[aaman]

@pakc1981 said:
No Amman . There were three ties.
1. Wife and daughter
2. Was in the UK more than 90 days in EITHER of the previous 2 tax years.
3. Stays in available home at least one night in tax year.

Was previously resident so based on the days spent he spent during tax years he needs 2 ties.

Well it was mentioned in the question paper itself that he was not a resident prior to the year.
Plus the conditions for ties are
1) any family is resident
2) live in UK for substantial work for atleast 40 days
3) stays in UK home for continuous 90 days
4) lives in UK for more than any other country

He didn’t satisfy any of the ties except 1st, and you need to satisfy 3 ties, this is what the Kaplan textbook says.

[aaman]

Also, in first question, he only had one tie that his family was resident in current year, all other ties were not satisfied, neither work nor house
Therefore considered non resident

[aaman]

Allocated rent is not an eligible R&D exp
Therefore should not be consider

[aaman]

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

[aaman]

Full 80k cannot be considered, as employer too contributed 8k every year. Therefore effective limit would be 32k PY+ 32k CY = 64k
Excess 85k -64k= 21k should be taxable

[aaman]

@gjohnstone00 said:
Can anyone explain how the disposal of associate was accounted for? It went from a 40% holding, so significant control to 10% so should be accounted for under IFRS 9. Is the template correct to use

Disposal proceeds. X
Fair value of retained interest X
—–
X
Less

Net assets of sub at disposal date. X
Goodwill at disposal date. X
Carrying amount of NCI. (X)

Profit / loss. —–
X
——

Thanks

Its wrong template, this is used whenever the subsidiary get converted to associate on disposal of shares.

[aaman]

You haven’t discounted the consideration since it will be paid after one year from the date of acquisition. I have assumed the discount rate of bond i.e. 5%

[Author]

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