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Briefs

1. Which of the following are correct in respect of the date January 31, 1998?

a: It is a deadline for filing tax returns for 1996/97

b: Balancing payments will be due for tax year 1996/97

c: First payments on account will be due for tax year 1997/98

d: First instalment of assessment for 1997/98 will be due

2. James has owned shares for five years in a trading company quoted on the London Stock Exchange. He has control of the company and is planning to gift some of the shares to his daughter. What rate of business property relief for IHT purposes would apply to the gifted shares?

a: Nil

b: 100 per cent

c: 50 per cent

d: 30 per cent

3. A private limited trading company made a net distribution of £12,000. There are four shareholders. How much ACT must the company pay?

a: £2,500

b: £4,000

c: £3,000

d: None. ACT has been abolished from November 25, 1997

4. Three partners are discussing whether to purchase a property to be used by the business individually or to be held as a partnership asset. Which of the following are true?

a: CGT retirement relief will apply only if the property is owned personally by partners

b: IHT business property relief will apply at a higher rate if property is treated as a partnership asset

c: CGT rollover relief will apply only if the asset is owned by a partnership

d: Treating the property as a partnership asset will offer a better position in the event of bankruptcy of an individual partner

Answers: 1 – a, b and c; 2 – c; 3 – c; 4 – b and d.

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