Daniel works for Osley Ltd, a VAT registered trading company making a mixture of taxable and exempt supplies.

Osley Ltd voluntarily registered for VAT from 1 June 2019. Daniel is just about to prepare the first VAT return for the quarter ended 31 August 2019 using the information set out below:

Supplies:
Taxable supplies (VAT exclusive)	52,000
Exempt supplies	48,000
Total supplies	100,000
Input tax:
Attributable to taxable supplies	1,100
Attributable to exempt supplies	1,200
Non-attributable	80
	2,380

Daniel will initially use the simplified partial exemption tests to determine whether the company will be able to recover all input tax for the quarter ended 31 August 2019.

Requirements

2.1 Determine whether Osley Ltd is able to recover all input tax for the quarter ended 31 August 2019 using the simplified partial exemption Test one; and/or the simplified partial exemption Test two. (7 marks)

2.2 Catex Ltd is expanding its activities and have recently secured a bank loan of 366,000 and applied the funds as follows:

(1) 201,000 to fund the purchase of a new factory on 1 December 2020 for use in its trade

(2) 55,000 to fund the purchase of shares in Cake Ltd on 1 December 2020

(3) 110,000 which was used to purchase a 99 year lease over a new property, Lido Place, on 1 December 2020

Requirement

Calculate the stamp duty and/or stamp duty land tax payable on the above transactions. State the payment dates and who is responsible for paying any tax due. (6 marks)