*** ACCA Paper ATX March 2020 Exam was.. Instant Poll and comments ***

I thought it was really hard. Didn’t manage to complete the 10 mark pensions question at the end as I ran out of time.
Disappointed with the questions.
Feel I’ve learnt so much yet wasn’t examined .
I know I’ve made mistakes but I felt so under pressure with looking at the clock. Felt it was more written answers than calculations

I found it so time pressured.

The paper wasn’t too bad, least I understood the majority of questions compared to previous papers. Problem for me was time management as I missed a bit chunk out of at least 20%. I got stumped on calculations but should pick up a lot of marks for explanations. I think it will be close.

Question 2 was my strongest – it was R&D relief, tax treatment of intangible asset, TTP calc, relief of the loss and how much could be given to Porth, Overseas purchase of services and then election to exempt overseas profits and advantages and disadvantages.

Can anyone remember Q4, part a. I know it was FHL and pensions.

Ann Marie was there consortia in the loss relief as there wasn’t a loss group etc or was I a million miles away

People saying consortia in Q2 for Ryb Ltd. Wasn’t it CFC? Permanent Establishments and exemptions pointed towards that

Q1 Residency rules I didn’t study much otherwise that was an easy 9 mark question

Q3 and Q4 were reasonably easy. Especially Q4. IHT and PPC and adjustment of PA due to PPC. PPC was 85000 so I used this year’s Annual Allowance and last year’s of 40k so total 80k not 85k. Annual Allowance Charge for the balance of 5k

Too time pressured. Could not even finish off the Memorandum wasting an easy 1 mark

You’re probably right. I thought the company was a UK Res co with a foreign pe.

With the pension bit his company had put £8k per year , so wouldn’t that count towards the £40k, i.e 40-8 = 32 for each year.

85 – 32 – 32 =21k charge

I remember that being the case too. I’m sure the 3 companies it owned were all UK resident too.

Annmarie. I think you’re right. CFC charge would only occur on divs from the foreign co to the UK if the tax rate was sufficiently low etc and there being a UK non res entity involved. there was no 75% loss or gains groups so i’m sure it was getting at consortia.

But he received a payment in the prior year to his pension of £8k, the following year £8k. This has to reduce annual allowance.

He can contribute whatever he wants to the private pension but if he excess his allowance he’s liable to the charge on excess.

Can it be considered consortium? Since one of the member to consortium is individual, I read in one of the past year paper. They didn’t go for consortium as it is applicable only for companies

I can’t really remember to questions but based on the above;

Q1: residency? I stated each of the automatic requirements and concluded he has 3 ties to the UK. Gains arising overseas and in the UK: I spoke about temporary non-residency as it had been 5 years.

PE, I concluded that profits were taxable in the UK.

Death tax: I spoke about gifts with reservations, didn’t really know what to do with the 12 months however the cottage wasn’t let out until she died. I said that the amount of time she stayed in it was taxable?

I calculated the loss for consortium 60%.

I concluded that there was a 21,000 charge but I also adjusted the basic rate band as he was contributing to a personal pension plan. Didn’t have a clue what to write for the EIS but I tried to talk about it.

I calculated the research expenses 230% and spoke about the loss relief available if they didn’t claim the 14.5% rebate. Didn’t understand why they spoke about the contractor? It threw me off a bit.

*to that element (i.e the contractor)