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Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
What is the rate of Business Property Relief (BPR) available on the unquoted shares in 'Vintage Parts Ltd'?
ACCA · Question 30 · Value added tax (VAT)
Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
Prior to his death, Arthur submitted his VAT return for the quarter ended 31 August 2023 one month late, and paid the VAT due two months late. This was his first default.
Under the new VAT penalty regime (effective for periods starting on or after 1 Jan 2023), what is the late payment penalty for paying the VAT two months (approx 60 days) late?
Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
Prior to his death, Arthur submitted his VAT return for the quarter ended 31 August 2023 one month late, and paid the VAT due two months late. This was his first default.
Under the new VAT penalty regime (effective for periods starting on or after 1 Jan 2023), what is the late payment penalty for paying the VAT two months (approx 60 days) late?
Answer options:
A flat surcharge of 2% of the VAT due.
A 2% penalty on the VAT unpaid at day 15, plus a 2% penalty on the VAT unpaid at day 30, plus an annualized daily penalty of 4% from day 31.
A 5% penalty of the VAT due.
No penalty, as it is his first default.
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