UNIVERSITY OF BOLTON WESTERN INTERNATIONAL COLLEGE FZE BA (HONS ...€¦ · BA (Hons) Accountancy Semester 1 Examination 2015/2016 Personal and Business Taxation Module No. ACC5003

OCD65

UNIVERSITY OF BOLTON

WESTERN INTERNATIONAL COLLEGE FZE

BA (HONS) ACCOUNTANCY

SEMESTER 1 EXAMINATION JANUARY 2016

PERSONAL AND BUSINESS TAXATION

MODULE NO: ACC5003 Date: Thursday 14th January 2016 Time: 4:00pm to 7:00pm INSTRUCTIONS TO CANDIDATES: There are 5 questions in this

examination 4 questions to be answered as follows:

Answer BOTH questions in

Section A Answer ONLY TWO questions

from Section B This is a closed book examination. You must hand in this exam paper

with your answer booklet.

Page 2 of 10 Western International College FZE BA (Hons) Accountancy Semester 1 Examination 2015/2016 Personal and Business Taxation Module No. ACC5003

SECTION A – ANSWER BOTH QUESTIONS FROM THIS SECTION

Question 1 Nord Ltd's summarised statement of comprehensive income for the year ended 31 December 2015 is as follows: £ Turnover 227,100 Cost of sales (100,000)

Gross profit 127,100 Expenses Depreciation (27,240) Gifts and donations (2,300) Impairment charge (1,600) Leasing costs (4,400) Other costs (205,160) Interest (6,400)

Loss before tax (120,000)

Additional information: Gifts and donations includes an amount of £720 of Christmas turkeys for all

employees at a cost of £60 each, gifts to customers £480 consisting of calendars

with an individual cost of £8 each and the company logo is embossed at the top of

each page, political donations of £420 and also donations amounting to £680 that

were paid to a registered UK charity.

Impairment charge includes an amount of £1,600 in relation to a trade debt that was

written off at the year-end in respect of an amount that had been owed since July

2015. The leasing costs are in respect of a motor vehicle that was leased on 1

January 2015 and has CO2 emissions of 145 grams per kilometre. Included within

other expenses is an amount of £5,100 in relation to a fine for a breach of company

regulations and £4,860 incurred for legal fees in relation to a trade dispute. All other

expenses are deemed to be fully allowable.

Interest is in respect of the company's 5% loan notes which were repaid on 30 April

2015. Interest of £9,600 was paid on 30 April 2015 and an accrual of £3,200 had

been provided for at 1 January 2015.

Question 1 continues over the page

PLEASE TURN THE PAGE…


Question 1 continued On 1 January 2015 the capital allowances written down values of the plant and

equipment main pool was £39,300 and the following purchases took place

throughout the year: 3 March 2015 Renault Clio cost £14,700 (Emissions of

124grams per kilometre), 7 April 2015, Citroen delivery van cost £28,300 (Emissions

of 162 grams per kilometre) and on the 12 November 2015 the company purchased

a Smart car at a cost of £12,400 (Emissions of 86 grams per kilometre).

This is the third year of trading for the company and the previous two years results are as follows: Year ended 31 December 2014 31 December 2013 £ £ Tax adjusted trading profit 47,900 56,600 Bank interest receivable 0 1,300 Qualifying charitable donations (330) (540) Required: Calculate Nord Ltd's adjusted trading loss for the year ended 31 December 2015

(include all items included in the additional information and enter a 'zero' for the

items that do not require adjustment) and (assuming that Nord Ltd claim relief for

any losses as early as possible) calculate the companies taxable profits for the years

ended 31 December 2014 and 2013. For any unrelieved losses state the amounts

and how this can be relieved.

Total 30 Marks End of Question 1 Question 2 is on the next page



Question 2 Damon was born on 8th August 1965, he is an employee of Techno Bats Ltd which is a company specialising in sonic sensors to detect Bat activity in caves. Damon has been employed at Techno Bats Ltd for several years where he is employed as a senior electronics specialist. The following information is available in respect of Damon's employment for the tax year 2015/16. a) During the tax year 2015/16 Damon was paid a monthly gross salary of £10,800.

b) In addition to his salary, Damon was paid the following performance related bonuses.

Amount Payment Date Entitlement Date In respect of the six month period

ended £4,600 25 April 2015 31 March 2015 31 December 2014 £8,100 20 August 2015 3 July 2015 30 June 2015 £2,900 15 April 2016 15 April 2016 31 December 2015

b) During the period 6 April 2015 to 31 August 2015 Damon used his own car for both

personal and business use, he was reimbursed by the Techno Bats Ltd at the rate of

55p per mile as follows:

Miles Normal daily travel between home and Techno Bats Ltd office 2,420 Travel between home and clients premises 8,580 Travel between home and temporary workplace (10 week placement)

2,860

Total mileage reimbursed by Techno Bats Ltd 13,860 d) During the period 1st September 2015 to 5 April 2016, Techno Bats Ltd provided Damon with a petrol powered car with a list price of £15,800. Techno Bats Ltd purchased the car for £14,500 (new) and the vehicle has CO2 emissions of 86 grams per kilometre, the company also covers the cost of all fuel. e) In February 2016, Damon spent 10 nights in a hotel in France on company business and was given a daily allowance of £10 per day to cover incidental personal expenses in respect of telephone calls to his family back in the UK. Question 2 continues over the page



Question 2 continued. f) For the whole of the 2015/16 tax year the company provided Damon with two mobile phones at a cost of £400 each, paid his gym membership of £500 and Damon was also provided with private medical insurance costing £1,000. g) Throughout the tax year 2015/16 Damon was also provided with living accommodation by his employer. The company had purchased the property in 2011 paying £142,000 and it was provided to Damon on 1 February 2014. Improvements to the property costing £14,400 were made during October 2011 with further improvements costing £9,800 being made in during August 2014. The annual value of the property is £4,600 and the official rate of interest is 3.35%. h) Damon has investments in shares in UK listed companies, he received dividends amounting to £13,500 during the 2015/16 tax year as well as interest on his cash savings of £8,000. Required Compute Damon's taxable income, personal allowance and the amount of tax payable for the 2015/16 tax year. Total 30 Marks End of Question 2 Question 3 is on the next page



SECTION B ANSWER TWO QUESTIONS ONLY FROM THIS SECTION

Question 3 You are a first class honours degree student from the University of Bolton and as a

result have been head hunted and employed by a prestigious firm of accountants in

their tax team. The tax partner has approached you as the firm has recently received

a query from one of their new clients, Mr Richard Tracy who is considering setting up

his own security company whereby they will provide security equipment as well as

detective services. Mr Tracy has a little knowledge of how to run a business but has

asked for some general tax advice as well as clarification of some things his friends

have told him surrounding depreciation and capital allowances, wages, expenses,

purchase of equipment, gifts to customers/employees, personal allowances,

dividends, interest on his savings in both the NSB and also the local high street

bank. He is also going to employ two members of staff and he is considering using

his own car in the business as well as providing vehicles for his staff. In addition his

friends have confused him even more by saying he "needs to wear some badges of

trade" and he has no idea what they mean.

Required:

Draft a letter on behalf of the tax partner to Mr Tracy outlining some general taxation

advice comparing both self-employment and Limited company; in addition address

each of the matters raised by Mr Tracy. Your letter is to be professional in style

covering all aspects of Income and Corporation tax (where you deem relevant),

however the tone of the letter should be in terms easily understood by Mr Tracy with

use of examples where necessary, however computation of tax and complex

adjustments must be excluded as this may confuse Mr Tracy who may then take his

business elsewhere.

Total 20 marks



Question 4

Magda Skiba owns three properties which are let out. The following information

relates to the tax year 2015–16:

Property one

This is a freehold house that qualifies as a trade under the furnished holiday letting

rules. Magda purchased this property on 1 July 2015 for £282,000. The purchase

price included £4,600 for furniture and kitchen equipment (which has been agreed

with HMRC can be written off as an expense in the period). Magda borrowed

£220,000 to purchase this property. During the period 1 July 2015 to 5 April 2016

she made loan repayments totalling £14,300, of which £12,700 was in respect of

loan interest. The property was let for 22 weeks at £425 per week during the period 1

July 2015 to 5 April 2016. Due to a fire, £12,200 was spent on replacing the roof of

the house during March 2016. Only £10,900 of this was paid for by Magda’s property

insurance.

During the tax year 2015–16 Magda drove 1,170 miles in her motor car in respect of

the furnished holiday letting business. She uses HM Revenue and Customs’

authorised mileage rates to calculate her expense deduction. The mileage was for

the following purposes:

Miles

Purchase of property 160

Running the business on a weekly basis 880

Property repairs 130

Other expenditure on this property for the period 1 July 2015 to 5 April 2016

amounted to £3,770, and this is all allowable.

Question 4 continues over the page



Question 4 continued

Property two

This is a leasehold shop that is let out unfurnished. The property was acquired on 1

May 2015 and was immediately let to a tenant, with Magda receiving a premium of

£45,000 for the grant of a five-year lease. During the period 1 May 2015 to 5 April

2016 Magda received four quarterly rental payments of £2,160 per quarter, payable

in advance

Property three

This is a freehold house that is let out unfurnished. The property was let from 6 April

2015 to 31 January 2016 at a monthly rent of £580. On 31 January 2016 the tenant

left, owing three months’ rent. Magda recovered two months of the outstanding rent

by retaining the tenant’s security deposit, but was unable to recover the balance.

On 1 March 2016 a new tenant paid Magda a security deposit of £1,200, being two

months’ rent, although the new tenancy did not commence until 15 April 2016.

During the tax year 2015–16 Magda paid loan interest of £9,100 in respect of a loan

that was taken out to purchase this property.

Other expenditure

The other expenditure on properties two and three for the tax year 2015–16

amounted to £36,240, and this is all allowable.

Furnished room

During the tax year 2015–16 Magda rented out one furnished room of her main

residence. During the year she received rent of £3,170, and incurred allowable

expenditure of £4,840 in respect of the room. Magda always uses the most

favourable basis as regards the tax treatment of the furnished room.

Required:

Calculate Magda Skiba’ s property business loss for the tax year 2015–16.

Note: Your answer should separately identify the furnished holiday letting loss.


State how any losses can be utilised.

Total 20 marks


Question 5

a) Andrew began trading on 1 October 2014, preparing accounts to 30 September

each year. Adjusted trading profits are £21,600 for the year to 30 September 2015

and £25,920 for the year to 30 September 2016.

i) What is the basis period for tax year 2015-16?

ii) What are the taxable profits for tax year 2015-16?

iii) What is the amount of overlap profits that arise on the commencement of

trade?

(6 Marks)

b) Adam begins trading on 1 January 2015, preparing accounts to 30 June. Adjusted

trading profits are £13,050 for the six months to 30 June 2015 and £19,800 for the

year to 30 June 2015.

i) What is the basis period for tax year 2015-16?

ii) What are the taxable profits for tax year 2015-16?

iii) What is the amount of overlap profits that arise on the commencement of

trade?

(6 Marks)

c) Michael ceased trading on 30 September 2015. Adjusted trading profits in the last

two accounting periods were £6,480 for the year to 31 December 2014 and £4,320

for the nine months to 30 September 2015. Overlap profits arising on the

commencement of trade were £1,000.

Required:

i) Compute the taxable profits for tax year 2015-16. (2 Marks)

ii) Provide brief explanations to your answers for part c(i) above (your explanation is

expected to include the computation of the opening, current, and closing year rules).


(6 Marks)

Total 20 marks

END OF QUESTIONS

Lymer & Oats 2015/16 Tables of tax rates and allowances

The current rates and allowances for income tax, corporation tax, capital gains tax, inheritance tax and other taxes are set out below.

Personal income tax rates

2015/16 2014/15 Increase £ £ £

Income tax allowances Personal allowance: Born after 6 April 1948 10,600 10,000 600 Born 6 April 1938 – 5 April 1948 10,600 10,500 100 Born before 6 April 1938 10,660 10,660 0

Income limit: personal allowances 100,000 100,000 0 Married couple’s allowance –

Born before 6 April 1935 8,355 8,165 190 Married couple’s allowance – minimum amount 3,220 3,140 80

Transferable tax allowance 1,060 0 1,060 Income limit for age-related allowances 27,700 27,000 700

Blind person’s allowance 2,290 2,230 60

Capital gains tax annual exempt amount Individuals, etc. 11,100 11,000 100 Capital gains tax standard rate 18% 18% 0 Capital gains tax higher rate 28% 28% 0 Entrepreneurs’ Relief limit 10 million 10 million 0 Entrepreneurs’ Relief rate 10% 10% 0

Inheritance tax threshold 325,000 325,000 0 (each if couple/partner) Inheritance tax rate 40% 40% 0 Lower rate (10%+ of estate left to charity) 36% 36% 0

Pension scheme allowances Annual allowance 40,000 40,000 0 Lifetime allowance 1,250,000 1,250,000 0

Lymer & Oats - Rate Card 2015/16

2

Taxable bands 2015/16

Non-savings Savings Dividends £0 – £5,000 –* 0%* –* £0 (or £5,000) – £31,785 20% 20% 10% £31,786 – £150,000 40% 40% 32.5% Over £150,000 45% 45% 37.5% *0% rate on savings only available up to £5,000 of taxable income if non-savings income does not exceed this sum

National Insurance Contributions Item 2015/16 2014/15 Class 1: Lower Earnings Limit – LEL (per week) £112 £111

Primary (employees) Threshold (per week) £155 £153 Secondary (employers) Threshold (per week) £156 £153 Upper Earnings Limit – UEL (per week – employees only) £815 £805 Upper Secondary Threshold (per week – <21yr old apprentices) £0 £815 Upper Accrual Point – UAP £770 £770 Employment allowance (per employer) £2,000 – Employee’s contributions 12% 12%

(£155pw to £815pw +2% over £815pw) Employee’s Contracted-out Rebate 1.4% 1.4%

Salary Related (LEL to UAP) Employer’s Contribution Rates 13.8% 13.8%

(all earnings over £156pw) Employer’s Contracted-out Rebate

Salary Related (LEL to UAP) 3.4% 3.4% Employer NIC allowance £2,000 £2,000 Class 1A and 1B 13.8% 13.8% Class 2: Self employed Contribution (per week) £2.80 £2.75

Small Profits Threshold (per annum) £5,965 £5,885 Class 3: Contribution (per week) (voluntary) £14.10 £13.90 Class 4: Contributions – Upper Profits Limit £42,385 £41,865

Contributions – Lower Profits Limit £8,060 £7,956 Contribution Rate 9.0% 9.0% (£8,060pa – £42,385pa then 2% over £42,385pa)

Lymer & Oats – Rate Card 2015/16

3

Tax credits:

Working tax credit

£ per year

Basic element 1,960.00 Couple and lone parent element 2,010.00 30 hour element 810.00 Disability element 2,970.00 Severe disability element 1,275.00

Childcare element: £ per week Maximum eligible cost for 2 or more children 300.00 Maximum eligible cost for 1 child 175.00 Max. percent of eligible costs covered 70%

Child tax credit £ per year

Family element 545.00 Child element (each child) 2,780.00 Disabled child element 3,140.00 Severe disabled child element 1,275.00

Tapering £

Income thresholds & withdrawal rates First income threshold 6,420.00 First withdrawal rate 41% First threshold for child tax credit 16,105.00 entitlement only (where no WTC claimed) Income disregard 5,000.00 Income fall disregard 2,500.00

Pension credit £

Standard Minimum income guarantee credit: (per week) Single 151.20 Couple 230.85 Capital: Amount disregard 10,000.00 Amount disregard – care homes 10,000.00 Deemed income: £1 per week for every £500 (or part thereof) in excess of these amounts


4

Car and fuel benefits in kind

CO2 Taxable % CO2 Taxable % CO2 Taxable % g/km Petrol Diesel g/km Petrol Diesel g/km Petrol Diesel 0(EV)

1 51 76 95

5 5 9 13 14

5 8 12 16 17

125 130 135 140 145

20 21 22 23 24

23 24 25 26 27

175 180 185 190 195

30 31 32 33 34

33 34 35 36 37

100 15 18 150 25 28 200 35 37 105 16 19 155 26 29 205 36 37 110 115 120

17 18 19

20 21 22

160 165 170

27 28 29

30 31 32

210+ 37 37

Round down to find the correct percentage. Van benefit charge – £3,150

Fuel benefit charge – £22,100 Van fuel benefit charge – £594

Approved private car mileage rates

Business Miles Allowance rate per mile

0 – 10,000 45p 10,000+ 25p

Excess payments over these rates are taxable. Shortfalls can be claimed as tax relief by the employee.

Corporation tax 2015/16

Band Rate £0 + 20%*

Tax fee saving accounts 2015/16 2014/15

ISA subscription limit £15,240 £15,000 Junior ISA subscription limit £4,080 £4,000 Child Trust Fund subscription limit £4,080 £4,000


5

VAT

after 1 April 2015 after 1 April 2014

Standard Rate 20% 20% Reduced Rate 5% 5% Annual Registration Limit £82,000 £81,000 De-registration Limit £80,000 £79,000 VAT Fraction – standard rate 1/6 1/6 Cash Accounting Scheme – max. turnover to join £1,350,000 £1,350,000 Annual Accounting Scheme – max. turnover to join £1,350,000 £1,350,000 Optional Flat Rate Scheme – max. taxable turnover (ex VAT) £150,000 £150,000

Environmental taxes

2015/16 Landfill tax:

Standard rate (per tonne) £82.60 (£80.00) Lower rate (inactive waste per tonne) £2.60 (£2.50)

Aggregates levy (per tonne) £2.00 (£2.00) Climate Change Levy: Electricity 0.554p/kwh Natural Gas 0.193p/kwh LPG 1.24p/kg Insurance Premium Tax: Standard Rate 6% Higher Rate 20%

HMRC interest rates Late Repayment Payment (%) (%) All taxes (unchanged since 29/9/09) 3.00 0.5

Average Official rate for 2015/16 3.00% Average Official rate for 2014/15 3.25% (These rates change occasionally – see the HMRC website for details)


6

Capital gains tax (Corporations only)

Retail prices index (January 1987 = 100.0)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1982 – – 79.44 81.04 81.62 81.85 81.90 81.90 81.85 82.26 82.66 82.51 1983 82.61 82.97 83.12 84.28 84.64 84.84 85.30 85.68 86.06 86.36 86.67 86.89 1984 86.84 87.20 87.48 88.64 88.97 89.20 89.10 89.94 90.11 90.67 90.95 90.87 1985 91.20 91.94 92.80 94.78 95.21 95.41 95.23 95.49 95.44 95.59 95.92 96.05 1986 96.25 96.60 96.73 97.67 97.85 97.79 97.52 97.82 98.30 98.45 99.29 99.62 1987 100.0 100.4 100.6 101.8 101.9 101.9 101.8 102.1 102.4 102.9 103.4 103.3 1988 103.3 103.7 104.1 105.8 106.2 106.6 106.7 107.9 108.4 109.5 110.0 110.3 1989 111.0 111.8 112.3 114.3 115.0 115.4 115.5 115.8 116.6 117.5 118.5 118.8 1990 119.5 120.2 121.4 125.1 126.2 126.7 126.8 128.1 129.3 130.3 130.0 129.9 1991 130.2 130.9 131.4 133.1 133.5 134.1 133.8 134.1 134.6 135.1 135.6 135.7 1992 135.6 136.3 136.7 138.8 139.3 139.3 138.8 138.9 139.4 139.9 139.7 139.2 1993 137.9 138.8 139.3 140.6 141.1 141.0 140.7 141.3 141.9 141.8 141.6 141.9 1994 141.3 142.1 142.5 144.2 144.7 144.7 144.0 144.7 145.0 145.2 145.3 146.0 1995 146.0 146.9 147.5 149.0 149.6 149.8 149.1 149.9 150.6 149.8 149.8 150.7 1996 150.2 150.9 151.5 152.6 152.9 153.0 152.4 153.1 153.8 153.8 153.9 154.4 1997 154.4 155.0 155.4 156.3 156.9 157.5 157.5 158.5 159.3 159.5 159.6 160.0 1998 159.5 160.3 160.8 162.6 163.5 163.4 163.0 163.7 164.4 164.5 164.4 164.4 1999 163.4 163.7 164.1 165.2 165.5 165.6 165.1 165.5 166.2 166.5 166.7 167.3 2000 166.6 167.5 168.4 170.1 170.7 171.1 170.5 170.5 171.7 171.6 172.1 172.2 2001 171.1 172.0 172.2 173.1 174.2 174.4 173.3 174.0 174.6 174.3 173.6 173.4 2002 173.3 173.8 174.5 175.7 176.2 176.2 175.9 176.4 177.6 177.9 178.2 178.5 2003 178.4 179.3 179.9 181.2 181.5 181.3 181.3 181.6 182.5 182.6 182.7 183.5 2004 183.1 183.8 184.6 185.7 186.5 186.8 186.8 187.4 188.1 188.6 189.0 189.9 2005 188.9 189.6 190.5 191.6 192.0 192.2 192.2 192.6 193.1 193.3 193.6 194.1 2006 193.4 194.2 195.0 196.5 197.7 198.5 198.5 199.2 200.1 200.4 201.1 202.7 2007 201.6 203.1 204.4 205.4 206.2 207.3 206.1 207.3 208.0 208.9 209.7 210.9 2008 209.8 211.4 212.1 214.0 215.1 216.8 216.5 217.2 218.4 217.7 216.0 212.9 2009 210.1 211.4 211.3 211.5 212.8 213.4 213.4 214.4 215.3 216.0 216.6 218.0 2010 217.9 219.2 220.7 222.8 223.6 224.1 223.6 224.5 225.3 225.8 226.8 228.4 2011 229.0 231.3 232.5 234.4 235.2 235.2 234.7 236.1 237.9 238.0 238.5 239.4 2012 238.0 239.9 240.8 242.5 242.4 241.8 242.1 243.0 244.2 245.6 245.6 246.8 2013 245.8 247.6 248.7 249.5 250.0 249.7 249.7 251.0 251.9 251.9 252.1 253.4 2014 252.6 254.2 254.8 255.7 255.9 256.3 256.0 257.0 257.6 257.7 257.1 257.5 2015 255.4 256.7 257.1 258.0 258.5


7

Personal benefit rates 2015/16 2014/15

£ £ Basic Retirement Pension (per week):

– Single Person (based on own NIC) 115.95 113.10 – Single Person (based on spouse’s NIC) 69.50 67.80 – Non-contributory (over 80 pension) 69.50 67.80

Child Benefit (per week – from 5 April 2015): – First Eligible Child 20.70 20.50 – Each Extra Child 13.70 13.55 – Guardian allowance 16.55 16.35

Statutory Sick Pay (per week): – normally receive £112 per week or more 88.45 87.55

Statutory Maternity Pay (per week): Average Weekly Earnings of £112 or over

– Higher Weekly Rate (first 6 weeks) 90% of weekly earnings – Standard Rate (remaining 33 weeks) 139.58 138.18

Statutory Paternity/Adoption Pay (per week) 139.58 138.18 Job Seekers Allowance (income based – per week):

– Single Person (over 25) 73.10 72.40 – Married Couple (both over 18) 114.85 113.70

National Minimum Wage (per hour): – aged 21 and over From October 2015 – £6.70

From October 2014 – £6.50 Youth rate (from October 2015 – per hour):

– ages 18 to 20 £5.30 – ages 16 to 17 £3.87 – apprentice rate £2.80

Employment & Support Allowance (per week): – Single under 25 (first 13 weeks) 57.90 57.35 – Single 25 and over (first 13 weeks) 73.10 72.40 – Work related Activity Group (week 14+) 102.15 101.15 – Support Group (week 14+) 109.30 108.15

Universal Credit (per month): – Single under 25 251.77 249.28 – Single 25 and over 317.82 314.67 – Couple over 25 498.89 493.95 – Child element:

– First child 277.08 274.58 – Second/subsequent child 231.67 229.17

Benefit Cap (per week) – Single under 25 (no children) 500.00 – Single parent (children living with them) 500.00 – Single adult (no children living with them) 350.00

These rates are selected from a complex list of benefits available based on personal circumstances and therefore are provided in basic outline only. For a full list of benefits see the www.gov.uk website.


8

Duty rates

Duty Typical Item

Cigarettes 16.5% of retail packet of 20 price + £189.49 per thousand Cigars £236.37/kg packet of 5 Hand rolling tobacco £185.74/kg 25g

Beer 18.37p/litre pint 8.1p for low strength or an extra 5.48p for high strength apply

Wine >22% abv £27.66/litre pure alcohol 15%–22%abv £3.6437/litre 75cl bottle 5.5%–15%abv £2.7331/litre 4%–5.5%abv £1.158/litre 1.2%–4%abv 84.21p/litre

Sparkling wine 5.5%–8.5%abv £2.6461/litre 75cl bottle 8.5%–15%abv £3.5007/litre

Cider/Perry Still 1.2%–7.5%abv 38.87p/litre 75cl bottle 7.5%–8.5%abv 58.75p/litre Sparkling 1.2%–5.5%abv 38.87p/litre 75cl bottle 5.5%–8.5%abv £2.6461/litre Spirits £27.66/litre of 70cl bottle pure alcohol Fuel Duties (until 5 April 2016):

Unleaded/Heavy oil (Diesel)/Bio-diesel & bioethanol 57.95p/litre Bio-diesel for non-road use 11.14p/litre LPG 31.61p/kg Other Natural gas (road fuel) 24.7p/kg Fuel Oil 10.7p/litre Aviation gasoline 37.7p/litre

OCD65

ACC5003

Personal and Business Taxation

Tax Tables

2015/16 Additional Tax allowances

Capital allowances

Annual Investment Allowance:

1 January 2013 to 5 April 2014 - £250,000 of qualifying expenditure.

6 April 2014 to 31 December 2015 - £500,000 for qualifying expenditure

1 January 2016 onwards - £25,000 for qualifying expenditure

(Note: Cars do not attract the AIA and separate rules apply for those cars with emissions over

130g/km and below 75g/km)

Special Rate Pool – 8%

General Pool -18%

First Year Allowance for qualifying expenditure – 100%

Tax tables are overleaf

Documents

UNIVERSITY OF BOLTON WESTERN INTERNATIONAL COLLEGE FZE BA (HONS ...€¦ · BA (Hons) Accountancy Semester 1 Examination 2015/2016 Personal and Business Taxation Module No. ACC5003