working
capital allowance
main pool allowance
£ £
TWDV cf 43200
disposal
van -11800
car 1 -8100
car 2 -5300
18000
WDA -3240 3240
(c)
31-Mar-22 31-Mar-23
£ £
chargeable gain 0 0
161900 0
less: trading loss -79000
82900 0
less: QCD -1400
81500 0
corporation tax 15485 0
(ii) loss carried forward to 31 march 2024
£
property lo 4400
capital loss 4900
Retro Ltd
(a)
£
loss before -80340
food hamp 0
gift to cus 0
QCD 1100
impairment 0
leaseing co 660
fine for he 5100
interest 0
capital all -50420
SBA -12000
trading los -135900
working
capital allowance
£ £ £
TWDV cf 39300
car 1 14700
delivery va 21769
super dedu -28300 28300
car 2 12400
FYA -12400 12400
54000
WDA -9720 9720
TWDV bf 44280
allowance 50420
SBA 12000
(b) y/e p/e

31-Aug-21 31-Mar-22
£ £
tax adjusted trading p 56600 47900
bank interest 1300 0
57900 47900
loss: CY -47900
loss: carried back -33775
24125 0
less: QCD -540 wasted
(c) loss mamorandum
£
loss 31 ma 135900
less: curre -47900
less: carri -24125
loss carrie 63875

Lucky Ltd
(a) when the company starts any trading activity or earns an income which is taxable that date is considered as a starti
(b)
£
operating p 716903
advertising 0
depriciatio 14700
amortisati 9000
premium d -1300
capital all -364594
total inco 374709

interest i 700
taxable tot 375409
corporation 71328
working
main pool allowances
£ £
computer 6300
super dedu -8190 8190
integreal f 291200
AIA -291200 291200
office equ 49566

-64436 64436
car 12800
WDA -768 768
TWDV cf 12032

t date is considered as a starting date of an accounting period for corporation tax purpose
Last orders Ltd
(a)
£
operating l -276480
depriciatio 9460
counsellin 0
pension co 0
employer c 0
class 1A 0
unpaid bon 10400
lease of ca 0
entertainin 1920
overseas c 440
QCD 800
capital all -10600
tax adjuste -264060
(b)
£
property i 22800
chargeable 34500
total inco 57300

loss relief -57300
0
QCD wasted
working
property business income
£
rent 32000
less insura -1500
repairs -7700
property i 22800
chargeable gain
£
sales proc 126800
less: cost -79400
47400
less: index -12900
34500
Wretched Ltd
(a) wretched Ltd is a resident in UK because the company is incorporated in UK regardless it's central management is o
(b)
£
trading los -141200
advertising -7990
lease prem -2296
capital all -4784
revised tra -156270
working
capital allowance

£ £ £
laptop 1200
car 1 8300
car 2 12300
car 3 18800
20600 18800

TWDV cf 18128 18048
allowance 4784
property loss
£
rent receiv 4200
less: adver -2100
repairs -5900
property bu -3800
capital loss
£
sales proc 21400
less: cost -26200
capital loss -4800

ss it's central management is overseas.
Music Plc
(c)
£
trading pro 92000
interest i 12000
chargeable 23000
127000
corporation 24130
working
chargable gain
£
net charge 120000
less -65000
55000
unused capi -32000
chargeable 23000
Jump Ltd
(a) Jump Ltd's tax adjusted trading loss
£
operating l -144700
depriciatio 8100
employee t 0
employee 0
staff party 0
lease of ca 180
accountan 0
issue of sh 3800
renewal of 0
entertaini 1700
overseas c 790
political pa 900
capital all -3330
tax adjuste -132560
workings
capital allowance
main pool special rate pool allowances
£ £ £ £
TWDV cf 12100 5700
car1 -9300
car2 -6100
6000
-3600 -3600
WDA -270 270
TWDV cf 5730
balancing allowance -3330
(b)
(i) the main factor which will influence the choice of loss relief will be the timing that when the cashflow should be use
(ii) the maximum loss that can be relived against seven month period would be of £42400
(iii) maximum trading loss surrendered will be of £23625 and £126000

hen the cashflow should be used
Solo Ltd
(a)
£
operating l -151300
premium -2150
balancing 4300
tax adjuste -149150
(b)
y/e
31-Mar-23
£
trading profit 0
property business 9480
total income 20278

less loss relief
current year -20278
taxable total income 0
corporation tax 0
property business profit

£
rent receiv 10400
less insura -920
property bu 9480
disposal of shares

£ £ £
purchased 20000 27000 27000
indexation 10827
20000 27000 37827
20000 27000 37827

less -5500 -7425 -10402
14500 19575 27425
sales proceeds
purchased 4800
sold -4600
200
26400
less: -10402
15998
chargeable gains 16198
(c)
y/e three month period ended
31-Dec-21 31-Mar-22
£ £
chargeable gain 0 0
48000 16500
less: loss relief 3 month -16500

less: loss relief 9 mon -36000
12000 0
QCD: -1200 wasted

Ash Ltd
(a)
(i) accounting period of Ash Ltd
12 months 1-Feb-21 to 31-Jan-22

2 months 1-Feb-22 to 31-Mar-22
year ended 31 march 2023
(ii) ash Ltd was first incorporated in UK and it's directors were also UK based even if 2 of the directors moved overseas
(b)
£
profit befo 305500
depriciatio 14700
gift to cus 3500
gift to staff 0
qualifing c 1100
impairment 0
lease 1890
fine for br 6400
renewal of 0
interest pa 0
333090
less: quali -1100
taxable tot 331990
corporation 63078
(c)
£
disposal p 150000
less: index -38004
111996
cy trading -19700
capital loss -8800
group relie -20800
taxable tot 62696

working

£ £
purchased 20000 24800 24800
rights issue 5000 5750 5750
25000 30550 30550

indexation 7454
25000 30550 38004

less: -25000 -30550 -38004
e directors moved overseas, Ash Ltd would still be a UK resident because of it's incorporation and also company's board meetings are held
pany's board meetings are held in UK
Clueless Ltd
(a) revised computation of corporation tax
£
profit befo 382610
depriciatio 15740
client ente 400
qualifying 900
portable p 0
box of cho 1650
capital all -58182
trading pro 343118
loan intere 32800
chargeable 92603
total tradin 468521
less: OCD -900
taxable tot 467621
corporation 88848
working
capital allowances

£ £ £ £
TWDV bf 12400 13500
new computers 42300
super deduction -54990 54990
car 11800
disposal -9300
12400 16000
WDA -2232 2232

WDA car -960 960
TWDV cf 10168 15040
chareable gain
£
sales proc 70000
less: index 20860
deemed pr 90860
sales proc 200000

less: deem -90860
109140
less: index -16537
chargeable 92603
Long Ltd
(a) Long Ltd
£
operating p 384400
depriciatio 43050
amortisati 5000
lease of ca 540
less: dedu -3410
less: capit -58730
trading pro 370850
chargeable 8500
total profit 379350
less: group -34900
taxable tot 344450
corporation 65446
working
capital allowance

£ £
TWDV bf 44800
lorry 36800
super dedu -47840 47840
new car 15700
60500
WDA -10890 10890
TWDV cf 49610
allowances 58730
road Ltd
£
operating l -26100
donations 2800
capital all -11600
loss to be -34900
available t 94838
£
interest i 4300
less: QCD -2400
1900
corporation 361
Lena Ltd
(a) capital allowance

£ £ £
car 30000
lorries 640000
-832000 832000
30000
WDA -2700 2700
car 54000
FYA -54000 54000
TWDV cf 27300
(b)
(i) from 1 april 2013 to 31 march 2017 the company was treated as non resident because neither the company was inc
the company was treated as a resident from 1 april 2017 to 31 march 2023 because the company's central manage
(ii)
£
Thames Ltd 72600
Zambezi Ltd 17000
y/e 31 may 2023 89000
yangtze Ltd 0
group relief 178600
(c)
(i) as nile owns a company so the threshold would be divided to £1500000/2 that will be of £750000 each company of
(ii)
£
corporation 166820
less: insta -101200
final insta 65620
due date 14-Jul-23

e neither the company was incorporated in UK nor it's central management was in UK
he company's central management was in UK and also was incorporated in UK
e of £750000 each company of any of the company's augmented profits exceeds this they would be considered as large company
ed as large company
Jorge
taxable gains
£
house 31000
copyright 24300
55300
less: AEA -12300
43000
losses bf -25000
taxable gai 18000
1 total exempt chargeable

occupied 34 34
travelling 18 18
employment overseas 24 24
occupied 11 11
elsewhere in UK 30 30
travelling 22 18 4
elsewhere in UK 26 18 8
occupied 17 17
employment overseas 12 12
travelling 7 7
last 9 months 9 9
210 179 31
PRR 179000
£
sales proc 308000
less: cost -93000
less: legal -5000
210000
PRR -179000
chargeable 31000
2 copyright
£
sales proc 80300
less: -56000
chargeable 24300
3 exempt 0
4 exempt 0
Winston
(a) if he doesn't sell his business
£
sales proc 47560
less: AEA -12300
35260
CGT £
12600 10% 1260
22660 20% 4532
CGT liabilit 5792
if he sells his business
qualifing for BADR Not qualifing

£ £
freehold shop 60000
gain on painting 47560

less: loss on warehouse -14000
less: AEA -12300
60000 21260
CGT £
60000 10% 6000
21260 20% 4252
CGT 10252
(b) Renaldo
£
sales proc 92000
commissio -4600
87400
cost -20240
chargeable 67160
Mick
(a) if no reliefs are available
warehouse
£
disposal 522000
less: cost -258000
less: enha -99000
chargeable 165000
shares
£
disposal 3675000
less: -537600
chargeable 3137400
working
share pool
number cost
£ £
purchased 500000 960000
bonus 750000 0
1250000 960000
less: -700000 -537600
(b) freehold warehouse
rollover relief would be available
shares
BADR will be available
Ruby
(a)
£
disposal 47000
less: AEA -12300
chargeable 34700
CGT liability
£
14185 18% 2553
20515 28% 5744
CGT liabilit 8297
(b) pola ltd

investor's relief not in investor's relief
£ £
shares sold 37300
residential property 47000
less:AEA -12300
37300 34700
CGT liability
£
37300 10% 3730
34700 28% 9716
CGT liabilit 13446
aplo ltd
£ 2.15
sales proc 59000
less: cost -86000
-27000
investment 47000
20000
less AEA -12300
7700
CGT tax 1386

David and angela
(a)
CGT computation for David brook
£
house 36988
shares in b 0
36988
less: AEA -12300
taxable gai 24688
CGT liabilit 4444
working
period of occupation
total months exempt chargeable

occupied 42 42
elsewhere 45 45
occupied 84 84
unoccupie 60 60
last month 9 9
240 180 60
£
sales proc 381900
less: acquis -86000
295900
PRR -221925
chargeable 73975
shares in b 0
Angela brook
BADR other gains residential property

£ £ £
house 36988
shares 26400
sale of offi 3700
total charg 3700 26400 36988
AEA -12300
taxable gai 3700 26400 24688
CGT liability
£
qualifying 3700 10% 370
other gains 6855 10% 685
19545 20% 3909
residential 24688 28% 6913
capital gains tax liabil 11877
working
£
sales proc 62400
less: cost -36000
chargeable 26400
remaining rate band
37700
-27145
10555
BADR -3700
remaining 6855
BILL DING
(a) Bill
£
proceeds 260000
less: cost -112000
148000
gift relief -123333
chargeable 24667
less: AEA -12300
taxable gai 12367
capital gain 1237
Belle
£
sales proc 265000
less: cost -136667
128333
AEA -12300
116033
capital gain 23207
(b) if gift relief is not made
Bill
£
proceeds 260000
less: cost -112000
148000
less; AEA -12300
135700
capital gain 13570

Belle
£
sales proc 265000
less: cost -260000
5000
less: AEA -5000
chargeable 0
Jerome
(a) house adjustment is exempt as th transfer between spouses are at nil gain nil loss
shares
£
sales proc 98400
less: acquis -39000
gain 59400
less: gift h -50600
chargeable 8800
chattles
lower of:
normal computataion
£
sales proc 12200
less: cost -2100
10100
10333
chargeable 10100
gift of land
£
sales proc 78400
less: cost -26460
chargeable 51940
Daljeet
(a)
working
ABC ltd
£
sales proc 100600
less: cost -57143
43457
less: AEA -12300
31157
capital gain 3116
working
share pool
number cost
£
accquired 1000 60000
rights issue 400 20000
1400 80000
sales -1000 -57143
holiday cottage
£
disposal 110000
selling cost -1000
109000
less: cost -64700
44300
less: AEA -12300
taxable gai 32000

Fogo Ltd
investment property
(a) £
sales proc 625000
less: cost -500000
125000
indexation -134500
indexation 0
warehouse
£
sales proc 560000
less: cost -100000
460000
indexation -59300
gain 400700
net gain
£
investment 0
warehouse 400700
shares -25000
net gain 375700

Pere and Phil
(a) PET
23-Aug-16
£
transfer of value 420000
less: avail 2016/17 -3000
2015/16 -3000
marriage exemption -5000
409000
NRB 0
IHT 0
gross chargeable amo 409000
payable on death
£
gross chargeable amo 409000
less: available nil rat -325000
84000
IHT payable 33600
taper relief -26880
IHT payable on death 6720
(b) phil's capital gains tax liability
£
sales proc 496700
less: cost -420000
less: enha -5200
71500
less: AEA -12300
taxable gai 59200

CGT liability
£
23550 18% 4239
35650 28% 9982
capital gains 14221

Afiya
(a) shares CLT

£ 27-Jan-22
before the 64000 £
after the t -4500 transfer of 400000
PET 59500 less: NRB -325000

less: avail 2021/22 -3000
2020/21 -3000 75000
gross charg 53500 IHT payable 18750
gross charg 418750
additonal IHT payable on death

£
gross charg 418750
less: nil ra -271500
147250
IHT payabl 58900
no taper re 0
tax already -18750
IHT payabl 40150
death estate
£
value 623000
less: funer -3000
620000
exempt leg -150000
chargeable 470000
RNRB -90000
380000
IHT payabl 152000
Kendra
(a)
£
property 970000
building so 387000
ISA 39000
certificates 17000
life policy 225000
1638000
less: incom -12800
less: unsec -1200
1624000
less: Nil r -325000
1299000
IHT liability 519600

James
(a) CLT PET

9-Oct-15 14-May-21
£ £
transfer of value 35000 420000
less: avail 2015/16 -3000 2021/22 -3000
2014/15 -3000 2020/21 -3000
29000 414000
NRB -29000
gross chargeable tran 0 414000
IHT payable on death
PET CLT
14-May-21 2-Aug-21
£ £
gross charg 414000 260000
less: availa -296000 0
118000 260000
IHT liability 47200 104000
James daughter will be responsible to pay the IHT liability IHT liability is payable by trustees
death estate
£
chargeable 870000
the personal reperestatives will pay the tax

y is payable by trustees
BLU
(a) PET
Jan-20
£
gross charg 211000
death estate
£
gross chagr 800000
less: NRB -439000
361000
IHT payabl 144400
working
nil rate band
£
at death 325000
less: Gct -211000
114000
spouse's fu 325000
439000
(b) shares
£
before tran 1200000 0.6
after trans -200000 0.2
transfer of 1000000
1000000
nil rate ba -325000
675000
IHT paid b 168750
gross charg 1168750

additional IHT on death
CLT
£
gross charg 1168750
less: availa -325000
843750
less: taper -135000
202500
lifetime IH -168750
IHT payabl 33750

Jack and Tom
(a) the disposal of the shares qualifies for the investor's relief as the following conditions are
he has sold the ordinary shares of an unlisted company

the shares were subscribed 17 march 2016
Jack is not an employer or employee of the company
£
sales proc 151107
less: cost -13119
chargeable g 137988
less: curre -1572
less: AEA -12300
124116
CGT liabilit 12412
(b) the trust pays the tax
CLT
20-Feb-23
£
less: avail 2022/23 -3000
2021/22
less: NRB -325000
122000
IHT payabl 24400
if tom pays the tax
CLT
20-Feb-23
£
less: avail 2022/23 -3000
2021/22
less: NRB -325000
122000
IHT payabl 30500
gross charg 480500
2 if tom made the cash gift of £200000 to trust instead to his daughter then it would have become a chargeable lifeti
there would be no inheritence tax payable as the entire amount would be covered into nil rate band of 2020/21
however the amount of £200000 would be used to check the available nil rate band at the time of additonal IHT pa
ve become a chargeable lifetime transfer instead of potentially exempt transfer
o nil rate band of 2020/21
t the time of additonal IHT payable on death

Aurora
(a) IHT payable on death
PET
23-Aug-16
£
less: avail 2016/17 -3000
2015/16 -3000
less: marr -1000
409000
gross charg 409000
additional IHT payable on death
£
gross charg 409000
less: NRB a -325000
84000
IHT 33600
less: Taper -20160
IHT payabl 13440
death estate
£
value 1050000
less: mortg -230000
820000
main resid 500000
1320000
less: RNRB -175000

less: trans -175000
970000
IHT payabl 388000
0.75
(b)
property 1 property 2 property 3
£ £ £
less: PRR -18333 0 -20625
letting relief is only available when the owner is living in the property and lets out a part of it, Aurora was absent du
rt of it, Aurora was absent during the time of letting hence no letting relief is available
Ginger and Nigel
(a) the disposal is at undervalue, so only gift relief would be available

the chargeable amount would be of (4-2.39) i.e. of £1.61
AEA is of 12300
Ginger can transfer 7640 shares to his daughter without incurring any capital gains tax liability
(b) if innocent makes the disposal
£
chargeable 65000
less: cost -2000
63000
CGT 6300
if Nigel makes the disposal
£
chargeable 65000
less: cost -30800
34200
CGT 6840
there would be a tax saving of £540 if innocent makes the disposal rather than Nigel
Mick stone
(a) machinery
£
proceeds 522000
less: cost -258000
less: repla 0
chargeable 264000
shares
£
proceeds 3675000
less: cost -537600
chargeable 3137400
working share pool
number cost
£
500000 960000
750000 0
1250000 960000
-700000 -537600
(b) free hold warehouse
possible relief
rollover relief may be available in respect of chargeable gain
rolling Ltd
BADR
details required is to have a holding of minimum 5% in the company

Ruby
(a) disposal of residential investment property
£
chargeable 47800
less: AEA -12300
taxable gai 35500
CGT £
14185 18% 2553
21315 28% 5968
CGT liability 8521
payment date
26-Oct-22
(b)
1 Pola Ltd
Qualifying for BADR Not Qualifying for BADR
£ £
shares 37300
investment property 47800
less: AEA -12300
37300 35500
CGT liability
£
qualifying 37300 10% 3730
residential 35500 28% 9940
CGT liability if Pola 13670
2 Alpa plc
£
shares -28200
residential 47800
19600
less: AEA -12300
taxable gai 7300
CGT liability
1314
less: POA -8521
CGT repayb -7207
loss
87200
-59000
28200
Paul
Palu Ltd's corporation tax liability
£
tax adjuste 175000
less: direc -8000
167000
corporation 31730
Paul's income tax liability

£ £ £
dividends 135270 135270
total inco 8000 135270 143270
less: PA 0 0 0
taxable in 8000 135270 143270

£
non saving 8000 20% 1600
dividends-s 2000 0% 0
dividends-b 27700 8.75% 2424
dividends- 105570 33.75% 35630
income tax 39654
no NIC would be payable because £8000 is covered in the starting rate band
if he runs as a sole trader
£
TATP 175000
less: PA 0
taxable in 175000
£
37700 20% 7540
112300 40% 44920
25000 45% 11250
class 2 164
£
class 4 37700 10.25% 3864
124730 3.25% 4054
class 4 NIC 7918
conclusion
£
runs as a b 71384
runs as a s 71792
there would be tax increase -408

Richard Tryer
working
car benefit employment income
£ Non savings income
£ salary 41030 £
list price 17900 car benefit 3454 employment income 68738
fuel benefi 4934 proeprty income 7375
car benefit 4654 living acc 13200 building society interest
less: priva -1200 furniture 2420 dividends
running co 3700
car benefit 3454
68738 total income 76113
fuel benefi 4934
less: PA -12570
living accomodation taxable income 63543

higher of:
annual val 3600 income tax liability
rent paid 13200
NSI-BRB
NSI-HRB
property income savings sta
savings HR
£ dividends
premium 5040 dividends-
rent 3320
less: roof replacemen -84
less: repairing -400
less: insurance -501
property i 7375
Non savings income Savings income Dividends Total
£ £ £
68738
7375
1260 1260
5800 5800
1260 5800 83173
-12570
1260 5800 70603
£
37700 20% 7540
25843 40% 10337
500 0% 0
760 40% 304
2000 0% 0
3800 33.75% 1283

less: PAYE -19130
income tax payable 334

Kendra
(a) died 31-Mar-23

previous s 31-Mar-16
PET
5-Oct-21
£
less: AA 2021/22 -3000
2020/21 -3000
GCT 247000
less: NRB -185000
62000
IHT payabl 24800
taper relief 0
IHT payabl 24800
death estate
£
residential 970000
insurance 225000
less: avail -78000
chargeable 1117000
IHT payabl 446800

Jason
(a) there would be no unexpected income tax liabilities
disadvantathe tax would be collected through PAYE
(b) income tax liability if he takes the offer of initial plc
£
salary 180000
less: occup -8000
bonus 24000
meals 0
196000
less: PA 0
taxable in 196000
income tax liability if he takes the offer of subsequent plc
£
salary 205000
occupation 0
car benefit 8750
living acc 3000
beneficial 1867
employmen 218617
working
basic char 1600
additional 1400
3000
he would have to pay £10178 more if he takes the offer of subsequent plc
Kat
(a) if property purchased personally
£
salary 60650
property i 26600
87250
less: PA -12570
taxable in 74680

£
NSI-BRB 37700 20% 7540
NSI-HRB 36980 40% 14792
working
£
rent 31200
other expe -4600
26600
if purchased through limited liability company
£
salary 60650
dividend 6000
total inco 66650
less: PA -12570
taxable in 54080

£
NSI-BRB 37700 20% 7540
NSI-HRB 16380 40% 6552

conclusion
purchased 14092
purchased 22332
tax saving 8240
(b) the annual exempt amount would not be available if purchased or disposed via company
Dembe
(a) Dembe's income tax liability and NIC
£
trading pro 130000
less: PA -12570
taxable in 117430

£
non saving 77700 20% 15540
non saving 39730 40% 15892
working reduction in income tax liability

personal allowance income tax 13028
40000
90000
rate band extension

basic 77700
higher 190000
(b) Disposal made by Dembe

£
67000 28% 18760
Disposal made by Kato
£
proceeds 65000
less: AEA -12300
taxable gai 52700
CGT liability
£
16350 18% 2943
36350 28% 10178
CGT liabilit 13121

over all CGT saving 3639
(c) £
combined e 880000
less: RNRB -350000
less: NRB -650000
payable at 40% 0
original i.e. without pension contribution
£
trading pro 130000
less: PA 0
taxable in 130000

37700 20% 7540
92300 40% 36920

Fleur
if he remains self employed
£
revised inc 46460
class 2 (r 164
class 4 6618
total 53242
working
£
revised TA 135000
less: PA 0
taxable in 135000

£
37700 20% 7540
97300 40% 38920
incorporation
£
revised inc 25243
class 1 em 2972
class 1 em 3898
corporation 18259
total 50372
working
income tax liability personal allowance
£ 2500
dividends 70000
105000
less: PA -10070
taxable in 94930

£
24930 20% 4986
2000 0% 0
10770 8.75% 942
57230 33.75% 19315
conclusiongiven increased in forecast to £135000, incorporating her business would bring an overall tax saving of £2870.
erall tax saving of £2870.
Jason
(b) employed by initial plc
£
salary 180000
occupation -8000
bonus 24000
free meals 0
employmen 196000
less: PA 0
taxable in 196000
£
NSI-BRB 37700 20% 7540
NSI-HRB 112300 40% 44920
NSI- additi 46000 45% 20700
employed by Subsequent plc
£
salary 205000
occupation -9000
car benefit 8750
living acc 3000
loan 1867
taxable in 209617
£
NSI-BRB 37700 20% 7540
NSI-HRB 112300 40% 44920
NSI-additio 59617 45% 26828
working
living accomodation
annual val 1600
additional 1400
he would have to pay £6128 more in income tax liability if he takes up the employment by subseqent plc
nt by subseqent plc
Poppy
(a)
£
salary 65000
car benefit 3488
mobile ph 96
employmen 68584
savings in 300
68884
loss reliefs -9350
less: PA -12570
personal a 46964
workings
£
trading los -19500
capital all -900
revised tra -20400
share
3 months -1700
9 months -7650
-9350
Kioni
company's personal pension contribution
the income tax liability would be the same as the company's pension contribution is exempt
the employee and the employer will also remain the same
corporation tax liability would be of £15200
personal pension contribution
NSI Dividends Total

£ £ £
67500 68000 135500

less: PA -4820 -4820
taxable in 62680 68000 130680
£
NSI-BRB 57700 20% 11540
NSI-HRB 4980 40% 1992
dividends 2000 0% 0
dividend-H 66000 33.75% 22275
working
rate band extension
57700
170000
class 1 employee NIC

£
37700 13.25% 4995
29800 3.25% 969
class 1 employee NIC 5964

corporation tax liabili 14628
Patience
employment
£
salary 33750
occupation -2025
31725
school pla 540
clock 0
beneficial 0
employmen 32265
trading pro 16100
pension in 10750
property i 3500
total inco 62615
less: perso -12570
taxable in 50045
£
NSI-BRB 42200 20% 8440
NSI-HRB 7845 40% 3138
working
trading profit
£
14800
5000
less: overl -3700
trading pro 16100
rate band extension
4500
42200
capital gains tax
£ £
property 1 122000
less: cost -81400
40600
property 2 98000
-103700
-5700
total 34900
less: AEA -12300
22600

KAT
(a) if purchased personally
£
employmen 60650
property i 26600
total inco 87250
less: perso -12570
taxable in 74680
£
NSI-BRB 37700 20% 7540
NSI-HRB 36980 40% 14792

less: mortg -2400
working 19932
property income
£
property i 31200
less: allow -4600
26600
less: mortg -2400
24200
if purchased via limited liability company
£
employmen 60650
dividends 6000
total inco 66650
less:PA -12570
taxable in 54080
£
NSI-BRB 37700 20% 7540
NSI-HRB 10380 40% 4152
dividends 2000 0% 0
dividends- 4000 33.75% 1350
13042
£
personally 19932
via compa -15816
tax saving 4116

Carol
(a) if she remains employed
£
salary 44000
occupation -2200
employmen 41800
less: PA -12570
taxable in 29230
£
NSI-BRB 29230 20% 5846

£
31430 13.25% 4164
(b)
£
income 47000
extra deliv 13000
expenses -7200
52800
less: PA -12570
taxable in 40230
£
NSI-BRB 40230 20% 8046
class 2 164
class 4
£
37700 10.25% 3864
2530 3.25% 82
class 4 NIC 3946

employed self employed
£ £
income 44000 52800
occupation -2200 0
class 1 NIC -4164 -4110
income tax -5846 -8046
-2400
disposal i 31790 38244
self employment is the better option

Ethel
(a) cash basis
£
revenue 64500
household -17200
car benefit 4750
equipment 0
TATP 52050
(b) accrual basis
£
revenue 74500
household -16250
58250
running co -1800
capital all -1862
54588
working
capital allowance

£ £
14000
350
AIA -350 350
-2520 1512
1862
Robinette
(a)
self employment employment self employment
£ £ £
trading pro 106900 salary 63600 trading pro 55700
capital all -8850 running co 1440 capital all -26200
living acc 4140
98050 workplace 0 29500
less: overl -22700 mileage al -520
11800
profit from 75350 68660
162098
less: PA 0
taxable in 162098
property income
£
6600
312
6288
George
(a)
george's work is based on a fixed contract
george cannnot work for any other client
george has to do his work personally
george has the contract for a minimum period
(b) if he is treated as self employed
£
income 41000
less: capit -3600
37400
less: PA -12570
taxable in 24830
£
NSI-BRB 24830 20% 4966
class 2 164
class 4 24830 10.25% 2545

Richard
NSI S D Total
£ £ £ £
employmen 68738 68738
proeprty i 7375 7375
savings income 1260 1260
dividends 5800 5800
total inco 76113 1260 5800 83173
less: PA -12570 -12570
taxable in 63543 1260 5800 70603

£
NSI-BRB 37700 20% 7540
NSI-HRB 25843 40% 10337
S- starting 500 0% 0
S-higher ra 760 40% 304
dividends h 3800 33.75% 1283

less: PAYE -19130
income tax payable 334
working
employment income
£
salary 41030
car benefit 3454
fuel 4934
living acc 13200
furniture 2420
running co 3700
employmen 68738
property income
£
premium 5040
rent 3320
less: SBA -84
insurance -501
ceiling repa -400
property i 7375
Feast
(a)
£
net profit 32200
running ric 3297
running che 0
parking fin 280
property e 3240
decorating 0
decorating 1320
purchase o 2590
less: capit -3780
TATP 39147
working
capital allowances
main pool private use allowances

£ £ £
car 1 14800
car 2 16800
16800 14000
WDA -3024 3024

WDA -2520 756
TWDV cf 13776 14000
allowances 3780
(b)
employer class 1 NIC
£
36900 15.05% 5553
employment allowan -5000
553
class 1A £
2352 354
Ashura
(a) the application of basis period will move straight forward

there would be no overlap profits
(b) TATL
£
TATP 10930
decoration -3100
SBA -2196
capital all -12159
TATL -6525
working
main pool special rate pool private use allowances

£ £ £ £
car 19200
heating sy 5100
water syst 4200
9300
AIA -9300 9300
laptop 2600
AIA -2600 2600
19200
WDA -864 259
TWDV cf 18336
allowances 12159
(d) employment income
£
salary 56200
professiona -320
health club 0
occupation -2810
personal p 0
employmen 53070
less: loss re -6525
46545
less: PA -12570
taxable in 33975
DEE ZYNE
(a)
£
trading los -11653
patent roya -500
capital all -5477
revised TA -17630
working
capital allowances
main pool special rate pool private use allowances

£ £ £ £
car 1 10400
car 2 17800
computer 1257
furniture 2175
3432
AIA -3432 3432
10400 17800
WDA -1404 1404
WDA -801 641
TWDV cf 8996 16999
allowances 5477
Amanda
(a) taxable benefit in respect of living accomodation
£ £
basic charge-annual v 6300
cost 182000
limit -75000
2140
furniture 2480
10920
taxable benefit of 5 4550
(b)
£
old loss sha 600
new loss sh 1350
loss relief 1950
(c)
£
taxable in 44430
£
NSI-BRB 38500 20% 7700
NSI-HRB 5930 40% 2372
10072
less: PAYE -10800
income tax -728
working
rate band
800
38500
child benefit
£ £
benefit received 2636
trading income 57000
less: gift donation -800
56200
less: -50000
6200
62
62%
actual child benefit 1634
(d) overall saving
£
property i 2000 20% 400
child benef 2636 20% 527
tax cost t 2000 20% -400
overall sav 527

AUY man
(a) Auy will be treated as an automatic resident in UK as he spends 190 days in each tax year in UK
Bim will be treated as a resident because she spents 90 to 120 days in UK, also fulfills 2 sufficient ties test which are
(b)
£
net profit 87780
depriciatio 3400
entertaini 0
salary allo 4000
95180
less: capit -12938
TATP 82242
working
capital allowance
main pool special rate pool private use allowance

£ £ £ £
TWDV bf 3100
car 1 21000
car 3 14200
car 4 11600
17300 11600 21000

WDA -3114 3114
WDA -696 696
WDA -1260 1008
car 2 10150
AIA -10150 8120
TWDV bf 14186 10904 19740
Total Auy Bim

£ £ £
salary 4000 0 4000
interest on 4500 2800 1700
PSR 73742 58993.6 14748.4
total 82242 61794 20448
(c) class 4 by Auy

£
37700 10.25% 3864
11524 3.25% 375
class 4 NIC 4239
class 4 by Bim
7878 10.25% 807
2 sufficient ties test which are Bim has a house in UK and she has spent more than 90 days in previous tax years
John
(a)
employment income
£
salary 234000
occupation -28000
car 1425
beneficial 530
gold watch 0
207955
less: PA 0
taxable in 207955
£
NSI-BRB 38223 20% 7645
NSI-HRB 112300 40% 44920
NSI-additio 57432 45% 25844

working
car benefits
by HMRC
£
2151
by employer
3576
taxable ben 1425
beneficial loan
£
1440
less: intere -910
beneficial 530
personal pension
£
taxable in 207955
occupation 28000
employer c 11000
246955
annual all 40000

less: 3477.5
39522.5
less: -28000
-11000
personal 523
rate band extension
38223
150523
class 1 NIC
(b) £
37700 13.25% 4995
185155 3.25% 6018
11013
Sophie
(a)
year £
31-Jul-23 second PO 3530
31-Jan-24 balancing 6391
31-Jan-24 first POA 4005
(c) 31-Oct-23
(d) 12 months from the date when the return is received by HMRC
Ann
(a)
pension contribution would be of:
£
gross contr 42000
higher of
3600
38650
therefore £38650 would qualify for tax relief
£
trading pro 38650
less: PA -12570
26080
income tax 5216
Basil palm
£
gross contr 40000
higher of
3600
242000
therefore 40000 would qualify
£
employmen 242000
less: PA 0
242000
£
77700 20% 15540
112300 40% 44920
52000 45% 23400

Chloe
£
property i 24550
less: PA -12570
11980
income tax 2396

David
David brook
house 36988
shares in b 0
36988
less: AEA -12300
24688
CGT liabilit 4444
working
house
£
disposal p 381900
less: cost -86000
295900
PRR -221925
chargeable 73975
total exempt chargeable
42 42
£ 45 45
disposal p 62400 84 84
less: cost -36000 60 60
9 9
chargeable 26400
240 180 60
221925
Angela brook
BADR Other gain Residential property

£ £ £
property 36988
warehouse 3700
shares 26400
3700 26400 36988
less: AEA -12300
3700 26400 24688
£
3700 10% 370
6855 10% 685
19545 20% 3909
property 24688 28% 6913
CGT liability 11877

Bill
(a) Bill CGT liability
£
proceeds 260000
less: cost -112000
148000
less: gift h -123333
24667
less: AEA -12300
12367
CGT liabilit 1237
Belle CGT liability
£
proceeds 265000
less: cost -136667
chargeable 128333
less: AEA -12300
116033
CGT 23207
(b) Bill CGT liability
£
proceeds 260000
less: cost -112000
qualify for 148000
less: AEA -12300
135700
CGT liabilit 13570

Belle
£
proceeds 265000
less: cost -260000
5000
less: AEA -5000
taxable gai 0
Jerome
(a) house inter spouse is exempt
(b)
£
proceeds 98400
less: cost -39000
59400
gift relief -50600
chargeable 8800
antique bracelet
£
disposal p 12200
less: cost -2100
10100
10333
gain is of 10333
land
£
proceeds 78400
less: cost -26460
chargeable 51940
Newt
self employment
£
trading pro 100000
less: PA -12570
taxable in 87430

£
NSI-BRB 37700 20% 7540
NSI-HRB 49730 40% 19892
£
class 2 NIC 164
£
class 4 37700 10.25% 3864
49730 3.25% 1616
class 4 NIC 5480
via limited liability company
entire through director's remuneration
£
director's 88109
less: PA -12570
taxable in 75539

£
NSI-BRB 37700 20% 7540
NSI-HRB 37839 40% 15136
class 1 employee NIIC

£
37700 13.25% 4995
37839 3.25% 1230
employee NIC 6225
no corporation tax liability because entire profit is withdrawn in the form of direcotr's remuneration
dividends
corporation 19000
dividends 81000
£
dividends 81000
less: PA -12570
taxable in 68430

£
dividends-b 35700 8.75% 3124
dividends 30730 33.75% 10371
mix package
NSI D total
£ £ £
remunerat 8000 8000
total inco 8000 50000 58000
less: PA -8000 -4570 -12570
taxable in 0 45430 45430

£
dividends b 35700 8.75% 3124
dividends- 7730 33.75% 2609
corporation tax liability
£
profits 100000
remunerati -8000
pension co -10000
82000
corporation 15580
conclusion
£
sole trader 33076
limited liabiity company

director's 40792
dividends 32495
mixed pac 21313
mixed package appears to be the most beneficial

s remuneration
Harbour Ltd
(a)
£
PBT 715500
depriciatio 11760
amortisati 1300
leasehold b -806
interest -16400
capital all -440667
270687
property i 9800
chargeable 104300
TTP 384787
corporation 73110
workings
capital allowances
AIA FYA special rate pool allowances

£ £ £ £
long life as 548000
AIA -333333 333333
-107334 107334
107333
TWDV bf 107333
allowances 440667
Mixture Ltd
(a)
(i) mixture Ltd is classified as a large company in year ended 31 march 2023 because it's augmented profits are £5150
(ii) corporation tax liability
£
TTP 470000
corporation 89300
the company will have to pay quarterly instalments of £22325
due dates 14-Oct-22 14-Jan-23 14-Apr-23 14-Jul-23
(b)
£
staircase 0
sprinkler 16400
doors and 0
ventilation 27100
machinery 76600
building al 9200
movable pa 33800
decorative 0
(d)
£
rent receiv 15800
lease 16560
advertising -900
insurance -1750
property b 29710
augmented profits are £515000 and it has two other 51% group companies so the threshold of 1500000 would be divided by three and eac
ld be divided by three and each company's threshold would be of £333333 mixture ltd crossed this threshold and hence is classified as a l
d and hence is classified as a large company
Online Ltd
(a)
£
operating p 896700
depriciatio 21660
amortisati 9000
leasehold p -7380
capital all -9824
chargeable 60381
total profit 970537
proeprty bu -12500
QCD -6800
TTP 951237
working
capital allowance

£ £ £ £
TWDV bf 56700 13433
car 13700
disposal -17200 -9300
53200 4133
WDA -9576 9576

WDA -248 248
TWDV cf 43624 3885
allowances 9824
disposal of shares

£ £
purchased 40000 49300 49300
indexation 3599
40000 49300 52899

sold -22000 27115 -29094
18000 76415 23805

indexation 1714
18000 76415 25519

-18000 -76415 -25519
£
proceeds 90600
less: cost -25519
65081
capital loss -4700
chargeable 60381
Streched Ltd
(a) y/e p/e

31-Dec-22 31-Mar-23
£ £
TATP 514000 128500
capital all 0 -50338
514000 78162
property bu 36000 9000
chargeable 41000 0
total profit 591000 87162

loss relief -330000 0
QCD 0 -5000
261000 82162
corporation 49590 15611
due date 1-Oct-23 1-Jan-23

Last orders
(a)
£
operating l -276480
depriciatio 9460
coounsellin 0
pension con 0
class 1 NIC 0
class 1A 0
bonus unpa 10400
lease of ca 0
uk supplier 1920
overseas c 440
QCD 800
balancing -10600
TATL -264060
(b) £
property i 22800
chargeable 34500
total profit 57300
less: loss c -57300
TTP 0
working
property income
£
rent 32000
insurance -1500
repairs -7700
property i 22800
gains
£
proceeds 126800
less: cost -79400
less: index -12900
chargeable 34500
Wretched Ltd
(b)
£
loss -141200
advertisin -7990
premium -2296
capital all -4784
revised tra -156270
working
capital allowance

£ £ £
computers 1200
car 1 8300
car2 12300
car 3 18800
20600 18800
WDA -2472 2472

WDA -752 752
TWDV cf 18128 18048
allowances 4784
property income loss
£
rent 4200
advertising -2100
repairs -5900
property i -3800
capital loss
£
proceeds 21400
cost -26200
capital loss -4800

Retro Ltd
(a)
£
loss before -120000
depriciatio 27240
gift to emp 0
gift to cus 0
political d 420
QCD 680
impairment 0
car lease 660
fine for br 5100
legal fees 0
interest pa 0
capital all -58910
TATL -144810
working
capital allowance

£ £ £
TWDV bf 39300
car 1 14700
delivery va -36790 36790
car 2 12400
FYA -12400 12400
54000
WDA -9720 9720
TWDV cf 44280
allowances 58910
(b)
y/e p/e
31-Aug-21 31-Mar-22
£ £
TATP 56600 47900
bank intere 1300 0
57900 47900
loss relief -47900
-24125
33775 0
QCD -540 wasted
TTP 33235 0
(c) £
loss relief 144810
current pe 0
loss carry -47900

5 months -24125
loss cf 72785
Music plc
(a) Alto, Bass, Cello, Echo, Flute will be a part of capital gains group
(b) music plc owns atleast 51% of Alto,Bass,Cello and Echo

for the year ended 31 march 2023 Alto,Bass and Echo would be a part of 51% group comapny
cello Ltd would be included in 31 march 2024 as it is bought in the current year
Fluet limited indirectly is also a part of 51% group company
(c)
£
TATP 92000
bank inters 12000
chargeable 23000
TTP 127000
corporation 24130
Jump Ltd
(a)
£
operating l -144700
depriciatio 8100
employee t 0
pension 0
staff party 0
lease of ca 180
accountan 0
issue of sh 3800
renewal of 0
entertaini 0
overseas c 790
political d 800
capital all 3330
TATL -127700
(b) the maximum loss relief of this year would be against total profits of £42400
the ross relief of 31 may 2022 is restricted to 5 months that would be of £33250
the loss of £23625 would be offset against the total profits of Hop Ltd
Ash Ltd
(a)
(i) accounting period
1-Feb-21 to 31-Jan-22
1-Feb-22 to 31-Mar-22
y/e 31-Mar-23
(ii) Ash Ltd will be an UK resident company because it is incorporated in UK although the directors have moved oversea
(b)
£
PBT 305500
depriciatio 14700
gift to cus 3500
QCD 1100
impairment 0
lease costs 1890
breach of d 6400
renewal of 0
interest pa 0
333090
less: QCD -1100
TTP 331990
corporation 63078.1
(c) Cedar Ltd
£ working
disposal p 150000
less; index -38004 number indexed cost
£ £
111996 20000 24800
capital loss -8800 rights issue 5000 5750
trading los -19700
group relie -20800 25000 30550
indexation 7454
TTP 62696
25000 38004
ectors have moved overseas but the board meetings and the central control is in UK.
Lena Ltd
(a) capital allowance

£ £ £
Additions not qualiying for AIA
car 30000
Additions qualifying
for super deduction
new lorries -832000 832000
30000
WDA -2700 2700
Additiona qualifying for FYA
car 54000
FYA -54000 54000
TWDV cf 27300
allowances 888700
(b)
(i) from 1 april 2013 to 31 march 2017 mekong Ltd was treated as non resident because both it's incorporation and it's
from 1 april 2017 to 31 march 2023 it would be treated as a resident because it's central management is based in U
(ii) group relief
£
Thames Lt y/e 31 mar 72600
Zambezi Lttwo month 17000

y/e 31 may 89000
Yangtze Lt not qualifying
(c) Nile Ltd

(i) Nile Ltd is not required to pay quarterly in the year ended 31 march 2022 because it's augmented profits did not re
Nile Ltd was required to pay quarterly in 31 march 2023 because it had one 51% group company so the augemente
(ii)
£
TTP 878000
corporation 166820
instalment -101200
final insta 65620
due date 14-Jul-23

both it's incorporation and it's central management was based overseas
tral management is based in UK as the directors held board meetings in the UK
augmented profits did not reach £1500000 and it also didn't have any 51% group company in previous year so it was not required to pay
p company so the augemented profit threshold was divided and was of £750000 and it crossed this mark in the previous year so it was req
so it was not required to pay quarterly.
the previous year so it was required to pay quarterly
Blu
(a)
£
estate 800000
less: NRB -439000
361000
IHT payabl 144400
working
325000
-211000
114000
325000
439000
(b) £
before tran 1200000
less: left -200000
1000000
annual exe2022/23
2021/22
less: NRB -325000
675000
IHT payabl 168750
GCT 1168750
additional after death
£
GCT bf 1168750
NRB -325000
taxable am 843750
less: taper -135000
less: lifeti -168750
additional 33750
Aurora
(a) PET
416000
wedding -1000
annual exe -3000
-3000
GCT 409000
NRB -325000
84000
IHT at deat 33600

less taper r -20160
IHT payabl 13440
death estate
£
property 1050000
mortgage -230000
1320000
less: RNRB -350000
970000
IHT payabl 388000
(b)
property 1 property 2 property 3
£ £ £
gains 100000 150000 150000
less: PRR -18333 0 -95625
letting reli 0 0
chagreable 81667 150000 54375
Letting relief is only available when the part of the property is occupied and the rest of the property is let out. Auro
of the property is let out. Aurora was absent so no letting relief is available
Jason
(b) initial plc
£
salary 180000
occupation -8000
bonus 24000
meals 0
employmen 196000
less: PA 0
taxable in 196000
£
37700 20% 7540
112300 40% 44920
46000 45% 20700
Subsequent plc
£
salary 205000
occupation -9000
car benefit 8750
accomodati 1600
accomodati 1400
beneficial 1867
209617
less: PA 0
taxable in 209617
£
37700 20% 7540
112300 40% 44920
59617 45% 26828
Jason has to pay a liability of £6128 more if he takes an offer from subsequent plc rather than initial plc
her than initial plc
Kioni
if company makes a pension contribution
there will be no change in income tax liability

there will be no change in national insurance contribution
the corporation tax liability would be reduced as 20000 in pension would be an allowable dedecution so the new lia
if kioni makes personal pension contribution
NSI D total
67500 68000 135500

less: PA -4820 -4820
taxable in 62680 68000 130680 working

rate band extension
57700
£
57700 20% 11540
4980 40% 1992
2000 0% 0
66000 33.75% 22275
£
37700 13.25% 4995
29800 3.25% 969
class 1 employee NIC 5964
class 1 employer
£
3010
5779
class 1 em 8789
corporation tax
£
76990 19% 14628
able dedecution so the new liability would be of £15200
rate band extension

Patience
£
salary 33750
occupation -2025
additional 540
clock 0
interest fr 0
employmen 32265
self employment
£
profit 14800
final five y 6900
capital all -1900
overlap pro -3700
1300
self emplo 16100
pension 10750
property i 3500
total inco 62615
less: PA -12570
taxable in 50045
£
42200 20% 8440
7845 40% 3138
income tax 11578

122000 98000
-81400 -103700
40600 -5700
34900
less: AEA -12300
22600
2260
Alfred
£
63000
-5000
-1435
0
capital all -118520
tax adjuste -61955 £ £
116000
-116000 116000
24000
2520 2520
118520
80000
938
0
14350
property
95288 15600
less: PA -12570 -1250
0
82718
14350
37700 20% 7540

45018 40% 18007
25547
less; -520
25027
-19432
5595
Carol
(a)
£
salary 44000
occupation -2200
41800
less: PA -12570
29230
£
income tax liability 29230 20% 5846
class 1 employee 31430 13.25% 4164
(b)
£
income 47000
additional 13000
van leasing -4400
replacemen -2800
trading in 52800
less: PA -12570
40230
income tax liability £

40230 20% 8046
class 2 164
class 4 37700 10.25% 3864

2530 3.25% 82
class 4 NIC 3946
employed self employed

salary 44000 0
trading in 0 52800
NIC -4164 -4110
income tax -5846 -8046
pension -2200 -2400
disposal i 31790 38244
6454
(a)
£
715500
dep 11760
amortisati 1300 333333.3
lease -806
rent 9800 special rate pool allowances
chargeable 104300 £ £
interest -16400
capital all -440667 548000
less:AIA -333333 333333
384787
214667
corporation73109.53
107334
107334
440667
£
896700
21660
9000
-7380
-9824
910156
chargeable 60381
less: QCD -6800
less: losses -12500 TWDV bf
951237 additions
not qualifying for AIA:
car
disposal
disposal of special rate pool
WDA
capital allowance

£ £ £ £
56700 13433
ying for AIA:
13700
-17200
f special rate pool -9300
53200 4133
-9576 9576
-248 248
9824
90600
-25519
65081
less: capita -4700
60381
total ic
40000 49300
3599
40000 52899
-22000 -29094
18000 23805
1714
18000 25519
£
trading los -141200
advertisin -7990
premium -2296
capital all -4784
-156270
working
capital allowances

£ £ £ £
additions: not qualifying for AIA
car 1 8300
car 2 12300
car 3 18800
additions
qualifying for super deduction
laptop 1200
20600 18800

property income
£
rent 4200
-2100
-5900
property i -3800
loss on disposal
£
21400
-26200
-4800
(b)
£
pbt 305500
dep 14700
Qcd 1100
gift to cus 3500
impairment 0
leasing 1890
breach 6400
renewal of 0
interest 0
333090
less: qcd -1100
331990
corporation 63078.1
disposal 150000
less: cost -38004
(c) Cedar
111996
number indexed cost capital loss -8800
£ trading los -20800
20000 24800 less: loss re -19700
20000 24800
5000 5750 62696
25000 30550
7454
25000 38004
£
20175
4500
1250
3269
-4553
24641
cash basis
£
39635
-16777
22858
cash basis 4200
dep 0
car expens -5250
interest -1085
furniture -3500
17223
most beneficial is using cash basis

(a)
£
revenue 64500
food -25000
plus privat 7800
car -4750
equipment 0
42550
(b)
£
74500
running co -1800
equipment 0
capital all -1862
less; -16250
54588

Tax Ek Prem Katha

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Tax Ek Prem Katha

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Jason

(b) initial plc

company pension scheme

(c) revised corporation tax liability would be of 15200

personal pension scheme

£ rate band extension

income tax liability 35807

4 76990 19% 14628.1 corporation tax liability

(a) revised income tax liability

income tax 165000

revised inc 170234

409600 1950 411550

taxable in 409600 1950 411550

income tax liability

income tax liability if he makes 144280

rate band extension

business is run as a limited company

paul's income tax liability

non savings income dividends total

8000 135270 143270

income tax liability

income tax 39654

no NIC would be calculated because the amount is 8000

if paul runs business as a sole trader

income tax 63710

self emplo 75350

employment 1 aug 2022

self employment 1 feb 2023

self emplo 29500

non savings income

income tax liability

income tax 11578

capital gains tax liability

net gains 34900

total inco 323378

allowable deduction 1625

non savings income savings income dividends

76113 1260 5800

taxable income 63543 1260 5800

income tax liability

income tax liability 19464

workings income tax payable 334

employment income 68738

property income 7375

employment with red plc

income tax 4686

class 1 NIC 3104

income tax 4272

class 2 NIC 164

(a) daniel's trading income

1st may 2022 to 31st october 2022

1st november 2022 to 5th april 2023

total tradi 30750

taxable ben 308

loss relief 2021/22 -20600

loss carrie 32800

(a) the contract is for a limited time

(b) he is treated as a self employed

income tax 4766

(ii) class 1 employee NIC would be payable

he would have to pay additional NIC of 205

taxable ben 8350