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I believe it was 10% annually for remaining four years so you had to use Purchase Power Parity for each year. I can’t 100% recall but I believe Euro was base currency so it was;
S1 = S0 x ((1+10%)/(1+4%)
S2 = S1 x ((1+10%)/(1+4%)
S3 = S2 x ((1+10%)/(1+2%)
S4 = S3 x ((1+10%)/(1+2%)I thought the exam was OK but there was so much to do that I voted for Hard. I don’t like the software either!
I didn’t even know there was a difference between Currency Swaps and FOREX Swaps!
I think it’ll be close but definitely think I can do better in December if needed.
Good luck all 🙂
You didn’t need to tax the gain as it said tax-exempt 🙂
I had no idea what the NPV was either 🙁
@arandomwelshguy said:
The question with the non-domiciled husband was quite easy I thought. I even had time to check that the answer that our Tax manager in the question was right (it was…)Just calculated it again, it the tax manager said £3,342 if the full amount was invested by the spouse as there was no SNRB available as she was an additional rate payer but DNRB is always available so Additional rate tax on interest was £675 and on dividend £2667. If split £150,000 to husband and £300,000 to wife, the husband pays no tax as SNRB and DNRB will cover both investments as he was basic rate payer. Total tax paid by wife was £1,593 so tax saved by splitting was £1,749.
I thought it was easier than June’s exam but maybe that’s because I wrote all the wrong things!
I mentioned SSE in regards to the loss which is a good thing!
Anyone know if the paper will be up on ACCA website soon? I can’t really remember the questions but want to do them myself with text book in hand.
The question with the non-domiciled husband was quite easy I thought. I even had time to check that the answer that our Tax manager in the question was right (it was…)
@dskinner83 said:
I believe it is three years, but that meant it was available on the first possible date of disposal but not the second as the three year time frame passed in the middle of them.I think in this exam the timings of the two options are often a clue as to terms of the relief, as the availability of the relief will often change in the middle of the two options.
Yeah, good spot, that often seems to be the case from past paper questions too. Pity that I wasn’t able to think properly after accepting failure after about 15 minutes in.
When do you guys (I mean those that think they’ve failed) start revising? I’m going to re-sit in September but that’d only give me 1.5 months if I started after results. I think I’ll take the weekend off and start again on Monday evening but feel the need to start right now even though I’ve been awake since 4am (couldn’t sleep)
Did I delete my previous comment? Oh well…
In regards to Entrepreneurs relief, I believe it was available as “Where the disposal is an asset of the individual’s or partnership’s trading business that has now ceased the disposal must also take place within three years of the cessation of trade”
Also, for BPR, I wasn’t sure as I knew there was 2 out of 5 year rule but I wasn’t sure if cessation had any effect on that rule.
@ddmoo said:
Just read the textbook, PETs do not affect the NRB until they become chargeable. In the question it would have become chargeable on death.Ziti (Q20 in Kaplan) is a good example of what I think should have been done for the question in the exam. It shows the Inheritance tax payable on a PET at death. Before NRB available, it says “Gifts in 7 years before the gift (1.7.2007 – 1.7.2014). We were given the gross chargeable transfer amount in the exam so there’s no need to deduct the annual exemptions to show NRB available.
Good to know I’ve got 1 mark in the bag 🙂
@ddmoo said:
I believe (still not looked this up) the asset needs to be disposed of within 2 years of the cessation of business to qualify for ER so I said it would not be available. I didn’t write anything about BPR as I believe the question said it did not qualify for it.Think it’s 3 years but I’ll check for us now
Ah, think I may be mixing up some of the questions. I started with Question 3 and I think there was a gift in maybe 2014. The more I think about this exam, the more confused I get! Sorry for any incorrect information.
@ddmoo said:
UK Verison.Q1 went really badly for me. I spotted a few things wrong with the IHT computation (Taper relief should be done on IHT amount and not PET value and they forgot to include AEA) but had no idea what to do with the value of the PET. I think it should have been the difference between the MV and the price paid but concluded no matter what it was it would be covered by the NRB anyway. The expansion part went badly. Got the easy marks from the NIC charges and said they could recover the input tax on the overheads and sub contractor costs. Wrote a whole page on De Minimis only to then scrap the idea. Would be happy with 15 marks on Q1 (ethics and professional marks should be me over half of that).
Q2, 3 and 4 I felt went really well for me, a lot of stuff I knew very well. I remember skimming through at the start of the exam and seeing a question on CFC and thinking well that’s lost marks there already, turned out to be the easiest marks of the exam.
Expecting anywhere between 40 and 60 marks.
RE: Q1, I think it said that there was a GCT which used most of the NRB as it was made within the 7 years before the gift.
Nice to hear you did well on the other questions, good luck!
Also, take what I say with a pinch of salt, my head was gone after about 15 minutes into the exam!
Another disaster here! My first ACCA exam and I think I’ll be lucky to get 30 marks 🙁
I completed an ACCA accredited degree last year so still have a decent knowledge of the UK tax system and gave myself a good refresh over the last few months but my mind goes blank when reading exam questions!
@dskinner83 said:
I did the UK version, and it was hard but I would say on the fair side of hard.
Question one would have thrown me had I not done s couple of questions in practice this week that were fairly similar in method, although I’m still not sure I got it right.The VAT threw me a bit, I felt like I had to do something with regard to partial exemption but it didn’t feel like there was enough information to do it properly. In the end, I looked at what the overall VAT recovery would be, and the non-recoverable bit and concluded that Strategy A would be De Minimis but Strategy B would not so there would an extra cost in the input VAT that wasn’t recoverable.
Got a couple of bits wrong re: the statutory redundancy pay and recoverability of gift relief, so now crossing my fingers that I didn’t make any other glaring errors that will have lost lots of marks!
Had about ten minutes left at the end and ended up rewriting my last but to question 1 because I’d made such a mess of it. Not sure I’m going to get many professional marks for presentation!!
Not sure what other people thought, but I quite liked the fact there was no question choice, it meant there was no time wasted deciding which questions to do and no regrets afterwards thinking I’d picked the wrong one.
I had no idea what to do with the partial exemption bit. They gave us the % so I knew it was involved but I had no seen a question like before so had to guess. I think that’s my problem with ACCA exam questions compared to university exam questions, no two are alike…
Also, mentioned the statutory redundancy was exempt but reduced the £30,000 limit but said that ex gratia and laptop were fully chargeable. No idea on gift relief either as I hadn’t seen cessation mentioned in any past questions although I knew it was only available on qualifying business assets but remembered that there was a 3 year since cessation rule for something.
I’d love to have the choice. I’m great with IHT and VAT but hate CGT and CT so hopefully having a choice would allow me to focus on one of the taxes that I like.
