PART D

2a) Write a letter back to Dumas & Co raising the requisitions on title you have identified 2b) Mr Greene would like to complete at 12pm instead of 2pm to allow him sufficient time to move. Please suggest and draft an appropriate amendment to the contract. This is to be included in your letter.

In a different transaction, you are acting for the seller of a freehold property with unregistered title. You are preparing for deduction of title to the property to the solicitor acting for the buyer. You receive the following the deeds and documents relating to the property. Which of the following is the best candidate for a good root of title when deducing title to the property and why? In your answer, please explain the purpose of each document and, if you have discarded it as being the good root of title, explain the reason why. A conveyance of the property dated 10 March 1955. A conveyance of the property dated 15th September 1979. An epitome of title dated 12th August 1979. A memorandum of sale dated 4th August 2021 A land charges search certificate, dated 8 March 1984.

Francis Chan runs a manufacturing business producing women’s fashion. She is a sole trader. On the basis of the trial balance set out below and the year-end adjustments which you need to take account of listed in paragraphs (a) – (e) below please prepare both a Profit and Loss account and a Balance sheet for Francis Chan for the year ending 30 June 2021.                Trial Balance for Francis Chan, manufacturer of fashion gear, as at 30 June 2021:                                                                                £                                                      £   Sales                                                                                                               1,125,000 Purchase of fabrics                                   675,000 Creditors                                                                                                           18,000 Opening stock                                              27,000 General expenses                                        33,000 Rent paid in advance                                   10,500 Salaries and benefits paid                        240,000 Debtors                                                         67,500 Company cars (purchased July 2020)    103,500 Computers                                                   120,000 Office Fittings and furniture                     127,500 Bad debts                                                       4,500 Drawings                                                       45,000 Cash balance at 30th June 2021                   4,500 Capital                                                                                                              315,000                                                                   1,458,000                                         1,458,000   The business is to depreciate the new cars at the rate of 10% per annum; £5,250 of the rent paid in advance relates to the next financial year; Closing stock at the year-end amounts to £31,500; The business is to make a provision for doubtful debts of £4,000; There are unpaid office expenses of £9,000.

Please explain in the form of a written answer how the following will be dealt with in the final accounts for ‘Robson, Nixon and Armstrong’, solicitors, for the financial year ending 31 December 2020:-   a) Rent paid on 22 December 2020 for the business premises used by the firm for the period 1 January 2021 until 31 March 2021; b) A bill paid on 15 December 2020 for stationery delivered on 1 November 2020. As at 31 December 2020, 1/4 of this stationery remained unused; c) A gas bill relating to the business premises paid on 15 January 2020 for the period 1 October 2019 until 31 December 2019; and d) Work in progress as at 31 December 2020 which has been recorded but not yet billed by the firm. It is not expected that any of this time will need to be ‘written off’.

Contracts have now been exchanged and Mark has called you to say that his girlfriend would like to set up a small stall selling hamburgers at the edge of the property. No structural alterations would be Advise Mark of any potential obstacles to this, as well as identifying any permissions and consents that will be required before he can proceed with the proposal. Where you refer to a potential obstacle, please identify what steps you will take and, if applicable, what document you need to obtain and use to allow you to confirm the position to Mark.

List and explain which pre-contract searches you will take in relation to 17 County Way, Sunderland. In your answer, you must also state the reason for choosing each of the searches you Please note that there is no requirement to provide information regarding the fees payable for each search.

As a solicitor at Holland & Co you have been instructed by John Udale, to act on the sale of Udale (Holdings) Limited. John Udale is the Managing Director and principal shareholder of the company. Holland & Co are used to acting on company sales and have a designated team of specialist corporate lawyers. Before you commence any work it becomes apparent that specialist tax advice is going to be required on the sale. When this has been pointed out to John Udale he said ‘’Hopefully you can deal with that somehow. Perhaps you can research the law? I do not want to have to go to an expensive national firm to do the job for me’’. Sadly no one at Holland & Co has anything other than a very basic knowledge of tax and certainly not the degree of knowledge that appears to be required on the sale.   What is your professional responsibility in this situation? Please consider whether John has any other preferable or more practical options for him and potentially for Holland & Co?

The accountants for Jones Brothers Limited (‘the company’) have produced the following figures relevant for calculating the company’s corporation tax for its accounting period ending 31 March 2021.   a) The company has received rental income from a tenant of £18,500. b) The company has income receipts from its business sales of £728,000; c) There are deductible capital allowances for the year of £19,750 d) The company has paid remuneration to its directors of £194,000; and e) The company has paid salaries of employees and pension payments for employees to an approved scheme totalling £155,000.   In addition to the above figures, the company has sold some surplus land and has made a chargeable gain of £133,000. It has no plans to buy any replacement business assets.            The company has paid dividends to shareholders of £75,000.            The company has made a charitable donation to its chosen charity of £5,750.            Please calculate the company’s liability for corporation tax.

9.2.2 Predict TWO possible negative effects that the Olympic Games could have on the host country and environment. (4)