Personal and Corporate Taxation - AC60070E 2022-23

Word Count – 1000 not including Question 1.

A1 Assessment Brief:

Question 1.

Scenario:

Alex James is a UK resident taxpayer. He purchased a house in Manchester with a large garden
on 01.10.2000 for £180,000 and paid 2% stamp duty plus legal fees of £860 in addition to the
purchase price. He lived in the property up until 31/12/2013 when he rented the property out. On
the 01/09/2021, the letting ended, and he moved back into the house.

He sold a plot of land from the garden with planning consent on 31/01/2021 for £185,000. He
continued living in the house until he sold it on 01/12/2022 for £589,000. He incurred incidental
costs for the sale of the plot in 2021 for £4,260 and for the sale of the house in 2022 for £15,950.
His income for 2020/21 before gains was £19,000 and his income for 2022/23 before gains is
£13,900.

Expenditure on improvements to the property during her period of ownership were as follows:

2002 New Windows £4,500

2004 Driveway £6,800

2009 New bathroom £3,200

2010 Rear extension £72,000

2016 Architect fees and planning consent £6,000

2019 New Roof £4,500

2019 Demolition of part of extension £6,500

Total £ 103,500

Required:

1. Calculate the gain arising for 2020/21 and 2022/23 before any applicable reliefs. (20
Marks)

2. Calculate the taxable gain or loss for 2020/21 after application of applicable reliefs including
letting relief (10
Marks)

3. Calculate the chargeable gain for 2022/23 after application of applicable relief (10
marks)
 4. Advise Alex James what CGT (if any) is due for 2022/23 and when it is due for payment
with reference to the changes relevant to gains on residential property and letting relief that
came into effect from 6 April 2020. (10
Marks)

(Note: treat enhancement expenditure as shared proportionally between both disposals and round
off calculations for Principal Private Residence Relief and/or Letting relief to the nearest month.

Question 2.

Capital Gains Tax (GT) is a tax levied on gains made on the disposal of chargeable assets by
chargeable persons. There are available reliefs that could be used to reduce the tax payable.
Discuss any 4 reliefs with examples. (40
marks).

Presentation and referencing. (10 marks)

Total Marks Allocated to Assignment 1 (A1) - 100%

Learning outcomes covered:

LO1. Demonstrate systematic and comprehensive knowledge of the UK tax system backed
by research

LO2. Compute and critically explain the chargeable gains arising on individuals

Assignment Guidance Notes

Your assignment should be no longer than 1000 words in total for Question 2. Question 1 is
numerical.

Submission Criteria: 

 The report should be in MS Word. 

 Satisfactorily proofread prior to submission, and therefore the work must not contain
significant errors of spelling and grammar. 

 Ensure that font style to be Arial or Times New Roman and font size should be 12 for body
text. Font size of headings and subheadings should be consistent. 

Recommended Texts for Assignment

 Melville, A., 2021. Finance Act 2021. Harlow: Pearson

  Kaplan, 2020. Taxation (UK) – ACCA Study Text. Berkshire: Kaplan Publishing
 Kaplan, 2020. Taxation (UK) – ACCA Exam Kit. Berkshire: Kaplan Publishing

Marking Grid

Mark
70-100% 60-69% 50-59% Less than 40%
Awarded 40- 49%

Good Basic task

Task Highest Competent Inadequate, incompetent
Standard of coverage
Analysis quality task task task coverage or
task
coverage coverage understanding
coverage

Academic Excellent Well- Adequate Inadequate quality of

Standard use of developed use of Basic use of analysis, or limited use of
concepts analysis concepts concepts models

Use of Basic use of

Data and
relevant Limited use data
Highest
Referencing data, of data sources or
quality data Inadequate or irrelevant
(as comprehens sources, referencing
and data, poor referencing
applicable) ive limited
referencing
referencing referencing
of sources

Presentation Excellent Good quality Adequate Basic Poorly structured

presentatio of presentation Presentation presentation
n presentation only