- June 8, 2018 at 11:24 pm
id you write bout research development lossesJune 9, 2018 at 2:55 am
I wasn’t too sure so writ what I mentioned in my previous post.
For 7 marks I assume they wanted 7 points on how to relive the losses and how you would choose which is best. I’m sure most of this is to do with R&D.
The only decent points I recall making was they can elect for the tax credit of 14.5% but I don’t think I mentioned what that would relate to ie how much of the loss you get the credit on.
The options as far as I’m aware are the standard carry back, carry forward and the tax credit. Though I may have said to group relieve the loss which I’m not sure you can do!
UPDATE: a google search is suggesting you can group relieve the R&D loss too which makes my answers argument that a better to group relieve and save 19% CT then take a 14.5% tax credit.June 9, 2018 at 7:18 am
In Q2 Part C. it was large company so ALT must be 11% rather thn 14.5%. and In Q 4. Gift relief will be crystallize when transferor become non resident following the 6 year from date of transfer. So when Max leave UK GIFT relief will crystallizeJune 9, 2018 at 7:34 am
It wasn’t a large company because the question specifically said some of the R&D expenditure would qualify for the 130% extra credit, which means it was a Small or medium company.
I think I said it could use current period loss relief, then it could carry back. Or it could group relieve or use R&D 14.5% tax credit against its surrenderable loss. It would need to consider timing of relief, amount of relief and also loss of any potential qualifying charitable donations. Not sure I got all the points to it, but hopefully got most of them.June 9, 2018 at 2:37 pm
I think the comments above confirm I have made a pig’s ear of my exam to put it politely!! Just a question with regards to the iht question you guys said you deducted the annual exemptions related to the pet, I thought since we were calculating the maximum iht liability, I assumed it meant therefore it would no longer be a pet if iht was to be calculated ie worst case scenario he died, therefore annual exemptions only available during lifetime. I never included these in the value of the gift. Did everyone include these?June 9, 2018 at 4:02 pm
A PET always uses the Annual exemption (unless it’s already used), so for example £26k transfer less the AE for current year and previous year of £3k each leaves a gross chargeable transfer of £20k (not actually a GCT during the lifetime of the donor). On death, the £20k figure is used because though an annual exemption is not available on death, it was utilised on the lifetime transfer. That’s my understanding anyway.June 9, 2018 at 4:53 pm
Ah makes sense. Am sure I have done terribly! Glad it’s all over nonetheless!June 11, 2018 at 5:58 pm
I thought Q1 was relatively fair, other than the tricky IHT value which I hadn’t done anything on really either.
I then attempted Q2, Q4, before leaving Q3 until last.
The lack of choice between questions threw me slightly, I definitely didn’t do well on Q3 I thought it was horrible.
I also hadn’t really done anything on CFC’s so just guessed that one.
I thought the R&D question was tricky also, I couldn’t really work out what they were actually asking?
My initial thought when I came out was that I hadn’t quite done enough but wasn’t too disheartened as I would keep it fresh and do it in September alongside my Strategic Business Leader exam but I’m absolutely gutted to find out this morning that ACCA UK have changed their exam days and they’ll be on the same day in September so I can only sit one.
I was due to start my SBL course tomorrow night but I haven’t got a clue what to do nowJune 11, 2018 at 6:09 pm
Does anyone know when the June 2018 answers will be online?June 14, 2018 at 3:49 pm
I so agree with you: I though I did well until I saw Q1, which I left till the end… Time pressure got to me and I couldn’t focus. I hope the rest of the questions will push me over the lineJune 20, 2018 at 6:17 pm
Hey Guys… I am planning to sit P6 UK on September … and I am doing self-study as well…. but I could not found online videos on OT… so if anyone can help me to provide any useful link or recorded videos ( firstname.lastname@example.org)… it will be a great help to me …. Many Thanks
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