问题详情

SectionB–TWOquestionsONLYtobeattempted
Yourclient,Eric,requiresadviceonthecapitalgainstaximplicationsarisingfromthereceiptofinsuranceproceedsandthedisposalofsomeshares,andtheinheritancetaxreliefsavailableinrespectofassetsinhisestateatdeath.HissonZakrequiresadviceregardingtheapplicationofthepersonalservicecompany(IR35)legislation.
Eric:
–IsUKresidentanddomiciled.
–Isahigherratetaxpayer.
–Isinillhealthandisexpectedtodiewithinthenextfewmonths.
Capitaltransactionsinthetaxyear2014/15:
–Ericmadenodisposalsforcapitalgainstaxpurposesinthetaxyear2014/15otherthanthosedetailedbelow.
–Ericreceivedinsuranceproceedsof￡10,000followingdamagetoavaluablepainting.
–EricsoldhalfofhisshareholdinginMalagaplcfor￡11·50pershare.
Damagedpainting:
–Ericpurchasedthepaintingfor￡46,000inJuly2012.
–ThepaintingwasdamagedinOctober2014suchthatimmediatelyafterwardsitsvaluefellto￡38,000.
–Theinsuranceproceedsof￡10,000werereceivedbyEricon1December2014.
–Erichasnothadthepaintingrepaired.
Malagaplcshares:
–Malagaplcisaquotedtradingcompanywith200,000issuedshares.
–80%ofMalagaplc’schargeableassetshavealwaysbeenchargeablebusinessassets.
–Ericwasgiven12,000sharesinMalagaplcbyhissisteron1April2010,whentheywerevaluedat￡126,000.
–Eric’ssisterhadpurchasedthesharesfor￡96,000on1March2009.
–GiftreliefwasclaimedinrespectofthegiftofthesharestoEricon1April2010.
–Ericpaidtheinheritancetaxarisinginrespectofthisgiftfollowinghissister’sdeathon1September2011.
–ErichasneverworkedforMalagaplc.
–Ericsold6,000sharesinMalagaplcon1March2015.
AssetsownedbyEricandapreviouslifetimegift:
–EricownsfarmlandintheUK,whichhasbeenleasedtoatenantfarmerforthelasttenyears.
–Thefarmlandhasamarketvalueof￡420,000andanagriculturalvalueof￡340,000.
–Eric’sotherassets,excludingtheremainingMalagaplcshares,arevaluedat￡408,000.
–Erichasmadeonlyonepreviouslifetimegift,of￡60,000cashtohissonZakon1July2009.
Zak:
–Isthesoleshareholder,directorandemployeeofYoyoLtd,acompanywhichprovidesconsultancyservices.
–Intheyearended31March2016,YoyoLtd’sgrossfeeincomefromrelevantengagementsperformedbyZakwillbe￡110,000.
–Inthetaxyear2015/16,Zakwilldrawasalaryof￡24,000anddividendsof￡50,000fromYoyoLtd.
–NeitherYoyoLtdnorZakhasanyothersourceofincome.
Required:
(a)CalculateEric’stotalafter-taxproceedsinrespectofthetwocapitalgainstaxdisposalsinthetaxyear2014/15.(6marks)
(b)(i)OntheassumptionthatEricdieson31March2016,adviseontheavailabilityandeffect(ifany),ofagriculturalpropertyrelief,businesspropertyreliefandquicksuccessionreliefinrespectofthefarmlandandtheretainedsharesinMalagaplc.
Note:Youarenotrequiredtopreparecalculationsforthispartofthequestion.(6marks)
(ii)Explain,withtheaidofcalculations,theimpactontheinheritancetaxliabilityarisingonEric’sdeathifEricdoesnotdieuntil1August2016.(3marks)
(c)CalculateZak’staxableincomeforthetaxyear2015/16ifthepersonalservicecompany(IR35)legislationweretoapplytothefeeincomereceivedbyYoyoLtd.(5marks)


请帮忙给出正确答案和分析，谢谢！