Question

Section A Answer ALL questions 1. Which one of the following would not be a chargeable person for capital gains tax purposes? a) b) c) d) A registered charity Individuals who are resident in the UK The trustees of a trust or settlement The personal representatives of a deceased person 2. Giants Ltd sold one quarter of a parcel of land for £200,000 in June 2014. The land was bought for £500,000 in May 2010. The remainder was valued at £860,000 immediately after the part disposal. What will be the unindexed gain? a) b) c) d) £105,660 £106,550 £105,650 £105,560 3. Singh is an employee of Jets Ltd. Throughout the tax year 2014/15, Jets Ltd provided Singh with a mobile telephone that cost £100 and health Insurance at a cost to Jets Ltd of £80 per month. The rate of Class 1A National Insurance contributions during 2014/15 was 13.8%. Class 1A contributions payable by Jets Ltd during 2014/15 amounted to: a) b) c) d) £132.48 £165.60 £160.08 None of the above

Answer 1

Answer to question 1 : Correct answer is option (a) A registered charity

Explanation : Charities are exempt from Capital Gains Tax if the gain accrues to a charity

Answer to question 2 : Correct answer is option (a) 105660

Explanation : Total gain is 560000 (200000+860000-500000)

Unindexed gain = 56000 / 1060000 x 200000

Answer to question 3 : Correct answer is option (a) : 132.48

Explanation : 960 x 13.8 / 100 = 132.48