November 21, 2012 at 7:37 am
Income Tax Computations & NIC’s
Computations for husband and wife, including
Employment Income with benefits
Trading Profit – possible cessation with adjustment of profits and Capital Allowances
Joint Investment Income
Corporation Tax & VAT
- Adjustment of profits
- Capital Allowances
- Accounting Period straddling 2 Financial Years and/or possibly a short period
- Use of losses including group relief of losses
- Output tax and Input tax for VAT return
- Group VAT registration
- VAT on Exports & Imports and trading within EU
(VAT issues could be in Q.4 or Q.5)
- Transfers of assets between spouses
- Gift of shares and availability of gift relief and entrepreneurs relief
- PPR relief, Incorporation relief
Q’s 4 & 5
New rules on pension contributions as per examiner’s FA 2011 update article
IHT as part of question
Corporation Tax losses if not in Q.2
– joint investment income
– adjustment of profits
– national insurance
– chargeable gains to calculate, with rollover relief
– group loss relief – with some tax planning
– interest on late payment of corporation tax
– VAT registration – futures test
– cash accounting scheme
– default surcharges
Capital gains tax
– Transfer between spouses
– Incorporation relief
– PPR, gift and entrepreneurs’ relief
The exam will comprise five compulsory questions. Question 1 will focus on income tax with Question 2 focusing on corporation tax. These two questions will make up 55% of the marks.
Question 3 to 5 will total 15 marks each. Question 3 will examine capital gains tax with the other two questions covering other areas of the syllabus.
VAT will be examined for at least 5 marks in either Question 1 or 2 but could form a separate question. Inheritance tax will also always be examined for at least 5 marks within Question 3 or 4 or 5.
Opening years and change of year-end for sole traders.
Corporation tax losses.
VAT default surcharge and VAT invoice content and annual accounting.
CGT: Principal Private residence and entrepreneur’s relief, chattels.
IHT lifetime and death transfers.
Corporation tax: Basic computation with capital allowances and profit adjustments; due dates for submission of tax returns and penalties for late submission. Possible group relief/transfer of group gains or losses.
Calculating the VAT due for a quarter, default surcharges for overdue returns.
Individual tax: Employee benefits and pension contributions. Calculation of an income tax liability.
Capital gains tax: A mixed bag of topics; shares, gift relief, transfers between husband and wife, compensation receipts with some gains qualifying for entrepreneur relief.
A mixed question involving the trader; short computations on assessments, partnerships and change of accounting date.
Overseas aspects of a company; double tax relief, branches and subsidiaries, transfer pricing and VAT on imports and exports.
A general inheritance tax question.
Badges of trade problem question with a calculation of the results either as a trading or capital gain.
Q1: Income tax computations for husband and wife.
- For a self employed person maybe involving adjustment of a profit.
- Employment income including the evaluation of benefits.
Q2: (a) Corporation tax computation – ddjustment of a trading loss and relief for the trading loss in the current chargeable accounting period and carry back for 12 months including capital allowances for plant and machinery.
(b)VAT – surcharges for paying the VAT late/group registration for VAT.
Q3: Capital gains tax for individual with shares including rights and bonus issues and incorporation relief.
Q4: Pensions and the new rules.
Q5: Implications of a person being UK domiciled for the purposes of IHT, or property business income for individuals.
Source : PQ Magazine
best of luck with exam!
ansiNovember 21, 2012 at 9:28 am
can u please let me know the exams tips of LSBF if possible….November 21, 2012 at 11:44 am
well i haven’t seen them available anywere for now.
But as soon as somebody will be so kind to share those, they’ll be publishedNovember 21, 2012 at 10:22 pm
Thanks Ansi!!!!!! Great post!November 29, 2012 at 7:29 am
hey do these tips really count ??? to what extent we must rely on them???December 2, 2012 at 6:32 pm
Don’t they have never been right in any exam I have done
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