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Quite hard exam.
It seemed they were testing losses arising and reliefs on them but I had no idea about the reliefs on losses?
time cut me short, i just rush through question 3 and 4 without taking my time to analyse the questions, so i lost the easy marks in questions 4, which was the easiest question.
Absolutely horrible, my first options paper and the jump from the other exams is horrible.
Q1 – I completely tripped over the question – could not deal with it being sold at a loss.
I found that lots of really obscure parts were examined and not much on the usually common exam topics came up – I really wanted more IHT and employment income.
Just want to know my result now but not hopeful!
Very tough exam. I also felt a lot of it was quite niche.
The sale of a company at a loss really flummoxed me. My last exam so I just want the pass, don’t care about the score!So thinking about it the Substantial Shareholding Exemption will apply. But I’ve never seen this examined in relation to a loss so didn’t consider it during the exam. I did a lot of past questions – every SSE was about a gain.
I agree – i mentioned SSE and that the loss wasn’t allowable, there just would have been so much more to talk about if it was a gain!
I didn’t even think about it for a loss. I thought SSE whilst reading then saw loss and just deafaulted to thinking Group Relief/Gains Group.
Oh well. I think that only counted for a few marks in part a!I thought it was easier than June’s exam but maybe that’s because I wrote all the wrong things!
I mentioned SSE in regards to the loss which is a good thing!
Anyone know if the paper will be up on ACCA website soon? I can’t really remember the questions but want to do them myself with text book in hand.
The question with the non-domiciled husband was quite easy I thought. I even had time to check that the answer that our Tax manager in the question was right (it was…)
Hi All
Really tough exam for me; here is what I can remember..let me know your thoughts..
Q1
a – I wrote about how SSE would apply and the loss isn’t allowed
In regard to selling the trade assets, I calculated the base cost of the building (oribi I think) with the revised based cost as ROR was used previously. The other building was NGNL as within group but would be chargeable when the company is sold.I remember something on VAT regarding the buildings? Spoke about how <3 yrs is auto but in general exempt, if they opt in VAT is claimed on the input running costs etc, also if they opt the selling price may be pushed higher and will also give them a cash flow advantage
.The tax avoidance/evasion was pretty straightforward.
Q2 – Tough – I only calculated the tax for Dee and not her husband who was UK res but non dom – what did people do for this?
Couldn’t remember the part about the gift… I pretty much summed it as the husband is a basic rate tax payer therefore should receive more of the share to utilise the lower tax brackets
Q3 – Cant remember, mind is blank!
Q4 – couldn’t remember a great deal, although how to deal with the motorcycle bugged me!! Its a capital gain for the individual right? No sure on the company…
@arandomwelshguy said:
The question with the non-domiciled husband was quite easy I thought. I even had time to check that the answer that our Tax manager in the question was right (it was…)Just calculated it again, it the tax manager said £3,342 if the full amount was invested by the spouse as there was no SNRB available as she was an additional rate payer but DNRB is always available so Additional rate tax on interest was £675 and on dividend £2667. If split £150,000 to husband and £300,000 to wife, the husband pays no tax as SNRB and DNRB will cover both investments as he was basic rate payer. Total tax paid by wife was £1,593 so tax saved by splitting was £1,749.
Hi Everyone.
This paper was fair, i feel. I am rubbish at recapping what the questions were or what i wrote. Generally what happens for me, i sit paper, write for ages. Come out of the exam. Take the afternoon off in a slightly dazed way. Get upset about five hours later and then eat junk food, collapse in a big heap (then the best bit) try to forget about it!!!
At the moment i am probably still an hour away from relaxing!
I have to say thought, i really enjoyed studying this one, i mean really enjoyed it. I woke up thinking about it, went to bed excited for the next bit. I loved it 🙂
I did cover the incorporation relief and said to myself that it had never been tested before, and as such was unlikely to come up again, but i had learnt it so that was ok. I also had the same when i learnt about gift relief, thinking it never got tested and it was fine to know that i could just park that pearl in my brain. Both these came up today, so i was like “wow”!.
However. I did my questions backwards. 3, 4, 2 then 1. 2 and 1 were a blur, and now i think it might have been better writing in Klingon, it might have been worth more points!
How can someone enjoy the subject as much as i did and still feel mighty sad that i couldn’t deliver on the day, oh well.
Hoping for the very best for everyone. Good luck 🙂
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It was toughest paper that ever i attempt in my ACCA.
That was not a exam paper.
That was the divorced paper of examiner’s sister. In which he asked from us to find out the reason of divorce. We were unable to tell them.?????
ACCA is just now a money making body.How did you guys explain the ISA for Q2,
and the gift of £20,000 cash deposit to son. How would Cam’s domicile status still make the 15,000 given by his wife be subject to IHT?@arandomwelshguy said:
Just calculated it again, it the tax manager said £3,342 if the full amount was invested by the spouse as there was no SNRB available as she was an additional rate payer but DNRB is always available so Additional rate tax on interest was £675 and on dividend £2667. If split £150,000 to husband and £300,000 to wife, the husband pays no tax as SNRB and DNRB will cover both investments as he was basic rate payer. Total tax paid by wife was £1,593 so tax saved by splitting was £1,749.Great guy!
Q 4 was the most easiest one . The only thing I did wrong is that I said that BPR will not be available becase the father is dying at some point before two years from the date of gift
Q 3 was OK . Again , I made a mistake saying that was a capial distribution instead of dividend
Q 2 is most toughest . I suggested that husband should obtain deemed domicile because he was UK tax resident for 17 years to avoid IHT for cash received from wife.
Son could obtain relief \exemption from IHT for 20,000 received from mom because she used regular cash not from the sale of home. Son may invest into ISA all 20,000 to exempt interest from IT.
EIS & VCT was OK but mixed them , 30 & 50% reliefs for IT .
Q 1 is mixture . Gain for each building is OK but I calculated gain for both buildings which is wrong. I also included in proceeds net current assets (wrong , not capital items) and equipment even the examiner asked not to include the equiipment in calculation.
VAT was ok , just mentioned to opt for VAT to recover all input incurred during the purchase of building because the were both new at the time of purchase.
Tax avasion and avoidance was straigtforward – obtaining 180% capital allowance seems to be tax avasion.
Loss on shares – just said that there is relief but did not mentioned SSE . Is SSE applied to a loss ?
My last paper and is horrrible . I passed P 7 easily from 2nd attempt could even done it form the 1st sitting but this one is tough . June 18 seems to me much easier but I scored only 27. Very pessimistic that I passed this time . Thinking about switching – P 4 or P 5 which is the easiest – who can tell me ? Thanks in advance.
Hello All Exam was quite tough for me also, it was quite lengthy not getting enough time to think and write. However I have Notes for ATX which I found on another site if anyone of you need it let me know. You can drop me an Email on singhbani.13@gmail.com for notes.
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Very hard.
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