Finance Bill 2014: your essential guide

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. When do the rates of corporation tax for small companies and large companies align and what is the rate?

  2. Carberry Ltd has a year end of 31 December 2014. What is its maximum entitlement to the annual investment allowance for the accounting period?

  3. Miss Halfpenny is the managing director of a successful company and is provided with an Aston Martin car by her employer for the year ending 5 April 2015. This gives rise to a taxable benefit in kind of GBP 60,000. In order to mitigate the tax liability on this, she reimburses the company with the following amounts towards the running of the car - 30 November 2014 - GBP 25,000; 31 May 2015 - GBP 25,000. What will be her net taxable benefit in kind for the year ending 5 April 2015?

  4. The Seed enterprise investment scheme was introduced as a temporary measure in Budget 2012. When will the scheme come to an end?

  5. Rosie is a salaried member of a limited liability partnership (LLP). She has a capital contribution invested in the LLP of GBP 30,000 and receives a fixed annual salary of GBP 90,000. She has no voting rights over the control of the LLP. Under Finance Bill 2014, how would her income from the LLP be taxed?

  6. Wilfried is a non-UK domiciled employee of an investment bank based overseas in the Shamen Islands. He spends six months of the 2014/15 tax year working in the Shamen Islands and then the other six months working at the UK headquarters. He has separate contracts for his UK and Shamen Islands employments. His income and tax deducted are - UK Gross GBP 250,000 (Tax deducted GBP 80,000), Shamen Islands GBP 250,000; Tax deducted at source GBP 75,000.What will the UK tax liability be on his salary from the Shamen Islands, assuming full double tax relief is claimed for the foreign tax deducted at source, assuming a UK tax rate of 45 per cent?

  7. Esmerelda has income for the year ending 5 April 2015 of GBP 100,000. How much of her income will fall to be taxed within the basic rate band for 2014/15?

  8. On 3 April 2014, Rangel Ltd buys a residential property for GBP 6,000,000 which will be lived in by its managing director. The value of the property as at 1 April 2012 was GBP 3,000,000. How much stamp duty will Rangel have to pay on the purchase of the property?

  9. Mr Haines, a UK domiciled taxpayer, left the UK permanently to live in France on 5 October 2013, becoming permanently non-resident in the UK for tax purposes. During the 2013/14 tax year, his income and gains were as follows. Income UK salary from Hut Ltd (ceased 5 October 2013) GBP 50,000. French salary from Auteurs SARL (commenced 6 October 2013 - sterling equivalent) GBP 80,000. Chargeable gains 01/06/2013 Sale of UK property GBP 200,000 - 01/12/2013. Sale of antique sculpture GBP 100,000. How much of his income and capital gains would be liable to UK tax (before allowances)?

  10. Romulus Ltd is developing a new type of vacuum cleaner. It has been agreed with HMRC that the expenditure incurred on its development is qualifying expenditure for R&D tax credit purposes. During the year ending 31 March 2015, its results are as follows. Trading loss GBP 300,000. Qualifying R&D expenditure GBP 90,000. How much will the repayable tax credit and the trading loss carried forward be respectively?