- This topic has 43 replies, 16 voices, and was last updated 4 years ago by
.
- Posts
Pretty much agree with you on everything else though.
Eis was near the end and I’d lost the will to live by then but think there was something to cling on to re the sale happening less than 3 years. Also that the deferred gain on the painting(?) Would become chargeable on the sale.
Yeah I’d not done any question practice on it. The gain on the painting I deducted from the “base cost” of the shares. I got confused with VTC’s and stated 5 years instead of 3 for clawback, realised as soon as I walked out.
I found this exam hard because normally where I would comment on something during question practice the examiner had already said “don’t consider it” so I was struggling for things to say.
In all honesty I don’t think I’ve passed, I’m not feeling very confident at all but I attempted every question and I seem to have said the same kind of thing you guys have so we can hope!
Also, in first question, he only had one tie that his family was resident in current year, all other ties were not satisfied, neither work nor house
Therefore considered non residentNo Amman . There were three ties.
1. Wife and daughter
2. Was in the UK more than 90 days in EITHER of the previous 2 tax years.
3. Stays in available home at least one night in tax year.Was previously resident so based on the days spent he spent during tax years he needs 2 ties.
*Was previously resident so based on the days spent he spent during the tax year he came back to the UK he needs 2 ties to trigger residency.
@tonim said:
Yeah I’d not done any question practice on it. The gain on the painting I deducted from the “base cost” of the shares. I got confused with VTC’s and stated 5 years instead of 3 for clawback, realised as soon as I walked out.I found this exam hard because normally where I would comment on something during question practice the examiner had already said “don’t consider it” so I was struggling for things to say.
In all honesty I don’t think I’ve passed, I’m not feeling very confident at all but I attempted every question and I seem to have said the same kind of thing you guys have so we can hope!
This was the most annoying part of the exam. I was reading the question and I realised a relief only for the next sentence to tell me either the person already considered that relief and/or don’t consider that relief! It was quite annoying in that sense.
For the residency I just looked at the tax table and considered those residency tests. I also remembered one important tip that as long as your principles and conclusion are right, you don’t need your calculations to be correct. So that helped a lot.
@pakc1981 said:
No Amman . There were three ties.
1. Wife and daughter
2. Was in the UK more than 90 days in EITHER of the previous 2 tax years.
3. Stays in available home at least one night in tax year.Was previously resident so based on the days spent he spent during tax years he needs 2 ties.
Well it was mentioned in the question paper itself that he was not a resident prior to the year.
Plus the conditions for ties are
1) any family is resident
2) live in UK for substantial work for atleast 40 days
3) stays in UK home for continuous 90 days
4) lives in UK for more than any other countryHe didn’t satisfy any of the ties except 1st, and you need to satisfy 3 ties, this is what the Kaplan textbook says.
hi!
I did the same, however, the question asked how much the liability is reduced by the included PPC. The liability actually increased after PPC due to the extra charge so that confused me. However, I later realized that we probably should’ve added another year allowance as 3 years is allowable- just no information was given on occupational pension before the last year. The 3rd year allowance of 40000 would not have added another charge and liability would’ve been lower. I couldn’t figure it out in the exam but I think its what should’ve been doneI can’t remember exactly but I think my ties were:
1 – his wife and daughter
2 – that he had spent more than 90 days in the UK in any of the prior 3 tax years (he was previously resident)
3 – he has a house in the UK which he lived in during the tax year.You’re right. The question stated that it wasn’t his only home, but this was for the automatic UK residency test, not the ties tests.
There is an additional tie where a person was previously resident and you need to look back 3 tax years which is why they gave you the amount of days he’s been in the UK for three years.
The liability decreased for me.
You’re allowed to bring forward allowances for 3 years providing they are a member of a pension plan, however his employer had only been contributing to the plan for the two years;
2018/19: 40,000-8,000 = 32,000
2019/20: 40,000-8,000 = 32,000His basic rate band was increased by the 85,000 meaning that he was takes more under 20%. Some of the ‘annual charge’ was at 20% and some was at 40% for me.
However, it still created me a saving on the tax liability: I pretty much just did an income tax computation including the £2,000 throwing in the nil rate band hoping it would get me a mark.
He had no personal allowance (which they asked you to mention) because all of his income exceeded £123,700
Either way I might definitely be wrong, as I said I feel like I’ve messed it up.
I sat this with AAA, and I was mentally exhausted.
I think I did okay on AAA, meaning if I’ve failed ATX I’ll be my only paper to sit until I’m done. If I’ve failed I’d like a contingency plan: anyone like to be my study buddy for the June sitting?
Yep this right. You got it right! Most of the rest of what you said about the other q’s was right too. Let’s see how we do, hopefully we’ve written enough stuff to get to 50!!????
- Topics: 0
- Replies: 1
- ☆
Hey,
I thought you could only bring forward any unused Annual allowance (£40,000 limit) providing the individual was registered to a HMRC approved personal pension scheme?
If I remember correctly, the employers contributions were to an occupational pension scheme, therefore wouldn’t have any impact on the personal pension scheme limits? I thought the employees occupational pension contributions simply get deducted from employment income.
I didn’t bring forward any unused annual allowances from the previous years as I’m pretty sure he wasn’t registered to personal pension scheme in the past therefore the current year pension contribution of £85k exceeded the allowance completely.
(i’m not saying that any of the above is correct, just from my understanding) 🙂
Everyone gets 40k a year. This can be reduced dependent on income to a min of £10k.
You can carry back if you’re a member of a registered scheme. Which in the question he was. The two 8k payments made would reduce his annual allowance to £32k in each year.
It’s not a personal pension limit (allowance), it’s all pension contributions.His liability decreased dramatically for me from like £41k (as given in question) to £23k lol!!! Which is questionable because any tax differences in these questions usually aren’t that great. But then again I had just 20 minutes to get through the question!!!
Ahh this exam was such a hit and miss – I’m hoping for the best. Overall I thought half of it was really hard and the other half was really easy?!?
I’m an independent student – just use books and online papers 🙁 can do with a study budy tbh… I’d love to be able to do like past papers at the same time and then share answers and explanations – I feel this can really help.
Anyone wanting to study as a pair or even as a group (Whatsapp group or whatever) give me a shout!
I’m hoping for the best – I just really need to pass this! Keeping an open mind…
His personal allowance wasn’t available without the pension contributions, but with the pensions he certainly did have it because of this calculation from the top of my head:
Net income 172,000
Less: Gross pension contributions (big figure which brought his income below £100k)
Adjusted Net Income (<£100,000)
So I gave him the personal allowance.
I thought about the tapered relief but just went with this – didnt want to spend too much time!!!!
- The topic ‘*** ACCA Paper ATX March 2020 Exam was.. Instant Poll and comments ***’ is closed to new replies.