Answer 4

This is legal firm that will be created by the stakeholders, individuals, and shareholders for
generating the profit from the business. This legal entity will allow to enter the contact and
agreement be sued and sue for managing the physical assets, remit, transfer and take loan
from the banks and financial institutions. This legal entity will be formed by the authorized
person to the corporation authority of UK that is based on specified features and documents. It
decided the information of business conducted, total share issues, share value and other
business details. It is also base on different features and specifications that protect the owner
and related person of corporation. This will be created the multiple person and single person for
conducting the business for the specified objectives and goals of the company. It will be formed
on the basis of non-profit and profit of the business that will be earned by the corporation.
Mostly Profit Corporation has been formed by the people for conducting the business with
specified goals and objectives of the organization. This corporation will generate the profit and
distributes to the stakeholders of the company. Profit will be distributed on percentage basis that
will be managed by the shareholders in the corporation. In other hand, non-profit corporation will
be formed as charitable purpose which is based on social activities and cause. It includes the
religious, charitable, educational, scientific, and research and development purpose. These
corporations will use the entire profit and revenue for its objective which has been mentioned in
the registered documents of corporation. Mainly three types of corporation are formed as per
nature, size, and tax purpose which as discussed below

C Corporation: this is most important legal entity that manages the attribute of corporation. This
is single and individual entity corporation that receives the profit and taxed at individual level
instead of business level. This is same as single entity level that is taxed at single entity. This
corporation will be taxed secretly form the individual owner of business. This is mostly usable
concept in which they take the sign of C Corporation for income tax federal purpose. C
Corporation will join the unlimited number of stakeholders based on domestic and international
shareholder from any country. In this concept United Kingdome government check the profit and
earning that distributed to the shareholder which will be taxed as per government rules. It also
taxed paid in corporate tax return and single return as individual base.

S corporation: this is also same as C Corporation but it has some other disadvantages and
limitation on tax and regulatory rules purpose. This legal entity will be formed less than 100
shareholders that will not be taxed as a single taxpayer. This corporation will be taxed on
income as a business that will also prepare the income and financial position statement as per
normal business. This corporation will transfer the profit and share transfer to the shareholders
which will include in the personal return of the shareholders. This corporation has power to
transfer the losses, deductions, and credits to the shareholders of company in their tax return for
benefit purpose in personal income tax return. It will avoid the double taxation system that
provides the benefit of single tax on single income in the United Kingdome. This corporation
also follows the rules and laws of the state where registered office is situated.

B Corporation: this is Private Corporation that provides the public benefit to the shareholders of
the company. This will fulfill the ethical norms, social norms and environmental performance for
developing the standard of business. This concept doesn’t provide the any tax benefits to the
shareholder and company as per United Kingdome laws and rules. This company will build the
relationship with customer that will fulfill the object of organization in the environmental sector,
social sector, and other sector for generating the highest profit in the business

Non-profit corporation: this is charitable organization which has not motive to generate the profit
in the business. They will earn the revenue and use to such fund in the charitable activities and
causes for the public. This corporation is non-taxable entirety which pays zero tax to the
government. They also receive the donation, contribution, and revenue that will be used for the
religious purpose, educational purpose, and charitable purpose. In this concept board appoints
the single person who will take all the decision of the organization in the favor of objects and
organization. This corporation will depend upon grants, donations, and charities from the public,
government and corporate sector that will be used for public welfare and health in the society.
They also collect the private as well as government donations that will be proper record and
documents by the organization. These donation also exempt from taxed because it will be used
for the public welfare and benefits.

Limited liability Corporation: this corporation is based on corporate structure and partnership
structure. This legal entity is based on limited liabilities of members that will protect to the
members for financial damages, losses, and causes of company. this is partnership structure
that is also separate legal entity where partners are the shareholders that manages the capital
in the corporation. This capital creates the limited liability to the shareholders for company
damages, causes and losses which is also responsibility of the shareholders in a normal
corporation. LLC will not be taxed because all the profits and losses will be distributed to the
partners of the Corporation that will be taxed in the individual tax return of the shareholder and
pay tax accordingly by considering the business income as a pergola income.

Charter Corporation: this corporation will be formed under special act and regulations of Charter
to the queen and king of country. They have conducted the business as per rules and
regulations of charter in the country. It includes the bank of England, British Broadcasting, East
India in the UK that manages the business of the specified goods and services in the United
Kingdome as per rules and regulations of the charter.

Sole Corporation: in this corporation series of individuals will hold the office and title of
government in the United Kingdome. This individual person manages the functions, duties,
responsibilities, hold, grant, take loans, and proper transfer of the government and state office. It
includes the Ministry of public health, agriculture, Bishops and post master that conducted the
public services on the behalf of government and state legislations. In this concept all the
capacities of the local offices will be managed by the single person that will called successor.

Corporation aggregate: this corporation will be formed by the group of people for conducting the
business in the United Kingdome. This is spate legal entity that will manage the business and
decision independently from its member and members of group. These corporations will
continue be involved in the business after the death of its member for new joining of new
member in the corporate aggregate. It will also be formed in artificial form that will act as legal
terms and take necessary decision for the health business of corporation.
Answer 5

If any person disposes, transfers gift and exchange the capital assets which will be taxable as
per capital gain of United Kingdome. This tax is based on resident of UK that will transfer the
assets to the other person on a consideration basis. This tax also is calculated if you will sell the
UK based assets to the other person. As per capital gain tax, Non-resident person is also liable
to pay tax on transfer of assets to the other person if the lives in the UK. This contention is also
describes in the Land and transfer act of United Kingdome. Capital gain tax also provide the
specific rules and regulation if he temporary lives in the UK and temporary lived in outside UK
more than five year in the any countries of the world. If any person provides the gift and transfer
assets at free of cost than this act will also be apply to the individual person. UK government
implements the special provisions and rules for gift and disposal the assets at free of cost. This
act will also be apply when divorce, dissolution and separation of partnership is conducted in the
United Kingdome. Personal possession and personal disposal is also taxed by the capital gain
act for a consideration basis. This tax also exempt many assets that will not be taxed by the
government because it will outside the preview of capital gain tax. It includes the exempted
assets which are private motor, private bikes, private vehicles, gift for charity purpose,
government securities, betting winnings, prizes cash, ISA,s assets held and foreign currency for
personal purpose. If the person will sell the personal home in which he lives then it will also be
exempt by the capital gain tax. This exemption will not apply on second home person because it
means that this home is used for investment purpose and rented purpose by the person. If any
person sells the share in open market to the third party on consideration basis than it also be
taxed by the capital gain tax.