[bilalkhalifa]

I had YBC too but slightly different questions to yours.

Yes it was a strange paper.

Last question was on internal control benefits for stakeholders.

No idea if I passed but I am praying I have so I am done with acca exams

[bilalkhalifa]

Boladadak1 wrote:Wow. Congratulations. Who was your tutor or self study?

I studied with with Kaplan revision and tuition. I did Tx at university back in 2008 so got exemption. Having such a large gap of 13 years I did know anything in Tax.

Worked very hard over the past 3 months to learn Tx and Atx. Did alot exam questions practice from exam kit. Found the content massive.

Guys anyone not successful not give up and keep trying.

[bilalkhalifa]

Passed 92% first attempt. So relieved. Now only SBL to complete. Got my results via email rather than SMS this time.

[bilalkhalifa]

Hello avbosib,
Yes I was on kaplan live online. Hope we done enough to pass ?. Don’t want to waste time resitting. If I pass moving onto my last paper SBL next.

All the best with your results..we can have a six weeks break.

[bilalkhalifa]

How i answered…no idea if right or wrong

Q1 part a was about selling assets to a business of a unincorporated trader. I worked out gain on GW and Building would transferred and chargeable gain which will qualify for BADR. Equipment would be entitled for capital allowances so would have a balancing charge on the trading profits. I mentioned GW will attract BADR because the transfer to MO Ltd is not a close company.

CGT would be at 10% but only for element up to £1m lifetime max for BADR rest at 20%

Part B

I think it provided profits on cessation but when I ran the numbers it used up the BRB so CGT at 20%. The sale was to a Plc company where incorporation relief would apply 100%, so although Nico was employee of the company, held the assets/shares for more than 2 years (combined period of sole trader and plc acquistion) it would not qualify for BADR on the eventual sale of shares (partly) because he does not own 10% or more.

There was mention about VAT on the assets…I simply said TOGC would mean no VAT…building was over 3 years so exempt unless option to tax is chosen (which is not the case)

VAT other matters – mind went blank here

It also asked any matters around the building transfer….I thought hmm must be talking about SBA when I mentioned about.

There was mention about non tax advantaged shares…I simply said no tax on grant date but income tax on exercise date…(there was little numbers so made up my own) I did say class 1 NIC would apply because because shares are in plc which are readily convertible to cash.

I forgot to mention about CGT on eventual sale of shares but then again maybe question said talk about income tax …so might not be relevant.

In all this rush to answer the question I forgot to present this in report format …prob lost a few marks here.

Q2 mentioned Investor relief applies because it was newly subscribed shares after Mar 2016.

There was a mention of sale of subsidiary where SSE would apply but had intangible asset transfered at tax nuetral basis where degrouping charge applies as under 6 years….I could not remember exact rules in the exam so guess add to proceeds of shares (which is wrong ..should be included on the company leaving group)

Q3 was about residency ties test. My conclusion she is UK resident in 2022/23

Calc Income tax on arising basis for UK tax …had to include UK salary and DTR would apply (when I ran numbers the OS tax was lower of two)

Everlyn changed her domicile by choice but dies in 2 years. I said as per IHT rules domicile of choice won’t apply until after 3 years lapse and thus will be subject to UK IHT.

I worked this out assuming Residence nill rate band applied as decendant (son) got main residence house. Though I noted it was over £2m (apparently the RNB is meant to be restricted if over £2m but unsure examinable for ACCA)

There was question about transfer into Trust which is CLT …so I worked it out at 25% but now reading other answer I think I forgot to use the NRB so maybe it was not chargeable.

CGT I said if charged to IHT the will qualify for gift relief so no charge…but reading answer it was cash so no CGT on cash …so probably thay was the correct answer.

There was a question of gift shares cheaply to sister …I worked it out as gift relief (balance) applicable but chargeable gain on profit element (I.e cheap shares sold for less cost)

CGT @20% because I think she was additional rate payer.

Another question on investment property income.
The loan acquisition cost I said allowable expense to property income (guess)
The fridge replacement cost allowable at New cost less price received on selling old fridge.
Both these item would get 45% tax relief as she was additional rate tax payer

But the capital loan repayment not allowable any circumstances….
The interest element was deducted not from property income but income tax reducer at max 20% tax relief.

Q4 there was loss relief and capital loss…the capital was not pre acquisition so i just assumed company would need to net off against gains first so new parent cannot have this loss
…the trading loss was before acquisition but question clearly said no change in trade or conduct…so I guess cannot use loss for 5 years by group but can carry forward loss in meantime.

Last past was odd and seemed abit too easy I think for ATX….must more to this

It has 16 month period (remember it’s a ltd company and not sole trader so cannot reduce the profits assessment with overlap profits – which there was none)

I simply split over 2 accounting periods of 12 month and 4 months …..pro-rata profits….trading loss bf above netted off trading profits and net gains overall (capital loss against capital gain) all taken to first 12 months

The TTP for both period I applied CT @ 19%
Then worked out payment dates 9 months and 1 day after each Accounting period.

Like I said abit too easy for the marks so must be more to the story.

[bilalkhalifa]

Passed with 70% second attempt (48% on first attempt). Don’t give up guys and keep trying.

I am not auditor nor do I have any auditing experience so did struggle to grasp this topic area

[bilalkhalifa]

Failed 48% first attempt. Attempted remotely from home but technical issue such as not been able use my calculator during exam through me off just before the exam and affected my performance. Didn’t answer much on question 2 so expected to receive 25% but was pleasantly surprised to get 48%.

Ah well….Will resit in June.

Well done to those who passed. Those who didn’t we can do it. Let’s not give up.

[bilalkhalifa]

Passed with 66% first attempt. Studied with Kaplan but Opentuition was a great help to understand certain topics. Thanks Chris.

1 exam completed 3 more to go.

[bilalkhalifa]

When answering Q2 ethics. Part b) ship depreciaton did we have address ethics part within part a)?

Q4 – did we have to calculate treatment under BOTH a) asset acquisition and b) business acquistion? Or simply state which one is relevant den apply this to calculate EPS. I got negative earnings under business combination so couldnt work out EPS?

Q4 was the revenue as an agent or principle ..although i discussed couldnt decide so went with my gut as principle

Q3 UK version there was discuss of correct to consolidate…what did others decide..i said yes….

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