*** ACCA F6 March 2017 Exam was.. Instant Poll and comments ***

@amalhotra said:
Yeah!

I see – I can’t remember what I got for that one but I remember putting 1,200 for a similar question. Maybe it’s the same one.

If it’s the same one, the value of the shares at death replaces the original cost. Then you have to see how much between the 40,000 (I think) she received and the cost of the shares at death which was 38,800. As she sold the shares for more than it originally cost, the difference becomes automatically chargeable which is 1,200.

At least that was what I did.

I remember trying to work out one with the indexation allowance from the share pool but my figures didn’t match up to any answer. I guessed 24,000 for that one.

@faze50 said:
For the trading profit question, were you meant to take the proceeds and then debit the legal fees in sale, purchase and capital allowances but add the loan?

For the income tax part on part b, I added the salary and property income as this is part of the income tax computation, is this correct?

For her income i took 7 months of partnership profit and split this 50:50 then the last 5 months i took out the salary for the other partner and split the profit 60:40. then I add the profit income but deducted the £4250 allowance from it.

For the loan i cant remember 100% but I deducted the interest as an expense as it was in relation to the trade

Sophie- I didn’t realise the Partnership was time apportioned, I forgot about that! I took the salary all as one (£4000)and then added all the property income. That’s probably wrong I guess. I didn’t deduct any personal allowance as it was greater than 121200. I added the loan which I don’t think was correct.

Heychi – I also did the full capital allowance working snf deduced it from the proceeds and legal fees on sale and purchase etc.

Yeah, it’s like they had all the capital allowances info, legal fees in sale, legal fees on acquisition and also enhancement costs, why would they be in the question if they don’t expect you to use them?!

I agree, it was a lot to do for 6 marks!

@sophiemuzz said:
The loan isn’t taxable income – it is capital and therefore i didn’t include it in the earnings.

Yeah, I thought so. What did your proforma look like?

For the property business, i treated it as it was a business rather than capital as their business was property development so it should be treated as a trade. I cant remember exactly what legal fees etc I included, but I definitely deducted the capital allowances. from the profit. As it was a partnership as well rather than a company I also only included the business use in the capital allowances deduction – not sure if this is correct though

@ak2401 said:
I found the exam difficult in places as I had done the past papers the questions in section C were very different to anything practiced. I found the questions unclear to what they were requesting. I hope Ive done enough to pass. Sections A & B were ok & i found the VAT questions easy. The one about self assessment was odd though as it stated ‘may’. I found many of the questions were worded oddly & not clear enough so felt a few were guesses. What did people put for the inheritance one about death on different dates? April 2020 & April 2023? I think i messed this one up??

This was another one I confused myself on ha.

I ended up choosing B which i think was that the PET unused, then April and April.

I remember just getting confused in general with PET and CLT. I thought I was pretty solid on IHT so I’m not sure if it was exam pressure.I know CLT uses up the lifetime allowance straight away, but the PET only uses it up if the donor dies within 7 years right? or does it use it up straight away and then WHEN 7 years have passed the limit is increased back again? There was one question to choose between 105,000 and 55,000 of the lifetime allowance available.

@sophiemuzz said:
For the property business, i treated it as it was a business rather than capital as their business was property development so it should be treated as a trade. I cant remember exactly what legal fees etc I included, but I definitely deducted the capital allowances. from the profit. As it was a partnership as well rather than a company I also only included the business use in the capital allowances deduction – not sure if this is correct though

So you didn’t include the property income in your income tax liability then? That’s fine, no worries!

I did the exact same thing did capital allowances as well. It made sense to use the business use proportion as opposed to the private use and then deduct it. One of the cars qualified for fya and the other was main pool (business use)

Also for the lady question on the paper, property income, did you include the premises, I think it was for £50,000?

@faze50 said:
I think you ignore PETs when doing lifetime transfers, they only become relevant for inheritance tax payable on death.

Phew! 😀

@mikeat91 said:
I may be recalling it wrong but this was on a wedding gift to grandson? Therefore there was a £2,500 exemption available. If you went with the nearest answer to a straight 40% you would have been correct.

Agh yes i remember this part, i removed the £2500 as well and then tapered the rest of it!

@msarosh said:
I got confused with that question too ’cause those gifts were from before 7 years. I picked one of the options that had the PET unused, i think it was C, cant remember.

For the other question i picked 105000

I picked 105,000 as well for that one as well 🙂 then for the other one I remember picking C then eventually choosing B lol. Ah well.

@mikeat91 said:
I may be recalling it wrong but this was on a wedding gift to grandson? Therefore there was a £2,500 exemption available. If you went with the nearest answer to a straight 40% you would have been correct.

I remember this one and yup it is £2500 straight out.

The second last question was about advantages of short life assets and the last question was about property income. For the last one you I included all the rent for the relevant year and then accrued the insurance. What did everyone do for the premium?

The second last was about Lunas income tax and last one was for POAs