(iii) State the value added tax (VAT) and stamp duty (SD) issues arising as a result of inserting Bold plc as

a holding company and identify any planning actions that can be taken to defer or minimise these tax

costs. (4 marks)

You should assume that the corporation tax rates for the financial year 2005 and the income tax rates

and allowances for the tax year 2005/06 apply throughout this question.

(iii) Bold plc will be making a taxable supply of services, likely to exceed the VAT threshold. It should therefore considerregistering for VAT – either immediately on a voluntary basis, or when its cumulative taxable supplies in the previoustwelve months