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Chapter 13 describes how when any shares are sold they are matched with the shares purchased in order to compute the gain or loss arising on disposal.
Chapter 14 details the reliefs that are available to exempt gains, defer gains or reduce the tax rate applicable to gains. These reliefs are only available on qualifying assets and qualifying shares may qualify for business asset disposal relief, investors relief or gift holdover relief.The answer in the kit is correct – the 10,000 mile cut off that applies in computing the taxable benefit for employment income does not apply for NIC purposes.
The NRB is not being used twice – it is being used correctly in each of 2 SEPARATE computations.
Firstly in computing any IHT that arises on the lifetime transfers when they are made – only CLT’s.
Secondly in the computation to compute any IHT that arises on lifetime transfers made within the 7 years of death – this will account for any ADDITIONAL tax due on those CLT’s falling within this period and also taxing for the one and only time the PET’s that have been made during this 7 year period.I would recommend that you firstly refer to our main ACCA page and then access the “Plan your Exam journey” article and relate that to the exams you are still to sit at this level
Hi Ben – I don’t have the Kaplan kit but I can only think of 2 possibilities- either the question states that the equipment is 2nd hand or the answer has not been updated for the new AIA rules
Your syllabus is limited and does not include many rules that would be applicable in real life (some of which are included in the P6 Advanced Tax Paper). One such rule is Business Relief for IHT which may give up to100% relief from IHT for qualifying business assets – that would include shares in an unlisted trading company as in this example but this is outside your syllabus and should not be included in any question at this level.
It’s not about logic and what you think should be done – it is simply about following the prescribed rules as shown in the lectures and study notes.
Your question suggests that you have not watched the lectures?I do not have a copy of the 2019/20 BPP Kit and more importantly you should NOT be using it! You must use the current 2021/22 material only.
It doesn’t matter – in a Section C question the marker can see the calculations that you have done so that either answer would be marked correct and Section A questions would not be set where this would be an issue
Unfortunately you have not understood the basic group relationships – go back to the notes and lectures looking at how the 51% and 75% group relationships are determined.
You do not take 75% of 75% irrespective of whether the parent company is overseas or UK!The lectures accompany the OT study notes which chapters are clearly named allowing you to easily match with the Kaplan chapters if you choose to use that material as well our OT material.
I would advise using the method as shown in the lectures and notes for section C.
When answering Section A questions it’s all down to getting the right “letter” – so layout is irrelevant – but YOU must use a working that you understand and gives that correct answer!You do not have to “cram” any of it – as the note states:
“The following tax rates and allowances WILL be reproduced in the examination paper for Paper (TX-UK).”
All of that information is provided!Please also note when you ask a question not to label it simply as “Question” but give it a title so that other students can identify what the issue is and whether they wish to refer to it.
Once again you have not properly studied the notes – go back to the study notes – section 3.1(b)
Then you clearly need to study them again for as I have stated this issue is dealt with including examples in the notes and lectures and there is nothing more for me to add.
1) If more than one acquisition takes place in the following 30 days then a FIFO basis would apply in recognising which shares have been sold
2) A disposal will not take place immediately prior to a rights or bonus issue
The tax rates and allowances information provided by the examiner is clearly identified at the start of the Study Notes and also referred to within the individual chapters
I assume you mean in the answer to part (b) (ii).
Not sure how BPP have answered their other questions involving the preparation of the income tax computation but I would – as shown in the OT study notes and lectures – have firstly shown the division of the income into non savings and dividend income and for the calculation of the income tax liability firstly identify the revised extended basic rate and higher rate band limits and then proceeded to show how the non savings income and then dividend income is taxed – once again as shown in the study notes and lectures.
The study notes and lectures clearly identify and explain these terms with examples to illustrate
