Module Outcomes Assessed:
1. Assess the impact of taxation on land ownership and occupation;
2. Appraise the tax aspects of proposals for the management or development of land and estates;
3. Mitigate the impact of taxation on rural property ownership, occupation and management;
4. Plan for succession and inheritance on rural land holdings with full regard to clients’ wider objectives.
Task outline:
see separate case study relating to the Dawson Park Estate family and assets.
1. Assess what Susan Collins’ objectives may currently be for the estate, and how they will differ from her father’s objectives, set out when he last took advice in 2010.
2. Provide Inheritance Tax calculations for Susan Collins, Peter Dawson and Jill Dawson on the assumption that they die today (and that there is no spousal transfer/relief), and identifying what reliefs may be available (with explanatory notes).
3. Identify the key Inheritance Tax issues (if any) for Susan Collins, Peter Dawson and Jill Dawson and suggest:
(i) Actions that could be taken to mitigate the impact of Inheritance Tax on the estate
(ii) Any drawbacks to those actions (tax or otherwise)
4. Advise on, and explain, the Capital Gains Tax position (full calculations not required in submission) in the event that land at Vale Farm is sold for development, and suggest how any CGT liability can be minimised.
5. Identify and comment on other key (not Inheritance or Capital Gains Tax) issues (prioritising a maximum of four) you consider need to be addressed by Susan Collins.
6. Suggest what further information you require in order to further advise Susan Collins.
Presentation requirements:
Two documents should be uploaded:
Document 1 – A briefing note for the senior partner of your firm. This should comprise no more than four sides of A4, no less than 11-point font with margins no smaller than 2.5 cm, .pdf format.
The document should also include a reference list, which does not fall within the page limit.
Document 2 – Tax calculations carried out on a spreadsheet and copied into a Word document that you then save as a .pdf document to upload. Again, the font used to present these must be at least 11pt and the margins at least 2.5cm. Calculations should be presented in tables with annotation.
