Capital Taxation Level 1

Question 1

What is the statutory basis for SDLT?

Answer 1

The Finance Act 2003

Question 2

What did the Duke of Buccleuch case set out?

Answer 2

Large estates should be ‘prudently lot’ to achieve the best possible price for the property.

Question 3

Lady Fox case - 3 key points are?

Answer 3

1) The property must be valued as it actually existed at the date of valuation.

2) Even if a prudent seller would likely make some changes or alterations to the proeprty before putting it up for sale.

3) The property is assumed to be capablefor sale in the open market even if in reality there are restrictions on sale that prevent it from being the case.

Question 4

Tell me about Wight and Moss v CIR (264 EG 935) 1982 case (Nellie Wight)

Answer 4

Provides us with important guidance on the valuation of undivided half-shares, where a co-owner was in occupation of the property at the valuation date.

Undivided half share in a dwelling house fell to be valued, following the death of one of the joint owener-occupiers.

The DV valued on the basis of the vacant possession valueof the house divided by two and then deducting 10%. The tribunal approved the DV’s approach though it increased the final deduction to 15%.

Percentage of 10 is derived from the decision in Cust.

Question 5

What is Annual Tax on Enveloped Dwellings?

Answer 5

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000