[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-186696-en":3,"doc-seo-186696-105":30,"detail-sidebar-cat-0-en-105":83},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":27,"seo_description":14,"update_tm":28,"read_time":29},186696,2336464648322,"Aria","https://ap-avatar.wpscdn.com/avatar/2200025388227c56fec?_k=1778556882303663488",4,"Exam","Sitting In Centre On-Screen-CTA-exams-FA24_F_0","On-screen exam practice material focused on answering question verbs accurately across multiple legal and tax contexts. Content covers assessing whether an activity amounts to trading by applying the “badges of trade,” and evaluating the tax impact of trading versus disposing of investments. It also includes step-by-step calculation guidance for SDLT on VAT-inclusive property purchase prices, plus ethical principle identification related to confidentiality and professional competence.","| Calculate / Compute   | Work something out mathematically |\n| --- | --- |\n| Discuss   | Provide details about and evidence for or against two or more different views or ideas |\n| Explain   | Describe how something works in a way that makes it easy to understand |\n| Explain, with supporting calculations   | Describe how something works in a way that makes it easy to understand and illustrate the answer with calculations |\n| Identify/State/List   | State the answer in a few words without explanation or description |\n| Show   | Demonstrate or prove something |\n| Summarise   | State the most important parts of something using concise and precise wording |\n\n\n| Discuss whether Melvin is trading | The Courts have developed a number of tests to determine whether somebody is trading and these are known as the badges of trade. We need to take a detailed look at the badges of trade in order to determine whether the activities carried out by Melvin amount to a trade.\u003Cbr>First of all, we will need to identify whether there is a profit seeking motive. It is not the existence of a profit which is important, it is the motive to earn one. However, HMRC will only really be interested in this issue if a profit has actually been earned because then they have got something to tax.\u003Cbr>Here Melvin clearly entered into this venture to make a profit as it is stated that it provides him with his sole source of income and he viewed it as a profitable business.\u003Cbr>Another badge of trade is the frequency and number of similar transactions. If something is done once, never to be repeated again, it is less likely that it would be counted as trading. However, if it is done again and again, it is more likely that this is trading.\u003Cbr>At the moment only made three disposals have been made and it is arguable yet whether this amounts to a trade but certainly if this pattern were to continue it becomes more and more likely that this will be considered to be trading activity.\u003Cbr>etc |\n| --- | --- |\n| Summarise why it matters whether Melvin is trading or disposing of investments. | If Melvin is trading then he will be subject to income tax at up to 45% and national insurance contributions at 9%/2% on the profits of the business. Whereas if he is merely disposing of investments then the sale of antiques would be subject to capital gains tax at a maximum of 20% .\u003Cbr>As Melvin has other income which uses up his personal allowance and takes him up to his basic rate band, any trading income would be subject to income tax at 40% . If he was investing, then he would have the annual exempt amount available to him that would mean the first £12,300 of his gains would be tax free and the balance would be subject to CGT at 20% .\u003Cbr>Investing therefore is taxed at a much lower rate of tax than trading and Melvin may well prefer to be taxed as an investor. In addition, there are various reliefs available against capital gains tax…\u003Cbr>etc |\n| Calculate (or Compute) the SDLT due on the purchase of the property. | Price paid = £1m + VAT @ 20% = £1 .2m\u003Cbr>SDLT due:\u003Cbr>£150,000 x 0% = £0\u003Cbr>£250,000- £150,000 x 2% = £2,000\u003Cbr>£1 .2m- £250,000 x 5% = £47,500\u003Cbr>Total = £49,500 |\n\n\n| Explain, with supporting calculations, the SDLT due on the purchase of the property. | SDLT is due on the VAT inclusive price. As the building is a newly constructed (less than 3 years old) commercial building VAT is payable at the standard rate. The VAT inclusive price is therefore – £1m + VAT at 20% = £1 .2m.\u003Cbr>Although the VAT itself is a timing difference (assuming the building is used to make taxable supplies or if being rented an option to tax is exercised), the additional SDLT due on the VAT element is a permanent increase in price.\u003Cbr>As a commercial building SDLT is payable at the following rates:£150,000 x 0% = £0\u003Cbr>£250,000- £150,000 x 2% = £2,000 £1 .2m- £250,000 x 5% = £47,500 Total SDLT due = £49,500 |\n| --- | --- |\n| List (or State) the fundamental ethical principles at risk of being brea","cbCaihvq8GvK20HK","https://ap.wps.com/l/cbCaihvq8GvK20HK","pdf",143271,1,7,"English","en",105,"# Answering Question Commands\n## Discuss and Summarise\n## Calculate and Explain with Supporting Calculations\n## Identify and List Ethical Principles","[{\"question\":\"Which ethical principles are at risk when disclosing client information to a third party?\",\"answer\":\"Confidentiality and professional competence and due care are at risk, since client information should not be disclosed without proper authority or a legal/professional right or duty.\"}]","Sitting In Centre On-Screen-CTA-exams-FA24_F_0 | PDF",1788376105,18,{"code":4,"msg":31,"data":32},"ok",{"site_id":24,"language":23,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":78,"head_meta":80,"extra_data":82,"updated_unix":28},"sitting-in-centre-on-screen-cta-exams-fa24_f_0","",{"@graph":36,"@context":77},[37,53,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/exam/",3,{"item":52,"name":13,"@type":43,"position":11},"https://docshare.wps.com/document/sitting-in-centre-on-screen-cta-exams-fa24_f_0/186696/",{"url":52,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":41,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-09-06","2026-09-02",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71],{"name":72,"@type":73,"acceptedAnswer":74},"Which ethical principles are at risk when disclosing client information to a third party?","Question",{"text":75,"@type":76},"Confidentiality and professional competence and due care are at risk, since client information should not be disclosed without proper authority or a legal/professional right or duty.","Answer","https://schema.org",{"og:url":52,"og:type":79,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":81,"canonical":52},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":84},[85,89,93,96,101,106,110,115,120,123,127],{"id":20,"doc_module":4,"doc_module_name":46,"category_name":86,"show_sort_weight":87,"slug":88},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":90,"show_sort_weight":91,"slug":92},"Literature",80,"literature",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":94,"slug":95},70,"exam",{"id":97,"doc_module":4,"doc_module_name":46,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":102,"doc_module":4,"doc_module_name":46,"category_name":103,"show_sort_weight":104,"slug":105},6,"Technology",50,"technology",{"id":21,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},8,"Research & Report",30,"research-report",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},9,"Religion & Spirituality",20,"religion-spirituality",{"id":118,"doc_module":4,"doc_module_name":46,"category_name":121,"show_sort_weight":118,"slug":122},"World Cup","world-cup",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":124,"slug":126},10,"Lifestyle","lifestyle",{"id":128,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":97,"slug":130},19,"General","general"]