DH pic is a UK resident company which manufactures products for the oil industry. You have been

Fantastic news! We've Found the answer you've been seeking!

Question:

DH pic is a UK resident company which manufactures products for the oil industry. You have been provided with estimates of the results for the year to 31 March 2023, together with additional information which may have a bearing on the taxation liability of the company. The estimates are as follows:

Income: Trading profits Gross loan interest receivable

Rental income Chargeable gains Payments: Qualifying charitable donations £1.500.000 £20.000 £60.000 £25,000 £20.000

The loan interest receivable was in respect of a loan of £100,000 made by DH pic to a supplier.

2. DH pic received UK dividends of £117,000 during the year.

Required:

Calculate the estimated corporation tax liability of the company for the year ended 31 March 2023. (7 marks)

Part B Michael Johnson made the following disposals of capital items in the tax year 2022-23: 1. 15 June 2022:

A bronze statuette was sold for £8,500.

The statuette had originally cost £5,000 in May 2017 2 14 August 2022:

His entire holding of 12,000 shares in Dover pic, a UK trading company quoted on the stock exchange, was given to his friend Anna. The shares had cost Michael £7.600 in May 2017. On 14 August 2022 Dover pic shares had a closing price of 140p-152p.

Marked bargains during the day had been: 139p, 143p 148p and 155p.

3. 14 November 2022 Michael sold 10 acres of land for £180,000. He had originally purchased 25 acres of land on 30 June 2018 for £250,000. The market value of the unsold 15 acres as at 14 November 2022 was £150,000. 17 November 2022: Michael sold a vintage car for £50,000. It had cost £25,000 in May 1997. 5. 14 January 2023: A painting, which had cost f9,000 in June 2018, was destroyed in a fire. Michael received £ 19.000 from an insurance company and immediately reinvested £16.000 in a replacement painting. Michael had unused capital losses of £1,500 brought forward from the tax year 2021-22. Michael had taxable income for 2022-23 of £25,000.

Required:

Calculate Michael's taxable gain for the tax year 2022-23. (8 marks) Part C Richard Yap die on 25 June 2022, leaving an estate valued at £700,000 to his daughter Nicole. None of the transfers made on his death were exempt from Inheritance tax (IHT). Richard had made two transfers during his lifetime: Date 16 September 2016 13 August 2020 Transfers Gift of holiday Cottage in Kingsbridge Devon to his daughter Nicole for her birthday Amounts £250.000 Gift to discretionary trust for the benefits of his grandchildren Jovi and Kylie (Richard is responsible for paying the IHT due) £370,000 The personal executor was paid the below expenses on behalf of Richard's estate:

1) Funeral expenses of £3,000.

Calculate the Inheritance tax as results of Richard's deaths on 25 June 2022.