Business Taxation
(UK Stream)
PART2WEDNESDAY 8 JUNE 2005QUESTION PAPER
Time allowed
3 hoursThis paper is divided into two sectionsSection A
BOTH questions are compulsory and MUST beanswered
Section B
THREEquestions ONLY to be answered
Tax rates and allowances are on pages 3–5Do not open this paper until instructed by the supervisorThis question paper must not be removed from the examinationhallThe Association of Chartered Certified Accountants
P a p e r 2 . 3 ( G B R )
This is a blank page.The question paper begins on page 3.
2
The following tax rates and allowances are to be used in answering the questions:Income Tax
%
Starting rate£1 – £2,02010Basic rate£2,021 – £31,40022Higher rate£31,401 and above40
Personal Allowance
Personal allowance£4,745
Car Benefit Percentage
The base level of CO
2
emissions is 145 grams per kilometre.
Car Fuel Benefit
The base figure for calculating the car fuel benefit is £14,400.
Personal Pension Contribution Limits
The maximum contribution that can be made without evidence of earnings is £3,600.
Age at startMaximumof tax yearPercentage
Up to 3517·536 – 4520.546 – 5025.551 – 5530.556 – 6035.561 or more40.5Subject to an earnings cap of £102,000
Capital Allowances
%Plant and machinery
Writing-down allowance25First-year allowance – Plant and machinery40First-year allowance– Information and communication technology equipmentFirst-year allowance –(until 31 March 2004)100First-year allowance– Low emission motor cars (CO
2
emissions of less than120 grams per kilometre)100For small businesses only: the rate of plant and machinery first-year allowance is increased to50%. This applies for the period from 1 April 2004 to 31 March 2005 (6 April 2004 to5 April 2005 for unincorporated businesses).
Long life assets
Writing-down allowance6
Industrial buildings
Writing-down allowance43[P.T.O.
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2-3gbr_2005_jun_q
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