2

Question 1

Letting relief is…

Answer 1

LOWER of:

a) PPR relief
b) gain relating to letting: (m let/m blocked)*gain
c) 40,000

Question 2

Normal expenditure is…

Answer 2

A) paid out of income

b) left w/ sufficient income to maintain lifestyle
c) regular pattern of spending

Question 3

Fall in value relief goes…

Answer 3

Before death NRB!

Question 4

Admin costs on houses (death estate)

Answer 4

Restricted to 5%

Question 5

Related property (death estate)

Answer 5

HIGHER of:

a) ignoring related property
b) including related property

Question 6

Valuation of shares (death estate)

Answer 6

LOWER of:

a) marked bargins
b) 1/4 up rule

Question 7

NIC Class 1b

Answer 7

1) gross up gift/entertainment by tax band

2) tax gross amount by 13.8%

Question 8

Chattle rules:
Gain>6k
Cost <6k

Answer 8

gain restricted to: 5/3 x gain

Question 9

Chattle rules:
Gain<6k
Cost >6k

Answer 9

Gain fixed at 6k

Question 10

SDLT Leases

Answer 10

SDLT payable on premium (>150k) + net present value of future lease rental

Question 11

Di minimus step 3…

Answer 11

fraction round UP!

Question 12

VAT Groups

Answer 12

51% control

Question 13

SD Groups

Answer 13

75% direct

75% indirect

Question 14

Group loss groups

Answer 14

75% indirect

75% direct

Question 15

VAT registration

Answer 15

> 85k
Must register when sign contract/agree sales or 30 days before threshold breached
VAT charged starting from above date

Question 16

R+D, large company

Answer 16

a) (12%xRD expenditure) add to TTP proforma

b) deduct as tax credit from CT liability

Question 17

Capital R+D expenditure

Answer 17

100% FYA

Question 18

CT Payments/Augmented profit

Answer 18

1)AP: TTP + group div
2) large = 1.5m (x n/12 /51% group co)
extra large = 20m (x n/12 /51% group co)

Question 19

CT payment dates

Answer 19

Small/med: 9m + 1 day after AP

(Extra) Large: instalments, 14th day of 7m from start of AP