In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.
What is the correct treatment of the estate income for individual income tax purposes?
A.The estate income is not taxable
B.The estate income will be taxed as occasional (ad hoc) income
C.The estate income will be taxed as other income
D.The estate income will be taxed as service income
第1题：
(ii) Advise Mr Fencer of the income tax implications of the proposed financing arrangements. (2 marks)
第2题：
(ii) Explain how the inclusion of rental income in Coral’s UK income tax computation could affect the
income tax due on her dividend income. (2 marks)
You are not required to prepare calculations for part (b) of this question.
Note: you should assume that the tax rates and allowances for the tax year 2006/07 and for the financial year to
31 March 2007 will continue to apply for the foreseeable future.
第3题：
PERSONAL INCOME TAX RATE (MONTHLY) (_VALID FROM SEPT. 1, 2011_) bracket grading tax rate (%) (TR) simple coefficient (SC) 1 less than 1,500 3 0 2 1,500-4,500 10 105 3 4,500-9,000 20 555 4 9,000-35,000 25 1005 5 35,000-55,000 30 2755 6 55,000-80,000 35 5505 7 Over 80,000 45 13505 NoteTax=(income -3500)*TR-SC The above chart shows individual income tax in China. The tax free threshold is 3,500 RMB per month. The tax rates are divided into 7 brackets. The lowest rate is 3% for income between 3,501 and 5,000, while the highest rate is 45% for income over 80,000. Therefore, the higher our income is, the more tax we should pay. ? Tax, which can be used in public services such as education, road construction, public health and so on, is very important to our country. As we all know, tax makes up a great part of our country’s revenue, and the development of our country depends on it. ? From what has been discussed above, we can see that it is everyone’s legal duty to pay tax because taxes contribute to the country and create benefits for everyone. Those who try to evade taxation are sure to be punished. In short, paying tax is our responsibility to society. DECIDE IF EACH OF THE FOLLOWING STATEMENTS IS TRUE (T) OR FALSE (F).
1. The purpose of the passage is to help people know the tips how to pay less tax.()
2. According to the chart, if a person’s monthly is 3600 yuan, he/she doesn’t need to pay tax.()
3. How much income tax a person pays each month depends on how much his/her income is.()
4. The underlined word “evade” in the last paragraph means increase.()
5. Personal income taxes are included in a government’s revenue.()
第4题：
听力原文：The tax return does not show accrued income.
(8)
A．The tax return is not shown in the income.
B．The income is not accurate in taxation.
C．The tax should be returned according to the income.
D．The tax return is not in accordance with the income that should be taxed.
第5题：
The above chart shows individual income tax in China. The tax free threshold is 3,500 RMB per month. The tax rates are divided into 7 brackets. The lowest rate is 3% for income between 3,501 and 5,000, while the highest rate is 45% for income over 80,000. Therefore, the higher our income is, the more tax we should pay. Tax, which can be used in public services such as education, road construction, public health and so on, is very important to our country. As we all know, tax makes up a great part of our country’s revenue, and the development of our country depends on it. From what has been discussed above, we can see that it is everyone’s legal duty to pay tax because taxes contribute to the country and create benefits for everyone. Those who try to evade taxation are sure to be punished. In short, paying tax is our responsibility to society.Decide if each of the following statements is TRUE (T) or FALSE (F).
1. The purpose of the passage is to help people know the tips how to pay less tax.()
2. According to the chart, if a person’s monthly is 3600 yuan, he doesn’t need to pay tax.()
3. How much income tax a person pays each month depends on how much his/her income is.()
4. The underlined word “evade” in the last paragraph means increase.()
5. Personal income taxes are included in a government’s revenue.()
第6题：
(b) (i) Explain, by reference to Coral’s residence, ordinary residence and domicile position, how the rental
income arising in respect of the property in the country of Kalania will be taxed in the UK in the tax year
2007/08. State the strategy that Coral should adopt in order to minimise the total income tax suffered
on the rental income. (7 marks)
第7题：
5 Crusoe has contacted you following the death of his father, Noland. Crusoe has inherited the whole of his father’s
estate and is seeking advice on his father’s capital gains tax position and the payment of inheritance tax following his
death.
The following information has been extracted from client files and from telephone conversations with Crusoe.
Noland – personal information:
– Divorcee whose only other relatives are his sister, Avril, and two grandchildren.
– Died suddenly on 1 October 2007 without having made a will.
– Under the laws of intestacy, the whole of his estate passes to Crusoe.
Noland – income tax and capital gains tax:
– Has been a basic rate taxpayer since the tax year 2000/01.
– Sales of quoted shares resulted in:
– Chargeable gains of ￡7,100 and allowable losses of ￡17,800 in the tax year 2007/08.
– Chargeable gains of approximately ￡14,000 each tax year from 2000/01 to 2006/07.
– None of the shares were held for long enough to qualify for taper relief.
Noland – gifts made during lifetime:
– On 1 December 1999 Noland gave his house to Crusoe.
– Crusoe has allowed Noland to continue living in the house and has charged him rent of ￡120 per month
since 1 December 1999. The market rent for the house would be ￡740 per month.
– The house was worth ￡240,000 at the time of the gift and ￡310,000 on 1 October 2007.
– On 1 November 2004 Noland transferred quoted shares worth ￡232,000 to a discretionary trust for the benefit
of his grandchildren.
Noland – probate values of assets held at death: ￡
– Portfolio of quoted shares 370,000
Shares in Kurb Ltd 38,400
Chattels and cash 22,300
Domestic liabilities including income tax payable (1,900)
– It should be assumed that these values will not change for the foreseeable future.
Kurb Ltd:
– Unquoted trading company
– Noland purchased the shares on 1 December 2005.
Crusoe:
– Long-standing personal tax client of your firm.
– Married with two young children.
– Successful investment banker with very high net worth.
– Intends to gift the portfolio of quoted shares inherited from Noland to his aunt, Avril, who has very little personal
wealth.
Required:
(a) Prepare explanatory notes together with relevant supporting calculations in order to quantify the tax relief
potentially available in respect of Noland’s capital losses realised in 2007/08. (4 marks)
第8题：
(ii) Analyse the effect of delaying the sale of the business of the Stiletto Partnership to Razor Ltd until
30 April 2007 on Clint’s income tax and national insurance position.
You are not required to prepare detailed calculations of his income tax or national insurance liabilities.
(4 marks)
(ii) The implications of delaying the sale of the business
The implications of delaying the sale of the business until 30 April would have been as follows:
– Clint would have received an additional two months of profits amounting to ￡6,920 (￡20,760 x 1/3).
– Clint’s trading income in 2006/07 would have been reduced by ￡13,015 (￡43,723 – ￡30,708), much of which
would have been subject to income tax at 40%. His additional trading income in 2007/08 of ￡19,935 would all
have been taxed at 10% and 22%.
– Clint is entitled to the personal age allowance of ￡7,280 in both years. However, it is abated by ￡1 for every ￡2
by which his total income exceeds ￡20,100. Once Clint’s total income exceeds ￡24,590 (￡20,100 + ((￡7,280
– ￡5,035) x 2)), his personal allowance will be reduced to the standard amount of ￡5,035. Accordingly, the
increased personal allowance would not be available in 2006/07 regardless of the year in which the business was
sold. It is available in 2007/08 (although part of it is wasted) but would not have been if the sale of the business
had been delayed.
– Clint’s class 4 national insurance contributions in 2006/07 would have been reduced due to the fall in the level
of his trading income. However, much of the saving would be at 1% only. Clint is not liable to class 4 national
insurance contributions in 2007/08 as he is 65 at the start of the year.
– Changing the date on which the business was sold would have had no effect on Clint’s class 2 liability as he is
not required to make class 2 contributions once he is 65 years old.
第9题：
The mansion and the estate are part of his().
A、legacy
B、heritage
C、hope
D、things
第10题：
During the current year, Eleanor receives land valued at $30,000 from the estate of her grandfather. Her grandfather's basis in the land was $8,000. Eleanor sells the land for $34,000 late in the year. Eleanor's gross income is:()。
A、$0
B、$4,000
C、$8,000
D、$16,000
E、$26,000