Forums › ACCA Forums › ACCA ATX Advanced Taxation Forums › *** ACCA Paper ATX March 2020 Exam was.. Instant Poll and comments ***
- This topic has 43 replies, 16 voices, and was last updated 4 years ago by vikar.
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- March 3, 2020 at 11:00 am #563819March 3, 2020 at 2:13 pm #563865
Hi All,
How did you find the exam?
March 3, 2020 at 2:28 pm #563870I thought it was really hard. Didn’t manage to complete the 10 mark pensions question at the end as I ran out of time.
Disappointed with the questions.
Feel I’ve learnt so much yet wasn’t examined .
I know I’ve made mistakes but I felt so under pressure with looking at the clock. Felt it was more written answers than calculationsMarch 3, 2020 at 3:04 pm #563876I can’t remember what the 2nd question was but it messed me up
March 3, 2020 at 3:42 pm #563891I found it so time pressured.
March 3, 2020 at 3:45 pm #563893Q2 was:
Shares to brother
R&D and trading loss. I think consortium ??
PE
Maybe other stuff too?March 3, 2020 at 3:51 pm #563898The paper wasn’t too bad, least I understood the majority of questions compared to previous papers. Problem for me was time management as I missed a bit chunk out of at least 20%. I got stumped on calculations but should pick up a lot of marks for explanations. I think it will be close.
Question 2 was my strongest – it was R&D relief, tax treatment of intangible asset, TTP calc, relief of the loss and how much could be given to Porth, Overseas purchase of services and then election to exempt overseas profits and advantages and disadvantages.
Can anyone remember Q4, part a. I know it was FHL and pensions.
March 3, 2020 at 4:05 pm #563914Section A was better than Section B
March 3, 2020 at 4:18 pm #563919Ann Marie was there consortia in the loss relief as there wasn’t a loss group etc or was I a million miles away
March 3, 2020 at 4:22 pm #563921I think the other part to q4 was the gift of the cottage and (I think) gift with reservation. He’d paid iht and she’d died 10 years after the gift!
March 3, 2020 at 4:24 pm #563923People saying consortia in Q2 for Ryb Ltd. Wasn’t it CFC? Permanent Establishments and exemptions pointed towards that
Q1 Residency rules I didn’t study much otherwise that was an easy 9 mark question
Q3 and Q4 were reasonably easy. Especially Q4. IHT and PPC and adjustment of PA due to PPC. PPC was 85000 so I used this year’s Annual Allowance and last year’s of 40k so total 80k not 85k. Annual Allowance Charge for the balance of 5k
Too time pressured. Could not even finish off the Memorandum wasting an easy 1 mark
March 3, 2020 at 4:27 pm #563925The FHL was a GWR but she only lived rent free for 2 months so that was a bit confusing but I added it to her death estate anyway as her son said he doesn’t know why he had to pay tax on her gift ?????
March 3, 2020 at 4:38 pm #563929You’re probably right. I thought the company was a UK Res co with a foreign pe.
With the pension bit his company had put £8k per year , so wouldn’t that count towards the £40k, i.e 40-8 = 32 for each year.
85 – 32 – 32 =21k charge
March 3, 2020 at 5:04 pm #563939Pak – I went with consortium as the question was on losses and as it was only 60% owned it didn’t form part of a 75% loss or gains group so then only other group I know that can relieve losses to each other is a consortium.
I only learnt the CFC rules as to what one was and the CFC charge calculation and exemptions. I didn’t read anything about losses of a CFC company.
March 3, 2020 at 5:22 pm #563945I remember that being the case too. I’m sure the 3 companies it owned were all UK resident too.
March 3, 2020 at 5:30 pm #563948Q4. IHT and PPC and adjustment of PA due to PPC. PPC was 85000 so I used this year’s Annual Allowance and last year’s of 40k so total 80k not 85k. Annual Allowance Charge for the balance of 5k
i think there’s no ppc annual allowance b/f as his not member of register ppc hence annual charge applied to excess £40000 of pension contribution. many am wrong though
March 3, 2020 at 5:46 pm #563953Annmarie. I think you’re right. CFC charge would only occur on divs from the foreign co to the UK if the tax rate was sufficiently low etc and there being a UK non res entity involved. there was no 75% loss or gains groups so i’m sure it was getting at consortia.
March 3, 2020 at 5:47 pm #563954Full 80k cannot be considered, as employer too contributed 8k every year. Therefore effective limit would be 32k PY+ 32k CY = 64k
Excess 85k -64k= 21k should be taxableMarch 3, 2020 at 5:49 pm #563955But he received a payment in the prior year to his pension of £8k, the following year £8k. This has to reduce annual allowance.
He can contribute whatever he wants to the private pension but if he excess his allowance he’s liable to the charge on excess.
March 3, 2020 at 5:49 pm #563956Agreed ( I think haha)
March 3, 2020 at 5:52 pm #563957Can it be considered consortium? Since one of the member to consortium is individual, I read in one of the past year paper. They didn’t go for consortium as it is applicable only for companies
March 3, 2020 at 5:57 pm #563959In the question there was an option that it was either the individual or it could be the company. John or JJB limited , something like that
March 3, 2020 at 6:30 pm #563967I can’t really remember to questions but based on the above;
Q1: residency? I stated each of the automatic requirements and concluded he has 3 ties to the UK. Gains arising overseas and in the UK: I spoke about temporary non-residency as it had been 5 years.
PE, I concluded that profits were taxable in the UK.
Death tax: I spoke about gifts with reservations, didn’t really know what to do with the 12 months however the cottage wasn’t let out until she died. I said that the amount of time she stayed in it was taxable?
I calculated the loss for consortium 60%.
I concluded that there was a 21,000 charge but I also adjusted the basic rate band as he was contributing to a personal pension plan. Didn’t have a clue what to write for the EIS but I tried to talk about it.
I calculated the research expenses 230% and spoke about the loss relief available if they didn’t claim the 14.5% rebate. Didn’t understand why they spoke about the contractor? It threw me off a bit.
March 3, 2020 at 6:35 pm #563969Contractor bit was so you restrict the additional relief specifically in relation to the element of the staff costs.
100% + (65%*130%)March 3, 2020 at 6:40 pm #563971*to that element (i.e the contractor)
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