*** June 2022 ACCA ATX exam – Instant Poll and comments ***

any one please tell which topic tested in ATX paper

I agree that the exam was fair.

I did feel though that not a lot of the syllabus was covered and I barely did any calculations?

The EIS relief was one part that I hadn’t really revised, I think I said that because the shares hadn’t been held for 5 years, the relief would be added back to income tax but I have no idea if that is right or not.

The other question that threw me was the split year basis!

umar wrote:any one please tell which topic tested in ATX paper

IHT on a death estate, opening years trade losses relief, buying shares from a shareholder by the company -CGT conditions, SIP shares and income tax.

I thought exam went well

Trading loss adjusted i did from start date to 5 April so adjusted for the months

The shares bit for capital treatment i said for it to be capital treatment holding must be reduced by 75% otherwise would of been treated as dividends

The IHT one where it says calc IHT on worst situation (something like that) I assumed on death with no taper relief

Can’t remember too much else to be honest but also found i didn’t do much calculations mostly writing

Only question I didn’t know was the little 3 marker on the SIP shares but made something up for the sake of it

Hello guys the questions which i got in my Atx morning shift are listed below. Overall paper was Ok. I completed my whole paper in allocated time. Guys what you got in your paper. Hopefully i will pass this time inshallah.
Question 1
Prepare Memorandum for following requirement
Req:(A) Knowledge Obtain for advising the client
what is meant by Professional behavior.
(Mark’s : 5)
Req:(B) Conditions for Re-Purchase of shares by company ( Mark’s : 6)
Req:(C) Potential Advantages and Disadvantages for Olma in voluntary registration of VAT (Mark’s :9)
Req:(D) First year losses adjustments for Olma and Basis Period. (Mark’s: 9 marks)

Question 2
Req:(A) Calculation of Income tax liability of Huggon. (Mark’s :9)
Req:(B) State the Conditions of share Incentive plan (Mark’s :3)
Req:(C) Calculation of Chargeable gains and after tax proceed if the shares are disposed before the uk residents and after the Uk resident. (Mark’s :9)
Req:(D) Gift to discretionary trust why this is subject to Uk and Calculations of IHT tax liability (Mark’s :5)

Question:3 (Fox ltd)
Req:(A) Chargeable Gain on disposal of leased free hold building and explanation for Deffered tax treatment (Mark’s: 5).
Req:(B) Explanation of Rollover relief in respect with changeable Gains Group. (Mark’s :6)
Req:(C) Loss Adjustment for the Group perspective (Mark’s:9)

Question:4
Req:(A) Maximum IHT tax liability for gift (Mark’s :5)
Req:(B) Explanation on treatment of EIS shares after the disposal of EIS shares.
(ii) Capital loss relief after disposal of EIS Shares.
Req:(C) explanation on cash deposit in bank and Interest payable on the residential property.
(ii) After Tax saving if all deposited cash in bank withdraw and set off the mortgages.

I also had that paper. I’d be interested to know how you answered some of the questions

My review of the ATX ( UK ) Exam June – 2022 :

The following were the most disastrous questions :
1. 9 damn mks for a ROR question with hardly 3 figures. No sub-question.
2. 9-odd damn mks for group relief question again hardly having 2 figures. No sub-question.
3. 6 mks for mortgage + interest implications.

Hardly any popular topics appeared. No BPR, No GR, No BADR, No R&D, No SSE, No DGC, No Capital Gains Relief, No RBC, No VAT CGS, No VAT L&B.

Other topics having a reasonable chance of appearing like CFC, PE, Temporary Absence – CGT, Pensions, Charity exemption, Change of A/c date, and EMI, didn’t feature too! Around half of these were present in the S/D 2021 paper.

Amongst the popular ones, opening years LR appeared ( and obviously TR didn’t appear then ), and so did IHT UK R vs NR, ROR, BADR ( although in very limited detail ), Gift to Trust, GRG, VAT Registration, Calculation of ITL, DTR.

Compared with S/D 2021 paper, this paper expected far too much with fewer details at the disposal, and quite some topics that have less usually featured popped up. Sub-questions were very limited, difficultly level was higher than in the previous paper.

Loss on disposal of EIS shares probably appeared for the first time. CG getting crystalized in 10 yrs for depreciating assets for ROR purposes also probably made its debut. Given that PSC is examined limitedly as expressly given in the examiner reports, it wasn’t a surprise to not see it. However, a few liquidation criteria applicable to quality for capital receipts did come- two of which they had already mentioned in the question, and the four remaining had to be listed out.

The first question was good, it gave a fair indication that difficult ones are to follow and it happened! The second was average, and the third and short were nothing short of disaster majoritarian. The exam was time pressured indeed although as compared to past papers & mocks, better time management was possible.

This is how o answered the question. The gain on the sale of the lease was calculated using the percentages given in the question, this is because it was the sale of a wasting asset.
The deferred tax treatment from the sale in 2007 was rolled over to an asset with less than 60 years so was not deferred but was frozen and crystallised after 10 years.

Has anyone appeared for the ATX exam today?