She sometimes _____ a taxi to school

(b) Write a letter to Joanne setting out the value added tax (VAT) registration requirements and advising on

whether or not she should or could register for VAT and if registered if she could recover the VAT suffered on

the consultancy fees and computer purchased in October 2005. (7 marks)

(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash she could receive

on incorporation, without triggering a capital gains tax (CGT) liability. (3 marks)

(c) Assuming that she will survive until July 2009, advise on the lifetime inheritance tax (IHT) planning

measures that could be undertaken by Debbie, quantifying the savings that can be made. (7 marks)

For this question you should assume that the rates and allowances for 2004/05 apply throughout.

Mary Lou is a 22-year old student at Wilson College.She earned $4,300 at a summer job, which is less than half of her support.I.Mary Lou can claim a $500 family tax credit for herself even if her parents claim a $500 family tax credit as a dependent.II.Because Mary Lou is a full-time college student, and she provides less than half of her own support, her parents can claim a $500 family tax credit because she is their dependent.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

A.say

B.speak

C.tell

D.talk

A.always

B.sometimes

C.seldom

D.never

A.If he carries on driving like that, he will end up dead

B.Some researchers think most American people would end up to lose under the new tax plan

C.She fled with her family during the war and ended up in a remote village

D.If you do not study for the exam, you will definitely end up with a poor score

4 Assume today’s date is 5 February 2006.

Joanne is 37, she was born and until 2005 had lived all her life in Germany. She recently married Fraser, aged 38,

who is a UK resident, but who worked briefly in Germany. They have no children.

The couple moved to the UK to live permanently on 9 October 2005. Joanne was employed by an American company

in Germany, and she continued to work for them in the UK until the end of November 2005. Her earnings from the

American company were ￡5,000 per month. Joanne has not remitted any of the income she earned in Germany prior

to her arrival in the UK.

Joanne resigned from her job at the end of November 2005. The company did not hold her to the three months notice

stipulated in her contract, but still paid her for that period. In total, Joanne paid ￡4,200 in UK income tax under PAYE

for the tax tear 2005/06.

Joanne also wishes to sell the shares she holds in a German listed company. The shareholding cost the equivalent of

￡3,500 in September 1986, and its current value is ￡21,500. She intends to sell the shares in March 2006 and to

invest the proceeds from the sale in the UK. Joanne has made no other capital disposals in the year.

Prior to her leaving employment, Joanne investigated the possibility of starting her own business providing a German

translation service for UK companies, and took some advice on the matter. She paid consultancy fees of ￡5,000

(excluding value added tax (VAT)) and bought a computer for ￡2,000 (excluding VAT), both on 23 October 2005.

Joanne started trading on 1 December 2005. She made sales of ￡2,000 in December, and estimates that her sales

will rise by ￡1,000 every month to a maximum of ￡7,000 per month. Joanne believes that her monthly expenses of

￡400 (excluding VAT) will remain constant. Her year end will be 31 March, and the first accounts will be drawn up

to 31 March 2006.

Although Joanne has registered her business for tax purposes with the Revenue, she has not registered for VAT and

is unsure what is required of her in this respect.

Required:

(a) State, giving reasons, whether Joanne will be treated as resident or non-resident in the UK for the year of

assessment 2005/06, together with the basis on which her income and gains of that year will be subject to

UK taxation. (3 marks)

A.anything

B.everything

C.sometimes

D.some