[York Huang]

Hi ~ Tutor Smith
Thanks for the help
I spend a few hours thinking the logic in your answer/narratives
Then it finally persuaded me to accept the the official answers provided by ACCA

Thanks you ~

[York Huang]

Hi ~ Tutor

Might I further ask Question19 for F6 Sept 2016 Specimen Exam – Section B

What is the amount of CGT which could have been saved if Marlon had transferred 50% ownership of the house to Alvita prior to its disposal?

The answer proceed as follow :
(11,100 at 28%) + (31,785 at 10% (28% – 18%)) = £6,286
Please explain the numbers of 11,100 and 31,785, how to make it out ??
Where does it come from ? thanksful

[York Huang]

I’ve seen little OT lectures, but still not for lesson of pension contributions
I also go through the BPP material, but read too fast to pay attention to tax treatment of occupational contribution

Thanks you, teacher ~

[York Huang]

Alrighty ~ I’ve figure out myself

Any pension contributions made by employer ( mostly are occupation pension scheme)
are exempt from income tax, it has been notified in BPP lecture book

[York Huang]

Hi ~ Tutor
There are something confused me
please see the 2 case of UK TX past paper

Petula (Mar/Jun 2017)
Each tax year since 6 April 2009 (including the tax year 2016–17), Downtown plc has contributed £30,000 into the company’s HM Revenue and Customs’ registered money purchase occupational pension scheme on
Petula’s behalf. Petula has never personally made any pension contributions. Petula adjusted income for 2013/14, 2014/15 and 2015/16 was below 150,000

? In Petula case, it deduct nothing (zero) for the computation of taxable income

Dill ( Sep/ Dec 2017)
During the year 2018/19 Dill contributed the maximum possible tax relievable amount into H Plcs HMRC registered money purchase occupational pension scheme. Dill was not previously a member of pension scheme. Company made no contributions on her behalf.

– Dill’s gross salary £270,000
therefore Adjusted income > 210,000 so Annual allowance reduced to £10,000

? In Dill case, it deduct 10,000 of pension contributions for taxable income computation

My question is that Dill does subtract pension contributions in tax computation, BUT Why for Petula, it subtract nothing !!! why

Thanks a lot ~

[York Huang]

Thanks you sir ~ your Journal post is helpful for me to understand rather than ACCA’ answer

CR Deferred tax provision 760 (which you’ve calculated)
DR Deferred tax OCI 1,560 (which you’ve not taken through OCI)
CR Tax expense SPL 800 (as a balancing figure that then reduces your 3,400 tax expense to that of the answer at 2,600)

Actually I spent 1 hours fighting on it and self-made a way to work on similar question might happened next time

I use the provision of deferred tax liability as draft provision
and then excluded any items( in draft provision) nothing to do with profit or loss
I can get the deferred provision truly related to tax expense
Then use deferred provision which truly related to tax expense, to reconcile with
trial balance of deferred tax liability
and finally comes to the figures of (800) reduce at income tax expense

My self solution extracted as follows :

revaluation of Leased property 1560

+ carry amount over tax base 2400
_______________________________
Draft provision 3960
– revaluation of Leased property (1560) ……. charge to equity, no profit or loss
____________________________________
= truely provision 2400
– debit balance of deferred tax (3200) … overprovision
______________________________________________
credit to profit or loss (800)

Hope my solution is consistent with logic of sir yours (=^_^=)

and thanks you again ~~

[York Huang]

Tutor ~

Could you recommend some study material related to subject of disposal group !

Because I found relevant content in Kaplan and BPP are too few to prepare exam

[Author]

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