[Abbi]

Can anyone remember q3 questions? I’m having a panic about not passing. It’s my final exam and really don’t want to have to go back!

[Abbi]

@minicooper said:
For that pension question, did no one else think that the maximum she could contribute to the scheme was £80k as this was the only earnings that were relevant for tax purposes? The unfurnished property income would not qualify. I only realised at the end so didn’t get to adjust the basic rate limits to £80k instead of £90k. 🙁

Pretty sure I’ve failed this paper…again! Such bad time management in combination with poor technical knowledge on some bits of the syllabus. 🙁

I must admit I did think this but I had not done a practice on this so I just went with the 90k but I think you are correct!

[Abbi]

@haadia said:
I did it but dont remember the answer. What was the rollover relief for the intangible asset ?

I did not have a clue, I just worked it out as a normal roll over relief in hope I might get easy marks for indexation allowance etc!!

What did you say about overseas? That it was classed as a branch and not a sub, therefore not affecting bands as not an associate. Corporation tax payable in uk but would get DTR on uk amount as overseas was 23%? And not to elect??

[Abbi]

Anyone that did Q3 remember tax and NIC liability with and without disincorporation?

[Abbi]

@haadia said:
yes charged at 40%

Thanks, yes 40%.

[Abbi]

@haadia said:
in 2014/15 it was £40 AA hence no unused from previous year. Only 2 years unused £10 k each hence 30k additional charge

So you put 30k as the AA charge in income tax and extended bands by 90k? I did this.

[Abbi]

@puritee said:
No Abbi..I got AA of 20k taxed at 45% to get charge. (50k-40k) x 3 = 30k + 40k = 70k available. Excess = 90k – 70k = 20k

I am probably wrong but I thought one year he’d used all his allowance. Can’t remember the exact question now. What did you put for part C? IHT 2 ways to not pay it?

[Abbi]

@puritee said:
Did anyone else think the last part on EIS/SEIS on inheritance tax was asking for discussion of BPR? These shares qualify for BPR?

Yes, I put as long as they were held for 2 years they would get BPR relief as they are unquoted shares.

[Abbi]

Of course!!! This got me puzzled but I did not work it out. Did you get an AA to be included in the income tax of 30k?

[Abbi]

Did any one think q1 company car was a close company and therefore treated as a dividend. Grossed up, put in her income tax comp and then given a 10% tax credit. No class 1a NIC?

[Abbi]

Can anyone remember how many marks were available for the systematic & unsystematic risk question with regards to portfolio theory and CAPM?

[Abbi]

@neelythere…. I got the same TERP as you so I hope it’s correct 🙂

[Abbi]

<cite> @geteveryone said:</cite>
Yeah, I also got 6625 shares.

2650 is just 10,600/4, so it doesn’t take into account the actual gain.

ie. Proceeds
(Cost)
_____
Gain
(AE)
_____
Chargeable.

I don’t know if 6625 is right, but I used algebra to calculate the answer.

4X – 2.4X – 10600 = 0

So far, I know I mucked up the Pension Scheme portion of question 1 and I also didn’t realise Rhonda’s BSI was gross, so I wouldn’t be surprised if this was wrong – pays to read the question attentively.

<cite> @charlotteo said:</cite>
I would say yes, deduct the occupational pension contribution from his salary in the employment income working (only his contribution, not his employer’s) as this is a tax free benefit.

And because his personal pension contribution was £40k, yes, you’d add a grossed up amount of £50k when extending the tax bands.

But I thought if the market value was higher than the sale we took the market value & not the actual sales proceeds?

The market value was £6.40
She sold to daughter 4.00 -irrelevant
Cost 2.4
Actual gain £4
Annual exemption £10600/ £4 gain = 2650

[Abbi]

<cite> @ifeoluwakiitan said:</cite>
same here! i just need 50 marks and i will be fine……lol

I am hoping you are right as mine was very similar!!

Q5. Did you give the son PRR relief at Gain x 36 months exempt/ 67 months I think – off the top of my head!? I did so I hope that’s right! What did people have the gross PET charge at??

Also Q3. I did different. Market value of shares £6.40 less cost £2.40 = £4 £10600 annual exemp/£4 gain per share = 2560 shares… But I know a lot of people are disagreeing with this!

VAT output on fuel Scale I did the amount given divided by 120 x 20. Can’t remember the amount given?!

I put the debt was not allowable for recovery until the next VAT return.

If the VAT return was late I said the default surcharge would begin its 12months again & as this was the 2nd default within the last return being late there would be a charge of 2% charge on the tax payable (as long as it was over £400- which it was!)

[Abbi]

<cite> @charlotteo said:</cite>
I think: when you calculate a gain involving subject matter that was sold at a below market value – as was the case here – you take market value as the deemed proceeds. So for 1 share:

Deemed proceeds £4
Cost <u>(£2.40)</u>
<b>Gain to tax now £1.60</B>

£10,600 / £1.60 = 6625 shares

I agree with your workings but wasn’t the market value £6.40 the cost £2.40 (she sold to her daughter for £4 which is irrelevant. ) Leaving a gain of £4 per share. 10600/4 = 2560??

[Abbi]

<cite> @waleedansari said:</cite>
I got 6625 shares

How did you get to this? I’m probably wrong. I took the deemed proceeds I.e the market value, instead of the price she sold to her daughter. Worked out the gain per share to be £4 on this basis & then did the annual allowance of £10600/4

[Abbi]

For the share question did any one get 2650 shares ??

[Abbi]

Can any one let me know what the roll over relief questions answer was…. Question 3 part B I think?! Was kicking myself when that came up!!!

[Author]

Posts