Selim Osmanoglu has been working as a Director at Helvetic Water SA an unlisted trading company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Selim Osmanoglu has been working as a Director at Helvetic Water SA an unlisted trading company in Switzerland which has an issued share capital of 100,000 £1 ordinary shares. He now wants to give some money and assets to his granddaughter, Aisha, and so recently sold two tranches of stock and gave her the cash. It is nearly the end of March 2020, the shares are valued at £3.20 each and Selim would like to give the rest of his shares to Aisha. Acquisitions: 1986: 2,000 shares at £1.50 each 1991: 5,000 shares at £2.75 each 20th February 2020: 2,500 shares at £2.05 each 3rd March 2020: 2,000 shares at £1.95 each Disposals: 2nd February 2020: 3,000 shares for £2.95 each 3rd March 2020: 3,000 shares for £2.10 each Required: (a) Calculate the net taxable gain relating to the two sales of shares in 2020 without applying any tax reliefs. (4 marks) (b) Write a letter to Selim advising him of the gain that would be taxable if he transferred the final tranche of shares to his daughter as a gift and explain how his circumstances allow him to reduce the immediate capital gains tax effects of that gift. (4 marks) (maximum 120 words) Selim Osmanoglu has been working as a Director at Helvetic Water SA an unlisted trading company in Switzerland which has an issued share capital of 100,000 £1 ordinary shares. He now wants to give some money and assets to his granddaughter, Aisha, and so recently sold two tranches of stock and gave her the cash. It is nearly the end of March 2020, the shares are valued at £3.20 each and Selim would like to give the rest of his shares to Aisha. Acquisitions: 1986: 2,000 shares at £1.50 each 1991: 5,000 shares at £2.75 each 20th February 2020: 2,500 shares at £2.05 each 3rd March 2020: 2,000 shares at £1.95 each Disposals: 2nd February 2020: 3,000 shares for £2.95 each 3rd March 2020: 3,000 shares for £2.10 each Required: (a) Calculate the net taxable gain relating to the two sales of shares in 2020 without applying any tax reliefs. (4 marks) (b) Write a letter to Selim advising him of the gain that would be taxable if he transferred the final tranche of shares to his daughter as a gift and explain how his circumstances allow him to reduce the immediate capital gains tax effects of that gift. (4 marks) (maximum 120 words)
Expert Answer:
Answer rating: 100% (QA)
a The net taxable gain on the shares disposed of in 2020 is 3000 b Dear Selim ... View the full answer
Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
Posted Date:
Students also viewed these finance questions
-
Your friend, Manuel Rodriguez, has been working as a staff accountant for Williams Company, a small local manufacturing company. His job responsibilities to date have entailed several aspects of...
-
A company has an issued sham capital of 100 000 ordinary shares of $1 each. On 1 June, the company makes a bonus issue of one ordinary share for every four shares held. On 1 September, the company...
-
Bayliss Chandler Limited has an issued share capital of 20 000, split into 50p shares. In the year ending 31 May 2012 a dividend of 6p per share was paid. Ambrose owns 10% of the issued shares in...
-
Hanley asks his assistant to collect details on those costs included in the $21,000 indirect-cost pool that can be traced to each individual job. After analysis, Wigan is able to reclassify $14,000...
-
Xanetics, Inc., recently received a $ 150,000 special order from Lartech, Inc., for some customized equipment. A 50 percent deposit accompanied the order, with the remaining $ 75,000 payment to be...
-
Use the information in the table to work Problems. Column A is the year; the other columns are quantities sold in millions per year of compact discs (column B), music videos (column C), and video...
-
Estimate the time required for the water depth in the reservoir shown in Fig. P8. 98 to drop from a height of \(25 \mathrm{~m}\) to \(5 \mathrm{~m}\). The connections are threaded. Figure P8.98 500 m...
-
Yengling Company's payroll for the year is $593,150. Of this amount, $211,630 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Yengling Company's state is 2.9% on...
-
You are provided with the following information for Carla Vista Co., effective as of its April 30, 2025, year-end. Accounts payable $844 Accounts receivable 840 Accumulated depreciation-equipment 640...
-
Reconsider the Lockhead Aircraft Co. problem presented in Problem 16.15 regarding a project to develop a new fighter airplane for the U.S. Air Force. Management is extremely concerned that current...
-
Easy Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the closed on November 30, 2017, the end of the fiscal year, the balances of selected accounts from...
-
Consider a stack that is implemented as a linked list, as in Section 16.3.1. Describe two different scenarios in which race conditions can corrupt the data structure.
-
Design an XML document that describes a bank account.
-
How do you move the file pointer to the first byte of a file? To the last byte? To the exact middle of the file?
-
Add icons to the buttons of Exercise E20.1. Use a JButton constructor with an Icon argument and supply an ImageIcon. Data from exercise E20.1 Write an application with three buttons labeled Red,...
-
Write a DTD file that describes documents that contain information about countries: name of the country, its population, and its area. Create an XML file that has five different countries. The DTD...
-
Given the following differential equation 5 dy(t) + 6y(t) = u(t) dt The number of state variables for this system
-
For the following exercises, rewrite the sum as a product of two functions or the product as a sum of two functions. Give your answer in terms of sines and cosines. Then evaluate the final answer...
-
Maurice has two gilt shops. He does not keep full accounting records but is able to provide the following information for the year ended 31 March 2015. The list of balances at 1 April 2014 and 31...
-
Milquel was able to produce the following information concerning his business. What was the business's profit for the year? A. $36,000 B. $70,000 C. $104,000 D. $236,000 Capital 1 January 2014 100...
-
Jane runs a business selling ladies clothes. She has extracted the following balances from her books of account at 31 January 2014. Required Prepare Janes trial balance at 31 January 2014. Bank...
-
Given that the speed of sound waves in dry air is \(343 \mathrm{~m} / \mathrm{s}\), determine the wavelengths at the lower and upper ends of the audible frequency range \((20 \mathrm{~Hz}-20...
-
For the situation shown in Figure 17.16a, how many nodes are there along the line segment \(S_{1} S_{2}\) that connects the centers of the two sources? Data from Figure 17.16a (a) Both sources...
-
The minimum intensity audible to the human ear is called the threshold of hearing. For a \(1.0-\mathrm{kHz}\) sound wave, this threshold is approximately \(10^{-12} \mathrm{~W} / \mathrm{m}^{2}\)....
Study smarter with the SolutionInn App