ACCA Paper ATX December 2020 Exam was.. Instant Poll and comments

Hi did anyone do the Irish ATX exam?
How did you get on?
Hoping for a pass although some parts in section A were tough (especially the 7 mark question on liquidation) ,the rest of the paper wasn’t too bad and i’m hoping those question see me through

Q 2 3 and 4 were ok. The first question was a disaster for me, other than ARF. Fingers crossed didn’t cost the exam!

yea i thought the 35 marker was tough enough… against the clock too… think the first q was about the individuals buying the property or the company.. i said the company should sell it as they could use the loss the indivuals cant cos its ringfenced… i didnt give ER or RR to the guy selling the the premises in Galway? but gave ER to him selling his shares on liquidation… what did yee come up with?

for Q 4, the second disposal, was that the holding co exemption? i think the first disposal was a clawback of the Gain that they would have originally got in teh group..
For the gift/inheritance i gave your man PPR Relief, said in my reccommendation, they should get married so that the prop can be given to his wife with no tax triggered, and the children can get GT1, Didnt give them CT3 as they already used it up with the firs give they got from their mothers aunt, but dunno if i was right…

oh yea missed the same event credit…. got its soo hard remembering it all!! yea fingers crossed for the 50!

yup thats it! i said they should wait to sell for another year and then no clawback…. Good luck too! im soo bad for the postmortum of the exam but it makes me feel better 🙂

Me too!

I’m terrible at remembering exam papers & also missing some of the mark allocations so please correct if possible.

Question 1 – 35 marks

a) partnership loss – relief options available (5)
B) whether incorporation relief should be disclaimed (15)
C) iht on gift of cash to son (6?)
D) unexpected income tax refund (5)
Formatting (4)

Question 2 – 25 marks
Salivo? Expanding business – either by renting new machinery or by purchasing with loan

a) i) State Loss relief options available £20000 loss (?)
ii) Explain & determine best use of £20000 loss (?)

b) Compare after tax finance position after 7 years of trading depending on whether the asset is rented or bought (?)

c) Flat rate/annual vat scheme & affect on vat liability on leaving the scheme (specifically in relation to rent paid on machinery?) (?)

Question 3 – 20 marks

Tom Juliet & Opal
a) i) eligibility for remittance basis (3)
ii) remittance basis vs arising basis (?)

b) IHT implications of electing to be uk domiciled for iht purposes (?)

c) Determine residence status of daughter (5)

Question 4 – 20 marks

a) single company

i) final 2 accounting period loss
ii) explain best use of losses and state unrelieved losses

b) winding up

i) periods of account (3)
ii) amounts distributable to shareholders (4)
iii) corporation tax implications of distribution to company with 6% shareholding (3)

Residency part was only 1 out of 2 ties i believe.

1 night spent in uk accomodation available for more than 90d.

Her parents dont qualify as close family?
Started work in march so not substantive work

Remittance basis – i put no rb charge as only 2 prior uk resident tax years. Unremitted > 2k so she has to claim remittance basis ( it wont be automatic). Claiming means loss of personal allowance and annual exempt amount vs not claiming (arising basis) means use of personal allowance and annual exempt amount.

Does the remitted gains go into capital gains or nsi?

Anyone take ATX MYS here?

On the IHT gift to the son, there were no dates for calculating taper relief were there?
I put the gain with the income for a rising basis too and said no later or remitted income under remittance basis.
So opals parents don’t qualify as uk family test?
Shame I put yes for that one. 150 days in uk plus 2 ties.
The personal tax on the first question amd the incorporation for 15 marks got me stumped, mind went blank really. Said the profits would be split equally on first part. And She was eligible for ER as she met 2 year and 5% if she thought about reinvesting in further business assets.
The accounting periods on the loss question, I put there were 3.. one ending when winding up started, one when trading ceased and one when winding up finished.
I was on about ten minutes to do the last question.. did proceeds less cost 63 less indexation less 12 deferred gain, ct and what was left to shareholders?
10 marks for the losses- it Said and do I carried final 2 periods losses back but terminal loss is just carrying the last 12 months back I think.. hopefully still get some marks on that.
Then the last bit was the effect on CT for Mercury ltd was it?? 6% holding. I said ER available but the mentioned about the payment being a distribution.. had seconds left so my mind was racing!
The rent v buy question got me I thought I was so confusing how it was written – spent ages on it and should have left it really and come back .. hey ho!
For domicile effects I said she would have whole of husbands estate at NG/NL if elected but then it’s not revocable so effects would be that her overseas assets would be taxed under uk IHT too not just her uk assets on death.

Re liquidation question part c: it was held by a company if i am remembering correctly. I put that it would be a capital distribution & less than 10% shareholding so no relief available?

For the terminal loss question: what did you do with the capital loss? Does it set off against trading income in the same year? I wrote that it can’t be carried back, not sure if thats right. Did we have to include unrelieved qcd in the final figure?