1. Charlotte Madden is a baker. Charlottes business, Madden Bakeries Ltd, produces organic bread, cakes and pastries for restaurants in London, UK. During the tax year 2018/19, Madden Bakeries Ltds taxable turnover (excluding capital items) was 1,105,000. Madden Bakeries Ltds VAT administration and payments of VAT liabilities are up-to-date. Charlotte Madden has never been convicted of a VAT offence or assessed to a penalty for VAT evasion involving dishonest conduct. Which, if any, of the special schemes for VAT administration are available for Madden Bakeries Ltd in 2018/19?

A. Cash accounting scheme, annual accounting scheme and flat-rate scheme for small businesses

B. Cash accounting scheme and annual accounting scheme

C. Annual accounting scheme and flat-rate scheme for small businesses

D. None: Madden Bakeries Ltds taxable turnover exceeds the thresholds for participation in any of the special schemes for VAT administration.

2. Shilpa McVey is 68 years old and is employed as a corporate tax planning advisor by PMKG LLP. Shilpa is also a keen collector of paintings and sculptures. Shilpa intends to retire in the near future and plans to acquire a retirement home in Geneva, Switzerland. To finance this acquisition, Shilpa made a number of disposals (i.e. sales) during the tax year 2018/19. Which of the following disposals would be exempt from capital gains tax in 2018/19?

A. Sale of Shilpas principal private residence (i.e. her main residence), a house in Newcastle upon Tyne, UK. Shilpa acquired the house in 1983

B. Sale of a van for 18,000. Shilpa used the van for exclusively private purposes

C. Sale of shares in Gruden plc, a large manufacturing company that has its corporate headquarters in London, UK. Shilpa acquired the shares for 20,000 in 2003; disposal proceeds were 60,000

D. Sale of the ownership of a copyright of a film script that was written by Shilpa in 2010. Shilpa sold the copyright for 300,000

3. Katie Shanahan is employed as a specialist VAT advisor by PKC LLP, a large firm of accountants. Katies friend, Matthew Haslett, recently became a father and is planning to purchase a number of items for his baby. Matthew has approached Katie for advice on the VAT that might be chargeable on the following items: a new-born baby car seat, three new-born baby organic cotton bodysuits, a bedside crib (a childs bed) and a luxury activity gym (a childs toy that encourages movement and sensory development). Which of the items is subject to VAT at the standard rate?

A. None, because all of the items are either subject to VAT at the reduced rate, zero rated or exempt

B. The new-born baby car seat

C. The bedside crib and the luxury activity gym

D. The luxury activity gym