(b) (i) Explain, by reference to Coral’s residence, ordinary residence and domicile position, how the rentalincome arising in respect of the property in the country of Kalania will be taxed in the UK in the tax year2007/08. State the strategy that Coral s

题目

(b) (i) Explain, by reference to Coral’s residence, ordinary residence and domicile position, how the rental

income arising in respect of the property in the country of Kalania will be taxed in the UK in the tax year

2007/08. State the strategy that Coral should adopt in order to minimise the total income tax suffered

on the rental income. (7 marks)

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更多“(b) (i) Explain, by reference to Coral’s residence, ordinary residence and domicile position, how the rentalincome arising in respect of the property in the country of Kalania will be taxed in the UK in the tax year2007/08. State the strategy that Coral s”相关问题

  • 第1题：

    (d) Explain how Gloria would be taxed in the UK on the dividends paid by Bubble Inc and the capital gains tax

    and inheritance tax implications of a future disposal of the shares. Clearly state, giving reasons, whether or

    not the payment made to Eric is allowable for capital gains tax purposes. (9 marks)

    You should assume that the rates and allowances for the tax year 2005/06 apply throughout this question.


    正确答案：
    (d) UK tax implications of shares in Bubble Inc
    Income tax
    Gloria is UK resident and is therefore subject to income tax on her worldwide income. However, because she is non-UK
    domiciled, she will only be taxed on the foreign dividends she brings into the UK.
    Dividends brought into the UK will be grossed up for any tax paid in Oceania. The gross amount is taxed at 10% if it falls
    into the starting or basic rate band and at 321/2% if it falls into the higher rate band. The tax suffered in Oceania is available
    for offset against the UK tax liability. The offset is restricted to a maximum of the UK tax on the dividend income.
    Capital gains tax
    Individuals are subject to capital gains tax on worldwide assets if they are resident or ordinarily resident in the UK. However,
    because Gloria is non-UK domiciled and the shares are situated abroad, the gain is only taxable to the extent that the sales
    proceeds are brought into the UK. Any tax suffered in Oceania in respect of the gain is available for offset against the UK
    capital gains tax liability arising on the shares.
    Any loss arising on the disposal of the shares would not be available for relief in the UK.
    In computing a capital gain or allowable loss, a deduction is available for the incidental costs of acquisition. However, to be
    allowable, such costs must be incurred wholly and exclusively for the purposes of acquiring the asset. The fee paid to Eric
    related to general investment advice and not to the acquisition of the shares and therefore, would not be deductible in
    computing the gain.
    Taper relief will be at non-business asset rates as Bubble Inc is an investment company.
    Inheritance tax
    Assets situated abroad owned by non-UK domiciled individuals are excluded property for the purposes of inheritance tax.
    However, Gloria will be deemed to be UK domiciled (for the purposes of inheritance tax only) if she has been resident in the
    UK for 17 out of the 20 tax years ending with the year in which the disposal occurs.
    Gloria has been running a business in the UK since June 1992 and would therefore, appear to have been resident for at least
    15 tax years (1992/93 to 2006/07 inclusive).
    If Gloria is deemed to be UK domiciled such that the shares in Bubble Inc are not excluded property, business property relief
    will not be available because Bubble Inc is an investment company.

  • 第2题：

    (b) (i) State the condition that would need to be satisfied for the exercise of Paul’s share options in Memphis

    plc to be exempt from income tax and the tax implications if this condition is not satisfied.

    (2 marks)


    正确答案：
    (b) (i) Paul has options in an HMRC approved share scheme. Under such schemes, no tax liabilities arise either on the grant
    or exercise of the option. The excess of the proceeds over the price paid for the shares (the exercise price) is charged to
    capital gains tax on their disposal.
    However, in order to secure this treatment, one of the conditions to be satisfied is that the options cannot be exercised
    within three years of the date of grant. If Paul were to exercise his options now (i.e. before the third anniversary of the
    grant), the exercise would instead be treated as an unapproved exercise. At that date, income tax would be charged on
    the difference between the market value of the shares on exercise and the price paid to exercise the option.

  • 第3题：

    1 Alvaro Pelorus is 47 years old and married to Maria. The couple have two children, Vito and Sophie, aged 22 and

    19 years respectively. Alvaro and Maria have lived in the country of Koruba since 1982. On 1 July 2005 the family

    moved to the UK to be near Alvaro’s father, Ray, who was very ill. Alvaro and Maria are UK resident, but not ordinarily

    resident in the tax years 2005/06 and 2006/07. They are both domiciled in the country of Koruba.

    On 1 February 2007 Ray Pelorus died. He was UK domiciled, having lived in the UK for the whole of his life. For the

    purposes of inheritance tax, his death estate consisted of UK assets, valued at ￡870,000 after deduction of all

    available reliefs, and a house in the country of Pacifica valued at ￡94,000. The executors of Ray’s estate have paid

    Pacifican inheritance tax of ￡1,800 and legal fees of ￡7,700 in respect of the sale of the Pacifican house. Ray left

    the whole of his estate to Alvaro.

    Ray had made two gifts during his lifetime:

    (i) 1 May 2003: He gave Alvaro 95 acres of farm land situated in the UK. The market value of the land was

    ￡245,000, although its agricultural value was only ￡120,000. Ray had acquired the land on

    1 January 1996 and granted an agricultural tenancy on that date. Alvaro continues to own the

    land as at today’s date and it is still subject to the agricultural tenancy.

    (ii) 1 August 2005: He gave Alvaro 6,000 shares valued at ￡183,000 in Pinger Ltd, a UK resident trading

    company. Gift relief was claimed in respect of this gift. Ray had acquired 14,000 shares in

    Pinger Ltd on 1 April 1997 for ￡54,600.

    You may assume that Alvaro is a higher rate taxpayer for the tax years 2005/06 and 2006/07. In 2006/07 he made

    the following disposals of assets:

    (i) On 1 July 2006 he sold the 6,000 shares in Pinger Ltd for ￡228,000.

    (ii) On 1 September 2006 he sold 2,350 shares in Lapis Inc, a company resident in Koruba, for ￡8,270. Alvaro

    had purchased 5,500 shares in the company on 1 September 2002 for ￡25,950.

    (iii) On 1 December 2006 he transferred shares with a market value of ￡74,000 in Quad plc, a UK quoted company,

    to a UK resident discretionary trust for the benefit of Vito and Sophie. Alvaro had purchased these shares on

    1 January 2006 for ￡59,500.

    Alvaro has not made any other transfers of value for the purposes of UK inheritance tax. He owns the family house

    in the UK as well as shares in UK and Koruban companies and commercial rental property in the country of Koruba.

    Maria has not made any transfers of value for the purposes of UK inheritance tax. Her only significant asset is the

    family home in the country of Koruba.

    Alvaro and his family expect to return to their home in the country of Koruba in October 2007 once Ray’s affairs have

    been settled. There is no double taxation agreement between the UK and Koruba.

    Required:

    (a) Calculate the inheritance tax (IHT) payable as a result of the death of Ray Pelorus. Explain the availability

    or otherwise of agricultural property relief and business property relief on the two lifetime gifts made by Ray.

    (8 marks)


    正确答案：

     

  • 第4题：

    (b) Draft a report as at today’s date advising Cutlass Inc on its proposed activities. The report should cover the

    following issues:

    (i) The rate at which the profits of Cutlass Inc will be taxed. This section of the report should explain:

    – the company’s residency position and what Ben and Amy would have to do in order for the company

    to be regarded as resident in the UK under the double tax treaty;

    – the meaning of the term ‘permanent establishment’ and the implications of Cutlass Inc having a

    permanent establishment in Sharpenia;

    – the rate at which the profits of Cutlass Inc will be taxed on the assumption that it is resident in the

    UK under the double tax treaty and either does or does not have a permanent establishment in

    Sharpenia. (9 marks)


    正确答案：
    (b) Report to the management of Razor Ltd
    To           The management of Razor Ltd
    From       Tax advisers
    Date         6 June 2007
    Subject    The proposed activities of Cutlass Inc
    (i) Rate of tax on profits of Cutlass Inc
    When considering the manner in which the profits of Cutlass Inc will be taxed it must be recognised that the system of
    corporation tax in Sharpenia is the same as that in the UK.
    The profits of Cutlass Inc will be subject to corporation tax in the country in which it is resident or where it has a
    permanent establishment. It is desirable for the profits of Cutlass Inc to be taxed in the UK rather than in Sharpenia as
    the rate of corporation tax in the UK on annual profits of ￡120,000 will be 19% whereas in Sharpenia the rate of tax
    would be 38%.
    Residency of Cutlass Inc
    Cutlass Inc will be resident in Sharpenia, because it is incorporated there. However, it will also be resident in the UK if
    it is centrally managed and controlled from the UK. For this to be the case, Amy and Ben should hold the company’s
    board meetings in the UK.
    Under the double tax treaty between the UK and Sharpenia, a company resident in both countries is treated as being
    resident in the country where it is effectively managed and controlled. For Cutlass Inc to be treated as UK resident under
    the treaty, Amy and Ben would need to ensure that all key management and commercial decisions are made in the UK
    and not in Sharpenia.
    Permanent establishment
    A permanent establishment is a fixed place of business, including an office, factory or workshop, through which the
    business of an enterprise is carried on. A permanent establishment will also exist in a country if contracts in the
    company’s name are habitually concluded there.
    The trading profits of Cutlass Inc will be taxable in Sharpenia if they are derived from a permanent establishment in
    Sharpenia even if it can be established that Cutlass Inc is UK resident under the double tax treaty.
    Double taxation
    If Cutlass Inc is UK resident but has a permanent establishment in Sharpenia, its trading profits will be subject to
    corporation tax in both the UK and Sharpenia with double tax relief available in the UK. The double tax relief will be the
    lower of the UK tax and the Sharpenian tax on the trading profits. Accordingly, as the rate of tax is higher in Sharpenia
    than it is in the UK, there will be no UK tax to pay on the company’s trading profits and the rate of tax on the profits
    would be the rate in Sharpenia, i.e. 38%.
    If Cutlass Inc is UK resident and does not have a permanent establishment in Sharpenia, its profits will be taxable in
    the UK at the rate of 19% and not in Sharpenia.

  • 第5题：

    4 Coral is the owner and managing director of Reef Ltd. She is considering the manner in which she will make her first

    pension contributions. In November 2007 she inherited her mother’s house in the country of Kalania.

    The following information has been extracted from client files and from telephone conversations with Coral.

    Coral:

    – 1972 – Born in the country of Kalania. Her father, who died in 2002, was domiciled in Kalania.

    – 1999 – Moved to the UK and has lived and worked here since then.

    – 2001 – Subscribed for 100% of the ordinary share capital of Reef Ltd.

    – Intends to sell Reef Ltd and return to live in the country of Kalania in 2012.

    – No income apart from that received from Reef Ltd.

    Reef Ltd:

    – A UK resident company with annual profits chargeable to corporation tax of approximately ￡70,000.

    – Four employees including Coral.

    – Provides scuba diving lessons to members of the public.

    Payments from Reef Ltd to Coral in 2007/08:

    – Director’s fees of ￡460 per month.

    – Dividends paid of ￡14,250 in June 2007 and ￡14,250 in September 2007.

    Pension contributions:

    – Coral has not so far made any pension contributions in the tax year 2007/08 but wishes to make gross pension

    contributions of ￡9,000.

    – The contributions are to be made by Reef Ltd or Coral or a combination of the two in such a way as to minimise

    the total after tax cost.

    – Any contributions made by Coral will be funded by an additional dividend from Reef Ltd.

    House in the country of Kalania:

    – Beachfront property with potential rental income of ￡550 per month after deduction of allowable expenditure.

    – Coral will use it for holidays for two months each year.

    The tax system in the country of Kalania:

    – No capital gains tax or inheritance tax.

    – Income tax at 8% on income arising in the country of Kalania.

    – No double tax treaty with the UK.

    Required:

    (a) With the objective of minimising the total after tax cost, advise Coral as to whether the gross pension

    contributions of ￡9,000 should be made:

    – wholly by Reef Ltd; or

    – by Coral to the extent that they are tax allowable with the balance made by Reef Ltd.

    Your answer should include supporting calculations where necessary. (9 marks)


    正确答案：

     

  • 第6题：

    (b) State the immediate tax implications of the proposed gift of the share portfolio to Avril and identify an

    alternative strategy that would achieve Crusoe’s objectives whilst avoiding a possible tax liability in the

    future. State any deadline(s) in connection with your proposed strategy. (5 marks)


    正确答案：
    (b) Gift of the share portfolio to Avril
    Inheritance tax
    The gift would be a potentially exempt transfer at market value. No inheritance tax would be due at the time of the gift.
    Capital gains tax
    The gift would be a disposal by Crusoe deemed to be made at market value for the purposes of capital gains tax. No gain
    would arise as the deemed proceeds will equal Crusoe’s base cost of probate value.
    Stamp duty
    There is no stamp duty on a gift of shares for no consideration.
    Strategy to avoid a possible tax liability in the future
    Crusoe should enter into a deed of variation directing the administrators to transfer the shares to Avril rather than to him. This
    will not be regarded as a gift by Crusoe. Instead, provided the deed states that it is intended to be effective for inheritance tax
    purposes, it will be as if Noland had left the shares to Avril in a will.
    This strategy is more tax efficient than Crusoe gifting the shares to Avril as such a gift would be a potentially exempt transfer
    and inheritance tax may be due if Crusoe were to die within seven years.
    The deed of variation must be entered into by 1 October 2009, i.e. within two years of the date of Noland’s death.

  • 第7题：

    (b) Provide the directors of Acrux Ltd with a detailed explanation of the maximum rate of tax that will be suffered

    on both the distributed and non-distributed profits of the non-UK resident investee companies where:

    (1) there is a double tax treaty between the UK and the country in which the individual companies are

    resident; and

    (2) there is no such double tax treaty.

    Note: you are not required to explain the position of the overseas resident branches. (6 marks)


    正确答案：
    (b) Rate of tax on profits of non-UK resident investee companies
    Undistributed profits
    The companies will be subject to tax in the countries in which they are resident; this is because of their residency status or
    because they have a permanent establishment in that country. Undistributed profits will not be taxed in the UK.
    The rate of tax on undistributed profits will therefore be the rate of tax in the country of residency of the respective companies.
    Distributed profits with double tax treaty
    The dividends received by Acrux Ltd from each of the overseas companies will be grossed up in respect of underlying tax (the
    overseas corporation tax paid on the distributed profits) because Acrux Ltd will own at least 10% of the overseas companies.
    The gross amount will then be included in Acrux Ltd’s profits chargeable to corporation tax.
    The treaty will provide double tax relief in the UK for the overseas tax suffered in respect of each dividend up to a maximum
    of the UK tax on the grossed up overseas dividend. As a result of the double tax relief, the overall rate of tax suffered will be
    the higher of the UK rate paid by Acrux Ltd and the overseas tax rate borne by the overseas company.
    Where the rate of overseas tax in respect of a particular dividend exceeds the rate of corporation tax in the UK, excess foreign
    tax will arise. This can be relieved, via onshore pooling, against the UK tax due on those dividends where the rate of tax in
    the UK exceeds the rate overseas. This will reduce the overall rate of tax suffered on the total overseas profits of the overseas
    companies as a whole.
    Distributed profits with no double tax treaty
    Where there is no double tax treaty, unilateral double tax relief will be available in the UK. This relief will operate in the same
    way as double tax relief under a double tax treaty such that the overall rate of tax on each dividend will be the higher of the
    UK rate paid by Acrux Ltd and the overseas rate borne by the overseas company. Relief via onshore pooling will also be
    available.

  • 第8题：

    (c) (i) Explain how Messier Ltd can assist Galileo with the cost of relocating to the UK and/or provide him with

    interest-free loan finance for this purpose without increasing his UK income tax liability; (3 marks)


    正确答案：
    (c) (i) Relocation costs
    Direct assistance
    Messier Ltd can bear the cost of certain qualifying relocation costs of Galileo up to a maximum of ￡8,000 without
    increasing his UK income tax liability. Qualifying costs include the legal, professional and other fees in relation to the
    purchase of a house, the costs of travelling to the UK and the cost of transporting his belongings. The costs must be
    incurred before the end of the tax year following the year of the relocation, i.e. by 5 April 2010.
    Assistance in the form. of a loan
    Messier Ltd can provide Galileo with an interest-free loan of up to ￡5,000 without giving rise to any UK income tax.

  • 第9题：

    2 Assume that today’s date is 1 July 2005.

    Jan is aged 45 and single. He is of Danish domicile but has been working in the United Kingdom since 1 May 2004

    and intends to remain in the UK for the medium to long term. Although Jan worked briefly in the UK in 1986, he

    has forgotten how UK taxation works and needs some assistance before preparing his UK income tax return.

    Jan’s salary from 1 May 2004 was ￡74,760 per annum. Jan also has a company car – a Jaguar XJ8 with a list price

    of ￡42,550 including extras, and CO2 emissions of 242g/km. The car was available to him from 1 July 2004. Free

    petrol is provided by the company. Jan has other taxable benefits amounting to ￡3,965.

    Jan’s other 2004/05 income comprises:

    ￡

    Dividend income from UK companies (cash received) 3,240

    Interest received on an ISA account 230

    Interest received on a UK bank account 740

    Interest remitted from an offshore account (net of 15% withholding tax) 5,100

    Income remitted from a villa in Portugal (net of 45% withholding tax) 4,598

    The total interest arising on the offshore account was ￡9,000 (gross). In addition, Jan has not remitted other

    Portuguese rental income arising in the year, totalling a further ￡1,500 (gross).

    Jan informs you that his employer is thinking of providing him with rented accommodation while he looks for a house

    to buy. The accommodation would be a two bedroom flat, valued at ￡155,000 with an annual value of ￡6,000. It

    would be made available from 6 August 2005. The company will pay the rent of ￡600 per month for the first six

    months. All other bills will be paid by Jan.

    Jan also informs you that he has 25,000 ordinary shares in Gilet Ltd (‘Gilet’), an unquoted UK trading company. He

    has held these shares since August 1986 when he bought 2,500 shares at ￡4.07 per share. In January 1994, a

    bonus issue gave each shareholder nine shares for each ordinary share held. In the last week all Gilet’s shareholders

    have received an offer from Jumper plc (‘Jumper’) who wishes to acquire the shares. Jumper has offered the following:

    – 3 shares in Jumper (currently trading at ￡3.55 per share) for every 5 shares in Gilet, and

    – 25p cash per share

    Required:

    (a) Calculate Jan’s 2004/05 income tax (IT) payable. (11 marks)


    正确答案：

     

  • 第10题：

    I worked at the hospital as a ___.

    A.residential

    B.resident

    C.residency

    D.residence


    参考答案：B

  • 第11题：

    单选题
    A

    To show how prisoners are now making the rules in the city’s jails.

    B

    To explain that the racial divisions of the country are reflected in local jails.

    C

    To prove that local jails are more dangerous than the state or federal jails.

    D

    To examine why local jails house criminals of all different types.


    正确答案： A
    解析：
    录音提到“Unfortunately, in local jails, criminals committing all levels of offense are housed in the same facilities and are often separated to avoid violence ...”以及“The LA County jail has a history of prisoner-on-prisoner murder”，由此可知地方监狱监禁着的各种犯罪分子比联邦监狱或州立监狱监禁着的犯罪分子更危险。
    【听力原文】
    　　Now, as we discussed last class, our current system of prisons is a legacy of the history of the nature of penal reform and the attempts at social reform at all levels of society in the 1960s. Currently, we have three types of prisons: federal, state, and local. Federal prisons house the most dangerous criminals and those who have committed serious crimes against the government. State prisons have different levels, with maximum security housing violent offenders such as murders and rapists while minimum security prisons house large numbers of white collar and minor offenders.
    　　Local jails, sometimes called county jails, house people awaiting trial and those serving very short sentences for minor infractions. Unfortunately, in local jails, criminals committing all levels of offense are housed in the same facilities and are often separated to avoid violence ... This isn’t always successful. An example would be the Los Angeles County jail, which is notorious for being divided along racial lines. White, black, Hispanic, and Asian prisoners are segregated, not by official policy, but by a jailhouse policy established by the prisoners themselves. Each group has a “shot caller”, a de facto leader whose job is to represent his group in any negotiations with the others in order to keep the peace or, at times, go to war. The LA County jail has a history of prisoner-on-prisoner murder, most of which is related to the rival street gangs of the city. While crime in the nation has gone down, our prisons still have one of the largest inmate populations in the world. Between 1990 and 2000, the number of prisoners has almost doubled from 1.2 million to just over two million. It may not surprise you that most of the nation’s prisoners are males. Females account for only six percent of all prisoners. In addition, the prisoners are not representative of America’s social groups. Blacks and Hispanics comprise two thirds of the prisoners yet are less than one third of the nation’s population. This is a telling statistic concerning the social woes of our nation’s minority groups. As for the type of crime, approximately half are in jail for violent crimes, including murder, rape, robbery, and assault. Most of the remaining prisoners are in jail for property crimes, which include burglary and various types of theft. Finally, there is a large and growing group that is incarcerated for drug offenses, whether manufacturing, selling, or using drugs.
    Questions 56 to 58 are based on the passage you have just heard.
    56. What aspect of crime does the professor mainly discuss?
    57. According to the professor, what happened to the size of the prison population in America between 1990 and 2000?
    58. Why does the professor discuss the Los Angeles County jail in detail?

  • 第12题：

    问答题
    Practice 1　　In general, investment in the United States will be in the form of a subsidiary. It is possible for a non-U. S. corporation to operate a branch office in the United States, but there are significant disadvantages to a branch, particularly with respect to its tax treatment.　　Branches of non-U. S. corporations are not subject to federal regulation or registration requirements. However, each state will require a “foreign” corporation to “qualify” before “doing business” in that state. A corporation will be considered “foreign” if it is organized under the laws of another country or another state, and so this is not a requirement imposed only on non-U. S. investors. “Doing business” is a technical term that implies a substantial presence in the state. This would include the ownership or leasing of real property, the maintenance of a stock of goods for local sale; employees and the like. Selling products to local customers, either directly or through an independent sales representative or distributor, would not in itself constitute “doing business.”　　The states actually exercise little control over the qualification process other than to ensure that the qualifying entity’s name is not confusingly similar to an already registered entity and that all registration fees and taxes are paid (qualification is basically a form of taxation). In most states, qualification for a non-U.S. corporation consists of a relatively easy application, a registration fee, and a notarized or legalized copy of the corporation’s articles of incorporation English or a certified translation).

    正确答案： 【参考译文】
    在美国投资一般是以子公司的形式。非美国公司可以以分支机构的形式在美国经营,但分支机构的形式有重大不利之处,特别是在税务待遇方面。
    非美国公司的分支机构不受联邦政府监管,也无登记注册的要求。然而,各个州都要求“外国”公司在该州“经营”之前先要“够资格”。如某公司是按照另一个国家或另一个州的法律组建的,则被认为是“外国”公司,因此这一要求并不仅仅针对非美国投资者。
    “经营”是一个技术术语,在某一个州经营意味着公司在该州是实际存在的,这包括在该州拥有或租赁房地产、保持用于向当地销售的存货、聘有雇员等等。直接或通过独立销售代表或经销商向当地客户销售产品,其本身并不构成“经营”。
    各州对公司资格审查的过程实际控制很少,更多的是确保这家合格实体的名称不与已登记注册的公司名称相近而造成混淆,并且确保该实体支付所有的登记注册费和税款(符合资格与否基本上是个赋税问题)。在大多数州,一家非美国公司要获得经营资格,须提出相对商言是比较容易的申请、支付登记注册费,以及提交经公证或认证公司章程(英文文本或经鉴证的英译本)。
    解析： 暂无解析

  • 第13题：

    (b) Calculate the inheritance tax (IHT) liability arising as a result of Christopher’s death. (11 marks)


    正确答案：

     

  • 第14题：

    (b) Peter, one of Linden Limited’s non-executive directors, having lived and worked in the UK for most of his adult

    life, sold his home near London on 22 March 2006 and, together with his wife (a French citizen), moved to live

    in a villa which she owns in the south of France. Peter is now demanding that the tax deducted from his director’s

    fees, for the board meetings held on 18 April and 16 May 2006, be refunded, on the grounds that, as he is no

    longer resident in the UK, he is no longer liable to UK income tax. All of the company’s board meetings are held

    at its offices in Cambridge.

    Despite Peter’s assurance that none of the other companies of which he is a director has disputed his change of

    tax status, Damian is uncertain whether he should make the refunds requested. However, as Peter is a friend of

    the company’s founder, Linden Limited’s managing director is urging him to do so, stating that if the tax does

    have to be paid, then Linden Limited could always bear the cost.

    Required:

    Advise Damian whether Peter is correct in his assertion regarding his tax position and in the case that there

    is a UK tax liability the implications of the managing director’s suggestion. You are not required to consider

    national insurance (NIC) issues. (4 marks)


    正确答案：
    (b) Peter will have been resident and ordinarily resident in the UK. When such individuals leave the UK for a purpose other than
    to take up full time employment abroad, they normally continue to still be so regarded unless their absence spans a complete
    tax year. But, where someone intends to live permanently abroad or to do so for a period of at least three tax years, they may
    be treated as non-resident and non-ordinarily resident from the day after the date of their departure, if they can provide
    evidence to HMRC of that intention. Selling a residence in the UK and setting up home abroad will normally constitute such
    evidence. However to retain non-resident status the intention must actually be fulfilled, and visits to the UK must not exceed
    182 days in any tax year or average more than 90 days per year over a period of four tax years. Given that Peter would appear
    to have several company directorships in the UK, it is possible that he might fail to satisfy the 90 day average ‘substantial
    visits’ rule.
    Even if Peter is classed as non-resident, any remuneration earned in the UK will still be liable to UK income tax, and subject
    to PAYE, unless it is for duties incidental to an overseas employment, which is unlikely to be the case for fees paid to a nonexecutive
    director for attending board meetings. Thus, income tax should still be deducted from the fees under PAYE. Where
    PAYE should have been deducted from a director’s emoluments and it has not been, but the tax is nevertheless accounted
    for by the company to HMRC, then to the extent that the tax is not reimbursed by the director, he will be treated as receiving
    a benefit equivalent to the amount of tax.

  • 第15题：

    (c) (i) Explain the inheritance tax (IHT) implications and benefits of Alvaro Pelorus varying the terms of his

    father’s will such that part of Ray Pelorus’s estate is left to Vito and Sophie. State the date by which a

    deed of variation would need to be made in order for it to be valid; (3 marks)


    正确答案：
    (c) (i) Variation of Ray’s will
    The variation by Alvaro of Ray’s will, such that assets are left to Vito and Sophie, will not be regarded as a gift by Alvaro.
    Instead, provided the deed states that it is intended to be effective for IHT purposes, it will be as if Ray had left the assets
    to the children in his will.
    This strategy, known as skipping a generation, will have no effect on the IHT due on Ray’s death but will reduce the
    assets owned by Alvaro and thus his potential UK IHT liability. A deed of variation is more tax efficient than Alvaro
    making gifts to the children as such gifts would be PETs and IHT may be due if Alvaro were to die within seven years.
    The deed of variation must be entered into by 31 January 2009, i.e. within two years of the date of Ray’s death.

  • 第16题：

    (c) Calculate and explain the amount of income tax relief that Gerard will obtain in respect of the pension

    contributions he proposes to make in the tax year 2007/08 and contrast this with how his position could be

    improved by delaying some of the contributions that he could have made in 2007/08 until 2008/09. You

    should include relevant supporting calculations and quantify the additional tax savings arising as a result of

    your advice.

    You should ignore the proposed changes to the bonus scheme for this part of this question and assume that

    Gerard’s income will not change in 2008/09. (12 marks)


    正确答案：

     

  • 第17题：

    (ii) Explain how the inclusion of rental income in Coral’s UK income tax computation could affect the

    income tax due on her dividend income. (2 marks)

    You are not required to prepare calculations for part (b) of this question.

    Note: you should assume that the tax rates and allowances for the tax year 2006/07 and for the financial year to

    31 March 2007 will continue to apply for the foreseeable future.


    正确答案：
    (ii) The effect of taxable rental income on the tax due on Coral’s dividend income
    Remitting rental income to the UK may cause some of Coral’s dividend income currently falling within the basic rate
    band to fall within the higher rate band. The effect of this would be to increase the tax on the gross dividend income
    from 0% (10% less the 10% tax credit) to 221/2% (321/2% less 10%).
    Tutorial note
    It would be equally acceptable to state that the effective rate of tax on the dividend income would increase from 0%
    to 25%.

  • 第18题：

    3 Spica, one of the director shareholders of Acrux Ltd, has been in dispute with the other shareholders over plans to

    expand the company’s activities overseas. In order to resolve the position it has been agreed that Spica will sell her

    shares back to the company. Once the purchase of her shares has taken place, the company intends to establish a

    number of branches overseas and acquire a shareholding in a number of companies that are resident and trade in

    overseas countries.

    The following information has been obtained from client files and meetings with the parties involved.

    Acrux Ltd:

    – An unquoted UK resident company.

    – Share capital consists of 50,000 ordinary shares issued at ￡1·90 per share in July 2000.

    – None of the other shareholders has any connection with Spica.

    The purchase of own shares:

    – The company will purchase all of Spica’s shares for ￡8 per share.

    – The transaction will take place by the end of 2008.

    Spica:

    – Purchased 8,000 shares in Acrux Ltd for ￡2 per share on 30 September 2003.

    – Has no income in the tax year 2008/09.

    – Has chargeable capital gains in the tax year 2008/09 of ￡3,800.

    – Has houses in the UK and the country of Solaris and divides her time between them.

    Investment in non-UK resident companies:

    – Acrux Ltd will acquire between 15% and 20% of each of the non-UK resident companies.

    – The companies will not be controlled foreign companies as the rates of tax in the overseas countries will be

    between 23% and 42%.

    – There may or may not be a double tax treaty between the UK and the overseas countries in which the companies

    are resident. Where there is a treaty, it will be based on the OECD model treaty.

    – None of the countries concerned levy withholding tax on dividends paid to UK companies.

    – The directors of Acrux Ltd are concerned that the rate of tax suffered on the profits of the overseas companies

    will be very high as they will be taxed in both the overseas country and in the UK.

    Required:

    (a) (i) Prepare detailed calculations to determine the most beneficial tax treatment of the payment Spica will

    receive for her shares; (7 marks)


    正确答案：

     

  • 第19题：

    (b) Prepare a reasoned explanation of how any capital gains tax arising in the UK on the sale of the paintings

    can be minimised. (2 marks)


    正确答案：
    (b) Minimising capital gains tax on the sale of the paintings
    Galileo will become resident and ordinarily resident from the date he arrives in the UK as he intends to stay for more than
    three years. Prior to that date he will be neither resident nor ordinarily resident such that he will not be subject to UK capital
    gains tax.
    Galileo should sell the paintings before he leaves Astronomeria; this will avoid UK capital gains tax completely.
    Tutorial note
    The gains would be taxable on the remittance basis if the paintings were sold after Galileo’s arrival in the UK. However, this
    would not help Galileo to minimise the capital gains tax due as he needs to bring the sales proceeds into the UK in order
    to purchase a house.

  • 第20题：

    (b) Calculate the amount of input tax that will be recovered by Vostok Ltd in respect of the new premises in the

    year ending 31 March 2009 and explain, using illustrative calculations, how any additional recoverable input

    tax will be calculated in future years. (5 marks)


    正确答案：
    (b) Recoverable input tax in respect of new premises
    Vostok Ltd will recover ￡47,880 (￡446,500 x 7/47 x 72%) in the year ending 31 March 2009.
    The capital goods scheme will apply to the purchase of the building because it is to cost more than ￡250,000. Under the
    scheme, the total amount of input tax recovered reflects the use of the building over the period of ownership, up to a maximum
    of ten years, rather than merely the year of purchase.
    Further input tax will be recovered in future years as the percentage of exempt supplies falls. (If the percentage of exempt
    supplies were to rise, Vostok Ltd would have to repay input tax to HMRC.)
    The additional recoverable input tax will be computed by reference to the percentage of taxable supplies in each year including
    the year of sale. For example, if the percentage of taxable supplies in a particular subsequent year were to be 80%, the
    additional recoverable input tax would be computed as follows.
    ￡446,500 x 7/47 x 1/10 x (80% – 72%) = ￡532.
    Further input tax will be recovered in the year of sale as if Vostok Ltd’s supplies in the remaining years of the ten-year period
    are fully vatable. For example, if the building is sold in year seven, the additional recoverable amount for the remaining three
    years will be calculated as follows.
    ￡446,500 x 7/47 x 1/10 x (100% – 72%) x 3 = ￡5,586.

  • 第21题：

    The above chart shows individual income tax in China. The tax free threshold is 3,500 RMB per month. The tax rates are divided into 7 brackets. The lowest rate is 3% for income between 3,501 and 5,000, while the highest rate is 45% for income over 80,000. Therefore, the higher our income is, the more tax we should pay. Tax, which can be used in public services such as education, road construction, public health and so on, is very important to our country. As we all know, tax makes up a great part of our country’s revenue, and the development of our country depends on it. From what has been discussed above, we can see that it is everyone’s legal duty to pay tax because taxes contribute to the country and create benefits for everyone. Those who try to evade taxation are sure to be punished. In short, paying tax is our responsibility to society.Decide if each of the following statements is TRUE (T) or FALSE (F).

    1. The purpose of the passage is to help people know the tips how to pay less tax.()

    2. According to the chart, if a person’s monthly is 3600 yuan, he doesn’t need to pay tax.()

    3. How much income tax a person pays each month depends on how much his/her income is.()

    4. The underlined word “evade” in the last paragraph means increase.()

    5. Personal income taxes are included in a government’s revenue.()


    参考答案：FFTFT

  • 第22题：

    下面哪一种是长沙地铁2号线的交换机型号？请选择（）

    • A、Coral IPX500
    • B、Coral IPX800
    • C、Coral IPX1000
    • D、Coral IPX3000

    正确答案:D

  • 第23题：

    问答题
    The planet's health depends on the survival of coral reefs.

    正确答案：
    解析：

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