You shoukd assume that today's date is 1 Septernber 2022 Your firm has boen asked to provide advice to Aruba Ltd and one of its sharoholders, Frida. Frida warts advice on the twx. Frida: - Is resident and domiciled in the UK - Is a higher rate taxpayer and will remain so in the future - Will have dividend income of 3,000 in the tax year 2022/23 - Will realise chargeable gains of 12,300 in the tax year 2022/23, excluding any gains that may arise on the disposal of her Aruba Ltd shares Shares in Aruba Ltd: - Frida subscribed for 5001 ordinary shares in Aruba Ltd at par in September 2011. - Frida is one of four equal shareholders and directors of Aruba Ltd. - Frida intends to sell either 135 or 160 shares back to the company on 31 March 2023 at their current market value 15.00 per share. - All of the conditions for capital treatment are satisfied except for, potentially, the condition relating to the reductio level of shareholding. Arubar Lrot: - Is a UK rekidont trading company which marufactures chocotates - Prepares acoounts to 31 December each yoar - is rogisterod for VAT Holistic Partnership: - Had been trading as a partnership for many years as a manufacturer of scented candies within the UK - Holistic Partnership's main assets comprise a freehold commercial building and a patent for a process used in making the candles, which were valued on acquisition by Aruba Ltd at 210,000 and 880,000 respectively - Is registered for VAT - The transfer of its trade and assets to Aruba Ltd qualified as a transfer of a going concern (TOGC) for VAT purposes (HMRC) as small or negligible in the year ended 31 December 2022 - The business is forecast to make a trading loss of 150,000 in the year ended 31 December 2022 Aruba Ltd - results and proposed expansion: - The chocolates business is expected to continue making a taxable trading profit of around 100,000 each year. - Aruba Ltd has no non-trading income but realised a chargeable gain of 20,000 on 28 February 2022. - Aruba Ltd is considering expanding the scented candle trade acquired from Holistic Partnership into the export market from 1 January 2023. - Aruba Ltd anticipates that this expansion will result in the wholesale handbag trade returning a profit of 25,000 in the year ended 31 December 2023. Lid, but wiL, apply if, alternativoly, she sells back 100 shares (4 marks) ii) Calculate Frida's after-tax procoods per share if she sells: (1) 135 shares back to Aruba Ltd; and, alternatively (2) 160 shares back to Aruba Ltd. (4 marks) b) i) Describe the corporation tax treatment of the acquisition of the patent by Aruba Ltd if no charge for amortisation was required in its statement of profit or loss. ( 3 marks) ii) Discuss how Aruba Ltd could obtain relief for the trading loss expected to be incurred by the trade acquired from Holistic Partnership, if it does not wish to carry any of the loss back. (5 marks) c) Explain the VAT implications for Aruba Ltd in respect of the acquisition of the business of Holistic Partnership, and the additional information needed in relation to the building to fully clarify the VAT position. (4 marks) should assume that the tax rates and allowances of the tax year 2021/22 and financial year 2021 will continue to af eseeable future and that that today's date is 1 September 2022. 1=20 marks) You shoukd assume that today's date is 1 Septernber 2022 Your firm has boen asked to provide advice to Aruba Ltd and one of its sharoholders, Frida. Frida warts advice on the twx. Frida: - Is resident and domiciled in the UK - Is a higher rate taxpayer and will remain so in the future - Will have dividend income of 3,000 in the tax year 2022/23 - Will realise chargeable gains of 12,300 in the tax year 2022/23, excluding any gains that may arise on the disposal of her Aruba Ltd shares Shares in Aruba Ltd: - Frida subscribed for 5001 ordinary shares in Aruba Ltd at par in September 2011. - Frida is one of four equal shareholders and directors of Aruba Ltd. - Frida intends to sell either 135 or 160 shares back to the company on 31 March 2023 at their current market value 15.00 per share. - All of the conditions for capital treatment are satisfied except for, potentially, the condition relating to the reductio level of shareholding. Arubar Lrot: - Is a UK rekidont trading company which marufactures chocotates - Prepares acoounts to 31 December each yoar - is rogisterod for VAT Holistic Partnership: - Had been trading as a partnership for many years as a manufacturer of scented candies within the UK - Holistic Partnership's main assets comprise a freehold commercial building and a patent for a process used in making the candles, which were valued on acquisition by Aruba Ltd at 210,000 and 880,000 respectively - Is registered for VAT - The transfer of its trade and assets to Aruba Ltd qualified as a transfer of a going concern (TOGC) for VAT purposes (HMRC) as small or negligible in the year ended 31 December 2022 - The business is forecast to make a trading loss of 150,000 in the year ended 31 December 2022 Aruba Ltd - results and proposed expansion: - The chocolates business is expected to continue making a taxable trading profit of around 100,000 each year. - Aruba Ltd has no non-trading income but realised a chargeable gain of 20,000 on 28 February 2022. - Aruba Ltd is considering expanding the scented candle trade acquired from Holistic Partnership into the export market from 1 January 2023. - Aruba Ltd anticipates that this expansion will result in the wholesale handbag trade returning a profit of 25,000 in the year ended 31 December 2023. Lid, but wiL, apply if, alternativoly, she sells back 100 shares (4 marks) ii) Calculate Frida's after-tax procoods per share if she sells: (1) 135 shares back to Aruba Ltd; and, alternatively (2) 160 shares back to Aruba Ltd. (4 marks) b) i) Describe the corporation tax treatment of the acquisition of the patent by Aruba Ltd if no charge for amortisation was required in its statement of profit or loss. ( 3 marks) ii) Discuss how Aruba Ltd could obtain relief for the trading loss expected to be incurred by the trade acquired from Holistic Partnership, if it does not wish to carry any of the loss back. (5 marks) c) Explain the VAT implications for Aruba Ltd in respect of the acquisition of the business of Holistic Partnership, and the additional information needed in relation to the building to fully clarify the VAT position. (4 marks) should assume that the tax rates and allowances of the tax year 2021/22 and financial year 2021 will continue to af eseeable future and that that today's date is 1 September 2022. 1=20 marks)