Income Tax Liabilities

Section A: Objective Test Elena owns a cottage in Cornwall which she lets out as a Furnished Holiday Let (FHL). During the tax year 2023/24, the property was available for commercial letting to the public for 220 days. It was actually let to the public for 115 days. The longest single period of occupation by one tenant was 45 days. Does the property qualify as an FHL for 2023/24, and what is the primary tax advantage regarding capital allowances?

Section A: Objective Test On 6 April 2023, Zenith Ltd provided its marketing director, Tariq, with a new fully electric company car (0g/km CO2 emissions). The car has a list price of £45,000. Zenith Ltd also paid £800 to install a charging point at Tariq's home and provided £400 of electricity to charge the car. What is Tariq's total taxable benefit in kind for the car and related expenses for the 2023/24 tax year?

Section A: Objective Test For the tax year 2023/24, Chloe has a threshold income of £210,000 and an adjusted income of £280,000. What is Chloe's available pension annual allowance for 2023/24, assuming she has no unused allowances brought forward?

Section B: Case 1 - Vanguard Robotics Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares. Question: What is the basis period for Liam's final tax year of trading (2023/24) as a sole trader?

Section B: Case 1 - Vanguard Robotics Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares. Question: Prior to incorporation, Liam purchased £1.5 million of new robotic testing equipment in May 2023. What is the maximum Annual Investment Allowance (AIA) Liam can claim on this expenditure for his final 9-month period of account?

Section C: Constructed Response Dr. Aris Thorne is a medical professional with multiple sources of income. For the tax year 2023/24, his financial details are as follows: 1. Employment Income: Aris is employed as a consultant at a local NHS hospital. His gross salary for 2023/24 was £95,000. During the year, the hospital provided him with living accommodation on the hospital grounds. The property cost the hospital £180,000 in 2010 and had an annual value of £4,500. The hospital also paid £1,200 for the property's heating and lighting. Aris's employment contract requires him to live on-site to be available for emergency on-call duties. 2. Self-Employment Income: Aris runs a private medical clinic as a sole trader. His tax-adjusted trading profit for the year ended 5 April 2024 was £42,000. This figure is before deducting capital allowances. The tax written down value of the main pool at 6 April 2023 was £12,000. During the year, he purchased new medical laser equipment for £25,000 (qualifying for AIA) and sold an old examination table for £1,500 (original cost £3,000). 3. Property Income: Aris owns a residential property in the UK which he lets out unfurnished. - Rent received: £18,000 - Mortgage interest paid: £4,000 - Insurance: £500 - Repairs to a leaking roof: £1,500 4. Other Information: Aris made a net contribution of £8,000 to his personal pension scheme during the year. He also received £2,500 in UK dividend income. Required: Calculate Dr. Aris Thorne's Income Tax liability for the tax year 2023/24. Show all workings clearly, including the calculation of capital allowances, property income, and the adjustment to his basic rate band.

Section A Marcus owns a coastal cottage that qualifies as a Furnished Holiday Letting (FHL). During the current tax year, the property was available for letting for 250 days and actually let to the public for 90 days. Due to unforeseen travel restrictions, he could not meet the actual letting condition. He has another FHL property that was let for 150 days. Which of the following elections can Marcus make to preserve the FHL status of the coastal cottage?