舊課選看習(xí)題集訓(xùn)jenny講義第

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Topic:Property e

Keyareas

Rental ecalculation(FC-25%/75%,recementrelief, ageallowance)

FHL

Jointlyownedproperty

MayrelatetoCGTorIHTCommonsituation

Spousetaxnning

FactorsinITcalculations

Pastpaper-Q20MonishaandHorner(12/13)(a)

(a)Monisha:

IsmarriedtoAsmat

Earnsasalaryof￡80,000peryearandrealiseschargeablegainsof￡6,300peryear

OwnsaUKinvestmentresidentialproperty,whichislettoshort-termtenantsAsmat:

Looksafterthecouple'schildrenandhasno eorchargeablegains

Expectstoreturntoworkon6April2026onanannualsalaryof￡18,000TheUKinvestmentpropertyownedbyMonisha:

Thepropertycost￡270,000andiscurrentlyworth￡300,000.

Thepropertywaspurchasedusinganinterest-onlymortgage.

Thelettingdoesnotqualifyasacommerciallettingoffurnishedholiday modation.Annual(cash) eandexpenditure: ￡

Rental e 24,000

Repairsandmaintenance 3,625

Mortgageinterest 8,100

Agent'sfees 2,000

Monishaspends￡1,800ayearonrecementfurniture.

Thepropertywillbesoldon5April2027andisexpectedtocreateachargeablegainof

￡100,000.

Proposalstoreducethecouple'stotaltaxliability:

Monishawillgivea20%interestintheinvestmentpropertytoAsmaton1April2021.

Thecouplewillensurethat,from6April2021,thelettingoftheinvestmentpropertywillqualifyasacommerciallettingoffurnishedholiday modation.

Fromthetaxyear2021/22onwards,Monishawillhaveexpenditureonnewfurnitureequaltothecurrentexpenditureonrecementfurniture.

Required

Calculatethetotaltaxsavinginthesixtaxyears2021/22to2026/27ifALLoftheproposalstoreducethecouple'staxliabilitiesarecarriedout.

Inrespectofthesecondproposal,youshouldassumethatthelettingwillqualifyasacommerciallettingoffurnishedholiday modationforthewholeoftheperiodofjointownershipandthatallbeneficialreliefsareclaimed.

Notes

Youshouldassumethatthetaxratesandallowancesforthetaxyear2019/20applytoalltaxyears.

Youshouldignoreinheritancetax.

Answer

(a)Monisha

Totaltaxsavingforsixyearsending5April2027

Before

AlltaxedonMonisha￡4,605×6

￡27,630

After

HalftaxedonMonisha ￡8,475×50%×40%×6

10,170

HalftaxedonAsmat First5years=0

the6thyear

￡8,475×50%×20%

848

Totaltaxsaved=￡27,630–(10,170+848)=￡16,612

Workings

Propertybusiness eliabilityofMonishaifproposalsnotcarriedout

￡

Rental e

24,000

Less:Allowableexpenses

￡(3,625+(8,100×25%)+2,000)

(7,650)

Recementfurniturerelief

(1,800)

Propertybusiness e

14,550

Taxonpropertybusiness e

￡14,550×40%

5,820

Less:Financecoststaxreducer

￡8,100×75%×20%

(1,215)

4,605

Propertybusiness eliabilityofAsmatifproposalsarecarriedout

￡

Rental e

24,000

Less:Allowableexpenses

￡(3,625+8,100+2,000)

(13,725)

Newfurnitureexpenditure

(1,800)

Propertybusiness e

8,475

Propertybusiness etaxableonAsmat

￡8,475×1/2=￡4,237

Forthefirstfivetaxyears,Asmatwillnothaveanyother esothathisshareofthepropertyewillbecoveredbyhis alallowanceandhis etaxliabilitywillbe￡0.

Inthefinaltaxyear,Asmatwillhaveemployment esothattheproperty ewillbetaxedat20%sohisliabilitywillbe￡4,237×20%=￡848

Capitalgainstax

Thegiftofthe20%interestinthepropertywilltakeceonanogain,nolossbasisbecauseMonishaandAsmatareamarriedcouple.ThegainonthesaleofthepropertywillthereforebeallocatedbetweenMonishaandAsmatintheratio80:20.Againonthesaleoffurnishedholiday modationqualifiesforentrepreneurs'relief.

CapitalgainstaxonsaleofpropertyifproposalsnotcarriedoutMonisha:￡(100,000-￡[12,000-6,300])×28% 26,404

Capitalgainstaxonsaleofpropertyifproposalsarecarriedout

Monisha:￡(80,000-￡[12,000-6,300])×10%

7,430

Asmat:￡(20,000-12,000)×10%

800

Totalcapitalgainstaxonsale

8,230

Capitalgainstaxsaved￡(26,404-8,230)=￡18,174

Summary

Totaltaxsaving

￡

etaxsaving

16,612

Capitalgainstaxsaving

18,174

Totaltaxsaving

34,786

Topic:overseasissue

Keyareas

Residenttests

Domicileanddeemeddomicile

Taximplications

Remittancebasisandremittancecharge

DoubletaxreliefCommonsituation

TaxnningforpeopleleavingorcomingtotheUK

Overseas e

PastpaperQ21Shut le(06/13)-(b)

(b)Theremittancebasisoftaxation:

Adviceistobeprovidedto4non-UKdomiciledindividuals.

NoneoftheindividualswasbornintheUK.

Eachofthe4individualsismorethan18yearsold.Detailsofthe4individuals:

Name

Lin

Nan

Yu

Tau

TYbecameUKresident

2006/07

2004/05

2009/10

2001/02

TYceaseUKresident

Stillresident

2017/18

Stillresident

Stillresident

O/s eandgainsfor19/20

￡39,200

￡68,300

￡130,700

￡90,000

O/s eandgainsremittedtotheUK

for19/20

￡38,500

Nil

￡1,400

￡40,000

提示：此處老師手寫板應(yīng)為

R&ND

NR

R&ND

R&D

Name

Lin

Nan

Yu

Tau

Required

Inrespectofthe4individualsforthetaxyear2019/20:

ExintheconditionsforanindividualtobedeemeddomiciledintheUK.

ExintheconditionsfortheremittancebasistoapplyandthuswhytheremittancebasisisavailabletoLinandYubutnottoNanandTau.

State,withreasons,theremittancebasischarge(ifany)thatLinandYuwouldhavetopayinorderfortheiroverseas eandgainstobetaxedontheremittancebasis.

ExinhowTau's eandgainswillbesubjecttoUKtax.

(9marks)

Answer

The4non-UKdomiciledindividuals

AnindividualisdeemeddomiciledintheUKiftheyeitherwerebornintheUKandhaveadomicileoforiginintheUKandareUKresidentintherelevanttaxyearoriftheyhavebeenUKresidentforatleast15outof20taxyearsimmedia yprecedingtherelevanttaxyear.

TheremittancebasisisavailabletoUKresidentindividualswhoarenotdomicilednordeemeddomiciledintheUK(unlessadeemeddomiciledindividualhasunremitted eandgainswhichdonotexceed￡2,000inwhichcasetheremittancebasisappliesautomatically).

NoneoftheindividualsareUKdomiciledandnonewerebornintheUKsothefirstconditionfordeemeddomicilecannotapplytoanyofthem.

TheremittancebasisisavailabletoLinandYubecausetheyareUKresidentin2019/20buthavenotbeenresidentforatleast15outof20taxyearsimmedia ypreceding2019/20.

TheremittancebasisisnotavailabletoNanasheisnotUKresidentin2019/20(andsohisoverseas eisnotliabletoUK etaxandnoneofhisgainsareliabletoUKcapitalgainstaxandthusremittanceisirrelevant).

TheremittancebasisisnotavailabletoTaubecausein2019/20heisbothUKresidentandUKdeemeddomiciledsincehehasbeenUKresidentforatleast15outof20taxyearsimmedia ypreceding2019/20(andtheremittancebasisdoesnotapplyautomaticallybecausehehasunremittedoverseas eandgainsofmorethan￡2,000).

Linhasunremittedoverseas eandgainsoflessthan￡2,000.Accordingly,theremittancebasiswillapplyautomatically,suchthattherewillnotbearemittancebasischarge.

Yuhasunremittedoverseas eandgainsofmorethan￡2,000.IfYumadeaclaimfortheremittancebasis,hewouldbeliablefortheremittancebasischargeof￡30,000becauseYuhasbeenresidentintheUKforsevenoftheninetaxyearspriorto2019/20.

TauwillbesubjecttoUKtaxonanarisingbasisonhisworldwide eandgains.Pastpaper-Q27PiquetandBuraco(12/14)(b)

Buraco'slinkswiththecountryofCanasta:

BuracowasborninCanastaandisdomiciledinCanasta.

BuracoownsahomeinthecountryofCanasta.

Buraco'sonly eisinrespectofinvestmentpropertiesinCanasta.

BuracofrequentlybuysandsellspropertiesinCanasta.Buraco'slinkswiththeUK:

Buraco'sex-wifeandtheir12yearolddaughtermovedtotheUKon1May2019.

BuracofirstvisitedtheUKinthetaxyear2019/20butwasnotUKresidentinthatyear.

BuracodidnotownahouseintheUKuntilhepurchasedoneon6April2020

BuracoexpectstoliveintheUKhouseforbetween100and150daysinthetaxyear2020/21.

Required

OntheassumptionthatBuracodoesnotsatisfyanyoftheautomaticoverseasresidencetestsnoranyoftheautomaticUKresidencetests,exinhowhisresidencestatuswillbedeterminedforthattaxyear.(5marks)

ExinwhyBuracowillnotbedeemeddomiciledintheUKinthetaxyear2020/21.(2marks)

OntheassumptionthatBuracoisresidentbutnotdeemeddomiciledintheUKinthetaxyear2020/21,statethetaximplicationsforhimofclaimingtheremittancebasisforthatyearandexinwhetherornottherewouldbearemittancebasischarge.(3marks)(Total=20marks)

Answer

(b)(i)Residencestatusforthetaxyear2020/21

AsBuracomeetsnoneoftheautomaticoverseastestsandnoneoftheautomaticUKtests(asstatedinthequestion),thesufficientties'testmustbeconsideredtodecideifheisUKresidentforthetaxyear2020/21.

AsBuracowasnotUKresidentinanyofthepreviousthreetaxyears,therelevanttiesare:

UKresidentclosefamily:BuracohasaminorchildwhoisUKresidentsothisisatie.

SubstantiveUKwork:BuracodoesnotworkintheUKsothisisnotatie.

AvailableUK modation:Buracohas modationavailabletohimforaconsecutiveperiodof91daysormoreinthetaxyearandinwhichhespendsoneormorenightsduringthetaxyearsothisisatie.

90daytie:IfBuracospentmorethan90daysintheUKineitherorbothoftheprevioustwotaxyears(inthiscaseonly2019/20isrelevantbasedontheinformationinthequestion)thiswouldbeatie.Moreinformationisneededonthispoint.

BuracothereforehastwodefiniteUKtiesandonepossibleUKtie.

DaysintheUK

PreviouslyR

NotPreviouslyR

<16

AutomaticallyNOTR

AutomaticallyNOTR

16–45

Rif4UKties

AutomaticallyNOTR

46–90

Rif3UKties

Rif4UKties

91–120

Rif2UKties

Rif3UKties

121–182

Rif1UKtie

Rif2UKties

>183

AutomaticallyR

AutomaticallyR

AsBuracowasnotpreviouslyresidentintheUKinanyofthepreviousthreetaxyears,ifhehastwotieshewillbeUKresidentforthetaxyear2020/21ifhespendsbetween121daysand150daysintheUK,butnotUKresidentifhespendsbetween100daysand120daysintheUK.

If,however,itisfoundthat