This is an exercise that is made up of 4 photos in an orderly manner, with 2 questions a) and b) in the final photo. Thank you very much. 
12. Basil Hallward is employed as an investment analyst by Dorian plc. He has worked for Dorian plc since 2014. Basil was born in the United Kingdom (UK) and his permanent home (a house) is in London, UK. He was UK resident for income tax purposes throughout the tax year 2017/18. Basil is 27 years old and is married to Changying. Changying is 29 years old and had a taxable income of 120,055 in the tax year 2017/18. Changying was UK resident for income tax purposes throughout the tax year 2017/18. Dorian plc is a large multinational investment bank with its headquarters in London. The bank also has offices in Paris (France) and Dublin (Republic of Ireland). Basil's job required him to travel to Dorian plc's offices in Paris and Dublin, respectively, on several occasions during 2017/18. Following the 'Brexit' decision in the UK, Dorian plc plans to close its headquarters in London and to relocate this part of the bank to Dublin. The headquarters will be relocated in 2019. Basil has decided that he will move to live in Dublin. He plans to purchase a house in Dublin: this house will become his permanent home in 2019. Basil does not plan to sell his house in London. He has family and friends in London and plans to visit the UK regularly. He estimates that he will spend at least 100 days per year in the UK and will live in his property in London during these visits. CONTINUED The following information is relevant for the tax year 2017/18: (1) During the tax year 2017/18, Basil received a gross annual basic salary of 285,000. Income tax of 114,000 was deducted from Basil's gross salary under the Pay As You Earn (PAYE) system. (2) Basil made ten journeys to Paris and six journeys to Dublin during the tax year 2017/18. Basil was required to make these journeys as part of his duties as an investment analyst for Dorian plc. Each of these journeys required Basil to stay for one night before returning to London. Dorian plc paid Basil incidental overnight expense payments of 20 per night for each night spent in Paris. Dorian plc paid Basil 9 per night for each night spent in Dublin. (3) During the tax year to 2017/18, Basil received income in the form of interest on an Individual Savings Account (ISA) of 20,900. This amount was received on 1 January 2018. Basil also received income in the form of interest on a bank savings account of 19,300. This amount was received on 1 April 2018. (4) Basil made regular use of restaurant facilities provided by Dorian plc throughout 2017/18. The cost per person to Dorian plc of the provision of these facilities has been calculated to be 500. The restaurant facilities were available to all employees and were also available for use by the general public. (5) Basil's performance in his role as an investment analyst was assessed to be 'superb' by Dorian plc. Basil received a performance related bonus of 100,000 on 30 September 2017. Basil was awarded a further performance related bonus of 90,000, but he asked Dorian plc to delay payment of this bonus until 30 April 2018; Dorian plc agreed to Basil's request and paid this amount on 30 April 2018. Basil's contract of employment with Dorian plc states that he was contractually entitled to receive this bonus payment on 31 March 2018. ta (6) During the tax year 2017/18, Basil made charitable donations of 10,900 under the Gift Aid scheme. Throughout the tax year 2017/18, Basil was supplied with a diesel car by Dorian plc. Basil used the car for both work and private use. The car retailed at a list price when new of 85,000. Dorian plc paid 75,000 for the car, which has an official CO2 emission rate of 180 grams per kilometre. Basil made a capital contribution of 2,000 towards the cost of the car. All fuel is paid for by Dorian plc, including fuel used by Basil for private journeys. (8) During the tax year 2017/18, Basil received dividends of 30,000 from shares held in listed UK companies (9) Throughout the tax year 2017/18, Dorian plc provided Basil with a mobile telephone. The mobile telephone cost Dorian plc 625. Basil used the mobile telephone for both private and work purposes. CONTINUED CONTINUED 9 of 14 BUSS2151-WE01 Required: (a) Calculate the income tax payable by Basil Hallward for the tax year 2017/18. Items that are non-taxable/exempt from UK income tax should be clearly indicated by the use of zero or noted as 'exempt' where appropriate. (71 marks) (b) Critically discuss the UK income tax implications of Basil's plan to designate a house in Dublin as his permanent home but to live in his property in London for at least 100 days per year (assume that the current rules for residence and domicile will continue to apply). (29 marks) 12. Basil Hallward is employed as an investment analyst by Dorian plc. He has worked for Dorian plc since 2014. Basil was born in the United Kingdom (UK) and his permanent home (a house) is in London, UK. He was UK resident for income tax purposes throughout the tax year 2017/18. Basil is 27 years old and is married to Changying. Changying is 29 years old and had a taxable income of 120,055 in the tax year 2017/18. Changying was UK resident for income tax purposes throughout the tax year 2017/18. Dorian plc is a large multinational investment bank with its headquarters in London. The bank also has offices in Paris (France) and Dublin (Republic of Ireland). Basil's job required him to travel to Dorian plc's offices in Paris and Dublin, respectively, on several occasions during 2017/18. Following the 'Brexit' decision in the UK, Dorian plc plans to close its headquarters in London and to relocate this part of the bank to Dublin. The headquarters will be relocated in 2019. Basil has decided that he will move to live in Dublin. He plans to purchase a house in Dublin: this house will become his permanent home in 2019. Basil does not plan to sell his house in London. He has family and friends in London and plans to visit the UK regularly. He estimates that he will spend at least 100 days per year in the UK and will live in his property in London during these visits. CONTINUED The following information is relevant for the tax year 2017/18: (1) During the tax year 2017/18, Basil received a gross annual basic salary of 285,000. Income tax of 114,000 was deducted from Basil's gross salary under the Pay As You Earn (PAYE) system. (2) Basil made ten journeys to Paris and six journeys to Dublin during the tax year 2017/18. Basil was required to make these journeys as part of his duties as an investment analyst for Dorian plc. Each of these journeys required Basil to stay for one night before returning to London. Dorian plc paid Basil incidental overnight expense payments of 20 per night for each night spent in Paris. Dorian plc paid Basil 9 per night for each night spent in Dublin. (3) During the tax year to 2017/18, Basil received income in the form of interest on an Individual Savings Account (ISA) of 20,900. This amount was received on 1 January 2018. Basil also received income in the form of interest on a bank savings account of 19,300. This amount was received on 1 April 2018. (4) Basil made regular use of restaurant facilities provided by Dorian plc throughout 2017/18. The cost per person to Dorian plc of the provision of these facilities has been calculated to be 500. The restaurant facilities were available to all employees and were also available for use by the general public. (5) Basil's performance in his role as an investment analyst was assessed to be 'superb' by Dorian plc. Basil received a performance related bonus of 100,000 on 30 September 2017. Basil was awarded a further performance related bonus of 90,000, but he asked Dorian plc to delay payment of this bonus until 30 April 2018; Dorian plc agreed to Basil's request and paid this amount on 30 April 2018. Basil's contract of employment with Dorian plc states that he was contractually entitled to receive this bonus payment on 31 March 2018. ta (6) During the tax year 2017/18, Basil made charitable donations of 10,900 under the Gift Aid scheme. Throughout the tax year 2017/18, Basil was supplied with a diesel car by Dorian plc. Basil used the car for both work and private use. The car retailed at a list price when new of 85,000. Dorian plc paid 75,000 for the car, which has an official CO2 emission rate of 180 grams per kilometre. Basil made a capital contribution of 2,000 towards the cost of the car. All fuel is paid for by Dorian plc, including fuel used by Basil for private journeys. (8) During the tax year 2017/18, Basil received dividends of 30,000 from shares held in listed UK companies (9) Throughout the tax year 2017/18, Dorian plc provided Basil with a mobile telephone. The mobile telephone cost Dorian plc 625. Basil used the mobile telephone for both private and work purposes. CONTINUED CONTINUED 9 of 14 BUSS2151-WE01 Required: (a) Calculate the income tax payable by Basil Hallward for the tax year 2017/18. Items that are non-taxable/exempt from UK income tax should be clearly indicated by the use of zero or noted as 'exempt' where appropriate. (71 marks) (b) Critically discuss the UK income tax implications of Basil's plan to designate a house in Dublin as his permanent home but to live in his property in London for at least 100 days per year (assume that the current rules for residence and domicile will continue to apply). (29 marks)
