yes its based on uk tax system

Prestbury pic (Prestbury) prepares accounts to 30 September. During the year ended 30 September 2021 x made the following disposals In April 2021 Prestbury sold a building for 660,000, it had acquired the bulding in March 2014 for 200,000 and later converted the basement into an additional room at cost of 95.000 in May 2017 in May 2021 Prestbury sold 2.500 shares in Joan pla for 16.80 per share. The shares in Joan ple were acquired as follows: June 2000 - purchased 1,000 shares for $2.50 each. March 2001 - purchased 1,100 shares for 12 20 each January 2005 - Joan ple undertook a 1-for-30 bonus issue January 2015 - purchased 9,000 shares for 3 each. . September 2016 - Joan pic undertook a 1-for-10 rights issue at 22,80 per share and Prestbury bought all the shares to which it was entitled. In August 2021 Prestbury sold an antique painting located in the boardroom for 101.000. It was acquired for 20,000 in April 1981 and had a market value of 18,000 March 1982 Also in August 2021, Prestbury sold an antique vase for 22,000. It had acquired the vase for 18,000 in May 2018, Prestbury sold a car for 4,500 in September 2021. The car was acquired for 22,000 in June 2018. The costs of disposal were 525 Required: a) Calculate the chargeable gains (if any) arising in respect of onch of the disposals made by Prestbury during the year ended 30 September 2021, showing a worvings including the s104 holding pool for shares (21 maa b) in the context of corporate chargeable gains explain what is meant by the disposal of a substantial shareholding and explain the tax treatment of any gain or loss wing from such a disposal. (4 marks) (Total marks for question 225 marks) M B ic T 7 iii T: E I INCOME TAX (2021/22) * % 20 Basic rate Higher rate Additional higher rate 1 - 37,700 37,701 - 150,000 150,001 onwards 40 45 A starting rate of 10% applies to savings income where it falls within the first 5,000 of taxable income Personal allowances (2021/22) 12,570 Personal allowance Car fuel benefit (2021/22) The base figure for calculating the car fuel benefit is 24,600. Car fuel benefit (2021/22) The base figure for calculating the car fuel benefit is 24.600. Approved mileage rates (2021/22) Car and vans 0-10,000 miles 45p per mile 10,000+ miles 25p per mile 24p per mile 20p per mile Motorcycles Bicycles CAPITAL GAINS TAX (CGT) (2021/22) 10% 20% Standard rate of CGT Higher rate of CGT Business asset disposal relief rate Annual exemption 10% 12,300 "An 8% surcharge applies in respect of residential properties. NATIONAL INSURANCE (NI) (2021/22) NA CLASS 1 (primary) Earnings up to 184 a week Earnings between 184 and 1967 Earnings over 967 a week 1296 2% CLASS 1 (secondary) Earnings up to 170 a wook Earnings over 170 a week N 13.8% CLASS 2 Weekly Contribution-3.05 Small earnings exception - 6,515 CLASS 3 Weekly contnbution - 15.40 CLASS 4 Lower profits imit 9.568 s limit 50 270 More i hanno 1 of 2 CLASS 4 Lower profits limit 9,568 50 270 Upper profits limit Rate on profits between upper and lower limit-9% Rate on profits beyond upper limit.2% INHERITANCE TAX Inheritance tax threshold 2325,000 Inheritance tax rate 40% CORPORATION TAX Main rate 19% VALUE ADDED TAX Standard rate 20% Reduce rate 5% threshold 285.000 Mono anthrachid Cran VALUE ADDED TAX Standard rate 2094 Reduce rate 5% Registration threshold 85,000 Deregistration threshold 283,000 Capital gains tax (Corporations only) Retail prices index (January 1987-100.0) Feb M Apr May Jusua Sep Oct Noy Dec 1982 79.44 81.04 81 62 81.85 81 90 81.90 81 85 92.26 32.66 82 51 1983 82.61 82 97 83.12 84.28 84 64 84 84 3530 85 68 36.06 86.36 86 67 86.89 1984 85 84 87,20 87.48 88 64 38.97 8920 89.10 89.94 90.11 90.67 90 95 10.87 1985 91.20 91.94 9200 94 78 95 21 95.41 95 23 95.49 9544 9559 9592 95 05 1986 96 25 96.60 96.73 97.67 97 85 9779 9752 97.82 98.30 98.45 99.29 99.62 1987 1000 1004 1006 1018 1019 101.9 1018 102.1 1024 1029 103.4 1033 1988 1033 103.7 1041 105.8 1062 106.6 1067 1079 1084 1095 1100 1103 1989 1110 111.8 1123 1143 1150 1154 1155 1158 1166 1175 1185 1188 1990 119.5 120 2 1214 1251 1262 126.7 1268 128.1 1293 1303 1300 129.9 1991 130 2 1309 1314 133 1 133.5 134 1 1338 134.1 1346 1351 135.6 1357 1992 135 136 3 136.7 138 8 1393 139.3 138.8 138. 139.4 1399 139.7 1392 1993 1379 1388 139.3 1406 1411 1410 140 7 1413 1419 1418 1416 1419 1994 143 1421 1425 1442 1447 1447 1440 144.7 1450 1452 1453 1460 1995 1460 1469 1475 1490 1496 1498 149.1 1499 1506 1498 1498 1507 1996 150 2 150 91515 1526 1529 1530 1524 153.1 1538 1538 1539 1544 1997 1544 1550 155 4 156 3 156.9 1575 1575 1585 1593 1595 1596 1600 More 160 3 1608 1626 1635 163.4 1630 1637 1644 1845 1644 1644 1641 186) 1865 165 1651 1655 TA 1 17 17 1637 Next 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 1379 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 1442 144.7 144.7 144.0 144.7 145.0 1452 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 1526 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 1652 1655 165.6 165.1 165.5 1662 1665 166.7 167.3 2000 166.6 167.5 168.4 1701 1707 1711 170.5 170.5 171.7 1716 1721 1722 2001 171.1 1720 1722 173.1 1742 174.4 173.3 1740 1746 174.3 173.6 173.4 2002 173.3 173.8 174.5 175.7 1762 176.2 175.9 176.4 1776 177.9 1782 178.5 2003 178.4 1793 179.9 1812 181.5 181.3 181.3 181.6 182.5 1826 182.7 183.5 2004 1831 183.8 184.6 185.7 1865 1868 1868 187.4 188.1 188.6 189.0 189.9 2005 188.9 189.6 190.5 191.6 1920 1922 1922 1926 1931 193.3 193.6 194.1 2006 193.4 1942 195.0 196.5 197.7 198.5 198.5 1992 2001 200.4 201.1 202.7 2007 2016 2031 204.4 205.4 206.2 2073 206.1 2073 208.0 208.9 209.7 210.9 2008 209.8 211.4 212.1 214.0 215.1 216.8 216.5 2172 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 2228 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 2347 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 2570 257.6 257.7 257.1 257.5 2015 255,4 256.7 257.1 258.0 258.5 258.9 258.6 259.8 259.6 259.5 259.8 260.6 2016 258.8 260.0 261.1 261.4 262.1 2631 263.4 264.4 264.9 264.8 265.5 267.1 2017 265.5 268.4 269.3 270.6 271.1 272.3 272.9 274.7 275.1 275.3 275.8 278.1 Prestbury pic (Prestbury) prepares accounts to 30 September. During the year ended 30 September 2021 x made the following disposals In April 2021 Prestbury sold a building for 660,000, it had acquired the bulding in March 2014 for 200,000 and later converted the basement into an additional room at cost of 95.000 in May 2017 in May 2021 Prestbury sold 2.500 shares in Joan pla for 16.80 per share. The shares in Joan ple were acquired as follows: June 2000 - purchased 1,000 shares for $2.50 each. March 2001 - purchased 1,100 shares for 12 20 each January 2005 - Joan ple undertook a 1-for-30 bonus issue January 2015 - purchased 9,000 shares for 3 each. . September 2016 - Joan pic undertook a 1-for-10 rights issue at 22,80 per share and Prestbury bought all the shares to which it was entitled. In August 2021 Prestbury sold an antique painting located in the boardroom for 101.000. It was acquired for 20,000 in April 1981 and had a market value of 18,000 March 1982 Also in August 2021, Prestbury sold an antique vase for 22,000. It had acquired the vase for 18,000 in May 2018, Prestbury sold a car for 4,500 in September 2021. The car was acquired for 22,000 in June 2018. The costs of disposal were 525 Required: a) Calculate the chargeable gains (if any) arising in respect of onch of the disposals made by Prestbury during the year ended 30 September 2021, showing a worvings including the s104 holding pool for shares (21 maa b) in the context of corporate chargeable gains explain what is meant by the disposal of a substantial shareholding and explain the tax treatment of any gain or loss wing from such a disposal. (4 marks) (Total marks for question 225 marks) M B ic T 7 iii T: E I INCOME TAX (2021/22) * % 20 Basic rate Higher rate Additional higher rate 1 - 37,700 37,701 - 150,000 150,001 onwards 40 45 A starting rate of 10% applies to savings income where it falls within the first 5,000 of taxable income Personal allowances (2021/22) 12,570 Personal allowance Car fuel benefit (2021/22) The base figure for calculating the car fuel benefit is 24,600. Car fuel benefit (2021/22) The base figure for calculating the car fuel benefit is 24.600. Approved mileage rates (2021/22) Car and vans 0-10,000 miles 45p per mile 10,000+ miles 25p per mile 24p per mile 20p per mile Motorcycles Bicycles CAPITAL GAINS TAX (CGT) (2021/22) 10% 20% Standard rate of CGT Higher rate of CGT Business asset disposal relief rate Annual exemption 10% 12,300 "An 8% surcharge applies in respect of residential properties. NATIONAL INSURANCE (NI) (2021/22) NA CLASS 1 (primary) Earnings up to 184 a week Earnings between 184 and 1967 Earnings over 967 a week 1296 2% CLASS 1 (secondary) Earnings up to 170 a wook Earnings over 170 a week N 13.8% CLASS 2 Weekly Contribution-3.05 Small earnings exception - 6,515 CLASS 3 Weekly contnbution - 15.40 CLASS 4 Lower profits imit 9.568 s limit 50 270 More i hanno 1 of 2 CLASS 4 Lower profits limit 9,568 50 270 Upper profits limit Rate on profits between upper and lower limit-9% Rate on profits beyond upper limit.2% INHERITANCE TAX Inheritance tax threshold 2325,000 Inheritance tax rate 40% CORPORATION TAX Main rate 19% VALUE ADDED TAX Standard rate 20% Reduce rate 5% threshold 285.000 Mono anthrachid Cran VALUE ADDED TAX Standard rate 2094 Reduce rate 5% Registration threshold 85,000 Deregistration threshold 283,000 Capital gains tax (Corporations only) Retail prices index (January 1987-100.0) Feb M Apr May Jusua Sep Oct Noy Dec 1982 79.44 81.04 81 62 81.85 81 90 81.90 81 85 92.26 32.66 82 51 1983 82.61 82 97 83.12 84.28 84 64 84 84 3530 85 68 36.06 86.36 86 67 86.89 1984 85 84 87,20 87.48 88 64 38.97 8920 89.10 89.94 90.11 90.67 90 95 10.87 1985 91.20 91.94 9200 94 78 95 21 95.41 95 23 95.49 9544 9559 9592 95 05 1986 96 25 96.60 96.73 97.67 97 85 9779 9752 97.82 98.30 98.45 99.29 99.62 1987 1000 1004 1006 1018 1019 101.9 1018 102.1 1024 1029 103.4 1033 1988 1033 103.7 1041 105.8 1062 106.6 1067 1079 1084 1095 1100 1103 1989 1110 111.8 1123 1143 1150 1154 1155 1158 1166 1175 1185 1188 1990 119.5 120 2 1214 1251 1262 126.7 1268 128.1 1293 1303 1300 129.9 1991 130 2 1309 1314 133 1 133.5 134 1 1338 134.1 1346 1351 135.6 1357 1992 135 136 3 136.7 138 8 1393 139.3 138.8 138. 139.4 1399 139.7 1392 1993 1379 1388 139.3 1406 1411 1410 140 7 1413 1419 1418 1416 1419 1994 143 1421 1425 1442 1447 1447 1440 144.7 1450 1452 1453 1460 1995 1460 1469 1475 1490 1496 1498 149.1 1499 1506 1498 1498 1507 1996 150 2 150 91515 1526 1529 1530 1524 153.1 1538 1538 1539 1544 1997 1544 1550 155 4 156 3 156.9 1575 1575 1585 1593 1595 1596 1600 More 160 3 1608 1626 1635 163.4 1630 1637 1644 1845 1644 1644 1641 186) 1865 165 1651 1655 TA 1 17 17 1637 Next 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 1379 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 1442 144.7 144.7 144.0 144.7 145.0 1452 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 1526 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 1652 1655 165.6 165.1 165.5 1662 1665 166.7 167.3 2000 166.6 167.5 168.4 1701 1707 1711 170.5 170.5 171.7 1716 1721 1722 2001 171.1 1720 1722 173.1 1742 174.4 173.3 1740 1746 174.3 173.6 173.4 2002 173.3 173.8 174.5 175.7 1762 176.2 175.9 176.4 1776 177.9 1782 178.5 2003 178.4 1793 179.9 1812 181.5 181.3 181.3 181.6 182.5 1826 182.7 183.5 2004 1831 183.8 184.6 185.7 1865 1868 1868 187.4 188.1 188.6 189.0 189.9 2005 188.9 189.6 190.5 191.6 1920 1922 1922 1926 1931 193.3 193.6 194.1 2006 193.4 1942 195.0 196.5 197.7 198.5 198.5 1992 2001 200.4 201.1 202.7 2007 2016 2031 204.4 205.4 206.2 2073 206.1 2073 208.0 208.9 209.7 210.9 2008 209.8 211.4 212.1 214.0 215.1 216.8 216.5 2172 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 2228 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 2347 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 2570 257.6 257.7 257.1 257.5 2015 255,4 256.7 257.1 258.0 258.5 258.9 258.6 259.8 259.6 259.5 259.8 260.6 2016 258.8 260.0 261.1 261.4 262.1 2631 263.4 264.4 264.9 264.8 265.5 267.1 2017 265.5 268.4 269.3 270.6 271.1 272.3 272.9 274.7 275.1 275.3 275.8 278.1