读趣百科

(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)

(c) The inheritance tax payable by Adam in respect of the gift from his aunt. (4 marks)

Additional marks will be awarded for the appropriateness of the format and presentation of the memorandum and

the effectiveness with which the information is communicated. (2 marks)

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

foreseeable future.

(c) On the assumption that the administrators of Noland’s estate will sell quoted shares in order to fund the

inheritance tax due as a result of his death, calculate the value of the quoted shares that will be available to

transfer to Avril. You should include brief notes of your treatment of the house and the shares in Kurb Ltd.

(9 marks)

Note: you should assume that the tax rates and allowances for the tax year 2006/07 apply throughout this

question.

(b) The tax relief available in respect of the anticipated trading losses, together with supporting calculations and

a recommended structure for the business. (16 marks)

(c) Explanatory notes, together with relevant supporting calculations, in connection with the loan. (8 marks)

Additional marks will be awarded for the appropriateness of the format and presentation of the schedules, the

effectiveness with which the information is communicated and the extent to which the schedules are structured in

a logical manner. (3 marks)

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

to 31 March 2007 apply throughout the question.

– you should ignore value added tax (VAT).