Scribd Logo
Upload

Welcome to Scribd!

  • Ray, Shanira

    Uploaded by

    Abid Ali
    6 views2 pages
    The document provides tax advice regarding gifts made by Ray's spouse Shanira. It summarizes that: 1) A gift of a house valued at £360,000 that was purchased for £280,000 would result in a chargeable gain of £67,700 subject to capital gains tax of £18,956. 2) A gift of a painting valued at £7,000 that was purchased for £15,000 would create a capital loss of £8,000. 3) Gifts of shares should be divided to utilize the £12,300 annual capital gains tax exemption and £8,000 capital loss for the tax year 23/24 without creating any tax liability. 2,

    Original Description:

    Original Title

    4. Ray, Shanira,

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides tax advice regarding gifts made by Ray's spouse Shanira. It summarizes that: 1) A gift of a house valued at £360,000 that was purchased for £280,000 would result in a chargeable gain of £67,700 subject to capital gains tax of £18,956. 2) A gift of a painting valued at £7,000 that was purchased for £15,000 would create a capital loss of £8,000. 3) Gifts of shares should be divided to utilize the £12,300 annual capital gains tax exemption and £8,000 capital loss for the tax year 23/24 without creating any tax liability. 2,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views2 pages

    Ray, Shanira

    Uploaded by

    Abid Ali
    The document provides tax advice regarding gifts made by Ray's spouse Shanira. It summarizes that: 1) A gift of a house valued at £360,000 that was purchased for £280,000 would result in a chargeable gain of £67,700 subject to capital gains tax of £18,956. 2) A gift of a painting valued at £7,000 that was purchased for £15,000 would create a capital loss of £8,000. 3) Gifts of shares should be divided to utilize the £12,300 annual capital gains tax exemption and £8,000 capital loss for the tax year 23/24 without creating any tax liability. 2,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Pg 57, 242

    Memorandum

    Client: Ray

    From: Tax Senior

    Subject: Tax advice on Ray’s unincorporated business, Shanira’s gifts, and Kelly’s income
    tax issues

    Part (b):

    Gift of house: (22/23)

    MV of gift 360000

    (Cost) (280000)

    Gain 80000

    Annual Exemption (12300)

    Chargeable gain 67700

    CGT @ 28% 18956

    No double taxation relief will be available on the gift of house since there is no taxation on gains in the
    country of xyz.

    CGT is paid on 31 Jan after the end of fiscal year. So, the CGT payable date will be 31 Jan 24.

    Gift of Painting: (23/24)

    Market Value 7000

    (Cost) (15000)

    Capital Loss (8000)

    Gift of shares:

    MV of shares (7400 * 9.2) 68080

    Cost (W1) (7400 * 1.6) (11840)

    Gain 56240

    Gain per share 7.6


    Working 1:

    Value of shares in Beem Plc (3700) 12960

    Per share purchase price 3.6

    Gain on takeover,

    7400 shares in solaris (8.4 * 7400) 62160

    Cash 14800

    76960

    Value received against a share of beem plc 20.8

    Gain/share of beem chargeable at the time of takeover 4

    Gain/share of beem deferred ((62160-12960)/3700) 13.2

    Gain/share of solaris deferred ((62160-12960)/7400) 6.6

    New cost per share of solaris plc ((62160/7400)-6.6) 1.8

    Gift of shares should be divided into two gifts such that the loss from the gift of painting and annual
    exemption of CGT is fully used for tax year 23/24 without creating any tax liability.

    Number of shares in solaris plc that can be gifted without any CGT liability are:

    Annual exempt amount 12300

    Loss on gift of painting 8000

    20300

    Number of shares (20300 / 7.6) 2671

    2671 shares in solaris plc can be gifted in tax year 23/24 without creating any CGT liability.

    Inheritance Tax Implications:

    There is no inheritance tax charged on gifts between spouses or civil partners. However, the gift of house
    was before marriage and hence will be considered as potentially exempt transfer and no life time tax will
    arise on the gift of house.

    You might also like