ACCA TX ^UK Syllabus B. Income Tax And Nic Liabilities - Partnerships and limited liability partnerships - Past Papers ^{8 / 8}

Required:
Calculate Daniel’s trading income assessment for the tax year 2014–15. (3 marks)

Samson and Delilah are a married couple. Samson was born on 24 June 1964 and Delilah was born on 6 May 1962.

They are both employed by Rope plc, and Delilah is also a partner in a partnership. The following information is vailable in respect of the tax year 2014–15:

Delilah
(5) Delilah has been in partnership with Esther and Felix for a number of years. The partnership’s tax adjusted trading profit for the year ended 31 December 2014 was £93,600. Esther is paid an annual salary of £8,000, with the balance of profits being shared 40% to Delilah, 30% to Esther and 30% to Felix.

(6) During the tax year 2014–15, Delilah paid interest of £6,200 (gross) on a personal loan taken out to purchase her share in the partnership.

Required:
What is Delilah's share of taxable profit from the partnership?

Alfred and Edward King are brothers. They are trying to calculate their balancing payments for the tax year 2013–14, and the following information is available:

Alfred King
(2) He has been in partnership with Anne Royal and Mary Regal running a retail shop since 6 April 2004, but Mary resigned as a partner on 1 January 2014.

(3) The partnership’s tax adjusted trading profit for the year ended 5 April 2014 is £228,000. This figure is before taking account of capital allowances.

(5) The partners have always shared profits equally, and continued to do so after Mary resigned.

Required:
What will Alfred's share of tax adjusted trading profit be for the year ending 05/04 2014?
Capital allowances for the period are 34,000

Kang, Ling and Ming have been in partnership since 2003, preparing accounts to 30 June. Ming left the partnership on 31 October 2011. Profits have always been shared equally.

The partnership had a trading profit of £148,800 for the year ended 30 June 2011, and a profit of £136,800 for the year ended 30 June 2012. Each partner has unused overlap profits brought forward of £29,400.

Required:
Calculate the trading income assessments of Kang, Ling and Ming for each of the tax years 2011–12 and 2012–13. (5 marks)