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Passed, 67%. That completes my first time passes across all papers. Average mark 72%; highest 89%.
My personal approach to exams:
1. Make mind maps of difficult topics, your brain doesn’t think in lists.
2. Practice past paper questions, and ruthlessly analyse your answers.
3. Make sure your hand is in shape (used to writing continuously for 3 hours).
4. Review the examiner’s comments from previous exams to see what he/she raises.
4. Finish studying by 7pm the night before an exam. Go for a walk, relax and get to bed.
5. Be brutal with your time management in the exam.
6. Plan answers.The last three points are so important.
If you have studied hard, then you will know what you need to know. You’re not going to learn anymore by staying up late the night before an exam. Give your brain a rest, and the next morning in the exam you will be able to recall what you know much more easily. Also you have more chance of reading the question properly (did you notice I listed ‘4’ twice above?).
For time management, there is a good technical article on the ACCA’s website that covers why this is good. But in summary, if you don’t answer all questions you make it very hard for yourself to pass. It seems counterintuitive to leave a question part way through if you’re out of allocated time for it, but trust me: MOVE ON. You can go back to it later if you have time.
Finally, planning answers. The four professional marks on these papers are an absolute gift. Make sure you get them. Lay it out in the right format and make a quick note on the exam paper (not the answer book) what your report will say and how. Failing to plan is planning to fail. Without one you’ll be off making rambling points that may even end up contradicting each other. Be brave enough to spend a few minutes planning, and remember:
a) Identify point/issue from the scenario.
b) Explain why it is a point/issue.
c) Make recommendation.
d) Repeat (until you run out of points or marks).One other thing on reports. If you have to write a report and there is data given in the question, on the first page of your answer write ‘Appendix’, underline it, then do all the calculations you need to do. Add a note for the examiner saying: ‘For exam purposes, I have placed the appendix at the beginning of the report, rather than the end.’ The point of this is to get you the information from the data (the trends) to help you write the body of your report, and it is neatly out of the way of the main body of your text. By placing it at the start you don’t have to worry that it will be messy or that you’ll run out of room, and the note to the examiner is saying that you are well aware it should be at the end but in an exam it is not practical.
It’s always worked for me. Good luck, see you on the other side.
I thought this exam was very difficult.
With the question (4, I think) about the rent a room relief etc, for the IHT part, I put that as there was a specific gift of property to the daughter, this gift had to be grossed up as the residue of the estate passed to his spouse (and was therefore exempt from IHT).
Thus, the tax due on the gift of land reduced the amount available for his spouse.
Does that sound right?
Q1 – Not great.
Q2 – Unmitigated disaster.
Q3 – Not great
Q4 – OKBefore I sat this I had two exams left. I think I’ll still have two left in December.
Thanks kop17. It’s a tricky tax – I think this may panic a few people so close to the exam, but forewarned is forearmed.
When referring to a CLT, I mean a transfer into a trust which will have incurred lifetime tax. All transfers not into trust are either exempt (to a spouse, for example) or potentially exempt, depending on how long the donor lives.
The thrust of what I’m saying is that on death, in addition to the death estate, all PETs and CLTs (i.e. into trusts) made in the 7 years prior to death are now chargeable to IHT. The nil rate band applicable is that in effect in the year of death (i.e. £325,000 in 2013/14).
Then, and this is the crucial bit which seems to be causing the most disagreement:
Any CLTs (again, I mean into a trust) made within the 7 years prior to the earliest PET/CLT made in the 7 years before death, reduces the nil rate band available. This is not the case with any PETs made in that same 7 years prior.
Example A:
Individual dies 6th June 2014. Only ever made a PET in 2005 and another PET in 2010.
The PET in 2005 is now fully exempt as the donor lived in excess of 7 years. The PET in 2010 is now chargeable to death tax along with the death estate as it was within 7 years. Full NRB available (£325,000) and used against PET in 2010 first before death estate, excess at 40% less taper relief.Example B:
Individual dies 6th June 2014. Made a CLT (into a trust) in 2005 and a PET in 2010.
The CLT in 2005 is now fully exempt as the donor lived in excess of 7 years. The PET is now chargeable to death tax along with the death estate as it was within 7 years. The full NRB is not available. Looking back 7 years, not from the death, but from the PET in 2010, there was the CLT in 2005. This CLT reduces the NRB available for the PET in 2010. Again, excess at 40% less taper relief.So what I’m saying is that any transfers prior to the 7 years before death are fully exempt from an IHT charge, but any NRB will be reduced by any CLTs made in the 7 years prior to the earliest transfer that is now chargeable. This is my understanding from BPP. If you check the OT notes for F6 (I so wish they did P6….) on page 151, I believe it is in agreement.
Some of you may appreciate the significance of the date of death in my two examples 🙂
I’m sceptical. These are articles for CPD units for members, rather than discussion articles regarding topics that are applicable to P2.
And if there is a cash flow, he’ll say indirect method.
In the SOFP there will be no NCI, and the retained earnings figure will only have the gain in the parent added from [W3A].
Is it the case that you only need to calculate the gain or loss in the group, [W3B], if you are required to produce the SOCI (as you would still consolidate the results for the year up to the point of disposal)?
Hi kisekdance,
But I thought that was only true of the P&L, as it covers a period, rather than the SOFP, which is a snapshot at the year end. There is no NCI. I’m trying to remember an example question: when the retained earnings were calculated it took the year end and added the profit calculated for the parent’s statement only. I didn’t see anywhere where the group gain was considered?