5 Gloria Seaford is UK resident and ordinarily resident but is not domiciled in the UK.Glo

5 Gloria Seaford is UK resident and ordinarily resident but is not domiciled in the UK.

Gloria has owned and run a shop selling books, cards and small gifts as a sole trader since June 1992. She

purchased her current premises, which were built in 1990, in July 2005 for £267,000. Gloria is registered for value

added tax. Gloria will be 66 on 4 January 2007 and, with this in mind, on 1 November 2006 she started looking

for a buyer for the business so that she could retire.

Gloria has received an offer of £335,000 for the shop premises from Ned Skillet who intends to convert the building

into a restaurant. It can be assumed that the sale will take place on 28 February 2007 and that Gloria will cease to

trade on that day.

Gloria estimates that on 28 February 2007 she will be able to sell the shelving and other shop fittings to local

businesses for £1,400 (no item will be sold for more than cost). She has agreed to sell all stock on hand on

28 February 2007 to a competitor at cost plus 5%. This is expected to result in sales revenue of £8,300. The only

other business asset is a van that is currently used 85% for business purposes. The van is expected to be worth

£4,700 on 28 February 2007 and Gloria will keep it for her private use.

Gloria’s tax adjusted trading profit for the year ended 31 October 2006 was £39,245. The forecast tax adjusted

trading profit for the period ending 28 February 2007, before taking account of the final sale of the business assets

on that date and before deduction of capital allowances, is £11,500. Gloria has overlap profits brought forward of


The tax written down value on the capital allowance general pool at 31 October 2006 was £4,050. Gloria purchased

equipment for £820 in November 2006. The tax written down value of the van at 31 October 2006 was £4,130.

In 2006/07 Gloria will have a taxable retirement pension of £4,300 and bank interest of £13,500 credited to her

bank account.

On 1 November 2004 Gloria inherited the following assets from her aunt.


  • 悬赏:0 答案豆
  • 提问人:00****18
  • 发布时间:2018-04-17
(b) Compute Gloria’s total income tax and national insurance liability for 2006/07. (7 marks)
(c) (i) Compute Gloria’s capital gains tax liability for 2006/07 ignoring any claims or elections available toreduce the liability. (3 marks)
(ii) Explain, with reasons, the relief available in respect of the fall in value of the shares in All Over plc,identify the years in which it can be claimed and state the time limit for submitting the claim.(3 marks)
(d) Explain how Gloria would be taxed in the UK on the dividends paid by Bubble Inc and the capital gains taxand inheritance tax implications of a future disposal of the shares. Clearly state, giving reasons, whether ornot 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.



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