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well u seem u prepared very well. my answers were almost the same to urs except the permanent establishment(i skipped that).
and that any no. of directors can be participators is right so yup.
i feel like time was an issue as with all acca papers, but a doable paper with very little technical questions and much more foucessed on the basic tax rules.I knew loads of stuff for this exam but new very little about close companies and overseas companies. The syllabus is just so big.
I would have loved a question on groups and buildings like other people got. Didn’t realise there was more than one paper???
Hoping for a borderline pass but doubt it. Going to keep on doing the exam kit anyway otherwise I will forget all this in my head.
Tip from tutor that helped me: copy the requirements into your submission document – then close the requirements tab. You can always then delete after you have answered.
Good luck with the results everyone!
Was hard, yes I had the 18k loss question. I only thought of two options, CY then carry back or carry back only
That sounds like a very bad experience. I absolutely agree on the tiny screens and the amount of information you need to look at. You need to have the email from the client, manager and the requirements out + the spreadsheets and word document to actually answer. You are left trying to minimise to a point where you can read everything and its not really a sufficient way of you being able to answer the questions adequately in the time limit. I know this is the first year of CBE exams for professional papers so maybe they need to have a hard look at that. I don’t think I’ll be taking another exam until masks are not required as I really struggled with the heat, breathing and being able to think clearly with it on. That’s not to say if you really know your stuff you can’t pass. I don’t think your complaint will fall on deaf ears as I can see a lot of people giving bad feedback on candidates ability to read and answer the questions.
You must’ve been a couple of desks away from me in Southampton!
I nasty experience in general and yes, I did notice that poor girl having a melt down – the hardware was appalling – not enough real estate on the screen and I dread to think how much time I wasted trying to format, copy paste, highlight with that mouse – I gave up on the second question and tried to plough through.
Failed exam as little or no attempt at 4th question – bit of a shame but such is the exam!I agree with this. Depending upon the time you sit your exam, you are given different questions
I did not get the CFC and permanent establishment question which a few people did on here and that is one of my strengths.
It’s not fair Acca can change the questions at this level as its not level playing field. You can get lucky if you sit in a different session and turns out to be a question you were hoping for as opposed to another person who sits in a different sessionThis if from memory so correct me if any of this is wrong!! I got: (some of this probably is wrong!!)
Q1) sale of land and buildings – group losses:
– building 1 couldn’t use lose as PECL
– building 2 can’t use as in group NGNL transferBase cost of building 3:
– received in NGNL in old group so will be original costThis loss can be transferred but only 9/12 as time in the gain group wasn’t full year
SDLT – payable on NGNL on building 3 as they left the group within 3 years
VAT on buildings – only if opt to tax (wasn’t) or commercial building under 3 years old – only applied to building 3
Ethics – ok to use prior knowledge? I put yes as provides competence as long as it doesn’t breach confidentiality or create a conflict of interest? Get consent off both parties for acting for two in the same industry?
Q2) income tax savings on gifts
– dividend income for one opposed to the other On gift of shares
– rental income if house gifted – I thought DTR must be on UK tax due to the amount she received?? This might have been a bad guess!!! HahaER v GR – ER doesn’t defer but charges 10%, while GR defers gain to recipient but could be 10/20% depending on their banding at the time –
CGT for gift of house I believe – gain = MV – Cost + capital expenditure – no GR as not QA so change CT at time I think
IHT question – I definitely got the NRB on gift incorrect as looked at transfers from 7 years from death not the gift date but outside that:
AEA CY and PY
NRB at death 0 if gift made
Fall in value relief for house
No taper relief as died within 3 yearsQ3) trading loss – can be used CY or PY or CY claim v gains
Do a working for all three above – I split rental income between years using cash basis but incorrectly said PY had to be after CY – hoping it doesn’t cost me too much!
CGT on warehouses – CGT/IT implications – I went for ROR but only for 75% as business use so deferred some of the gain
Forklift cannot be used for ROR but will have capital allowances so IT implication is a deduction of full value due to AIA – again could be wrong!!
Group VAT – not sure on when but same rules for filing so no extension and annual accounting not available
Q4) I had a shocker on this one!
Why a close group – 5 participators must have control – I got 5 to not come to 50%? So went on about control not only being shareholding
Someone help as this one is annoying me!!!!
Loan – date change changes when company gets tax paid on loan back and when loan becomes dividend income for individual? Taxed as HR on 32.5% due to banding
Two options – taxable benefits become dividends, parking exempt, mileage allowance doesn’t cover all fuel costs – I missed the interest free bit being a benefit!
VAT filing – I got the penalties wrong I think after the 100 fixed penalty but filing date was 3 months after notice
Please feel feee to correct me and throw additional information in – just trying to see how this lines up to others!! I am not happy with how I did and would not be shocked to be doing this exam again come December! Hope you all fared better than me!!
I got exactly the same sitting as you Conor, great memory!! It was hard but sounds like you did enough to pass, I’m hoping I did too but reading these makes you question it haha..
Wrt the close companies, I was lucky I read it as going into exam.. it’s any numbers of directors and 5 or fewer shareholders.
In this case Dorians dad owned shares, therefore he and Dorian became one individual. In this case this made it a close company.
It’s my last one so I’m praying I won’t have to do it again!
Might have been my maths!! I added him and his dad together and got 28% then I thought all the other shareholders had 5%?
More likely I’ve misread it! But obv based on the above I got 48% between 5!
Also sure you’ve done fine – hopefully you qualified!!
If all the above is correct then I should be fine but I question a lot of it!!!!!
I did the same exam as you conor,
Q1
I had the same answer for building 1 and 2 but as 6 years hadnt passed for building 3 i thought there would have been a degrouping charge and therefore the asset would be valued at the market rate.Had the same answer for ethics too, about separating teams and not sharing any confidential info
I forgot the aea on the iht question which im now kicking myself about, funny what the pressure does to my brain what a silly error to make!
Q2
I was sure for dtr either, there was a note in the memo about it too but i didnt understand what it was implying! I added 29% of the rental income back as tax saved presuming she wont have to pay that if she gifts the house.Q3
I also went for rollover relief, i apportioned the gain to 1/4,l that was immediately taxable and also i think she only reinvested 83 not the whole 85 so i chucked the 2k as chargeable immediately too then the rest as rollover, not sure how correct that was.I knew for the forklift about rollover relief but didnt make a point about it which on reflection i should have noted that!
Any reason why you put annual vat wasnt allowable? I put down if they were under the turnover 1350.. limit and up to date itd be good to go .
Q4
For close companies its any no of directors and their associates and the other shareholder was his dad, which i presumed is an associate so that took them over 50% and they therefore have control.I put the taxable benefits as income benefit but youre right on close companies think theyre taxed as distributions
I thought the last bit was about corporation tax filing so mentioned about 100 penalty for late submission then 100 again after 3 months but if this was about vat i was completely on the wrong path ahhaa
Overall abit of a tough exam for timing and not sure i wrote enough points but it wasnt as bad as i was dreading beforehand !
I think I got 61% as it was 28% Dorian + father (5% + 23%), 8% for any 4 of the remaining 2% shareholders, and then 25% for any number of directors (which were 5 at 5% each)
Sorry the last question was CT filing!!! That’s a typo on my behalf!!
I didn’t work out Martha’s gain on the gift of the house as the question told you her saving I believe.
I think annual accounting scheme isn’t available for groups – only cash accounting and that’s apportioned.
There would be a DGC which would be added on to the consideration – probably should have mentioned it – think this makes the CGT base cost the MV at the time of gift. Think you’ve got something I missed there for sure!
For close companies did I read a percentage wrong? Was his and other 5 directors 5% then his dad 23? As should be control between 5 right – so Dorian plus 4 others?
For martha yeah it was for the saving i agree i just presumed she might pay dracian tax on the rental income from the uk so i put that shed save that amount too.
Oh damn i didnt remember that about vat annual groups, i think youre right! I waffled on for ages about that too haha oops!!
For the close companies, its a close company when theres five or fewer shareholders or for any amount (not
just five) when theyre directors and associates, so i added Dorian, his dad and the other 5 and it came to just over 50 so meant they had control – i cant remember the exact amounts
I got lucky with this one as id read this in the morning before the sitting!
There were some pretty niche little questions to be fairAhhhhh damn! I thought it had to be 5 or under shareholding’s so I got to 48%!!! I then waffled about having control of the boardroom and decision making to prove control so may get a mark or two ahha
Hoping for stuff like forgetting DGC it costs me like 1 mark from 5 but very hard to tell!! Like your VAT miss is 1 mark tops anyway!!
A lot of questions on small revision areas in my opinion!
Think there was also an SSE question in 1?
Didn’t have it as their shareholding dropped below 10% more than 6 years ago if I remember rightly
Trying to remember the mark splits but escaping me
Yeah precisely! I mean if you go in another direction hopefully theyll give you follow through marks if youve backed up what youre saying kind of thing.
Oof i missed the fact theyd dropped below the 10% i put theyd owned more than that for 12m in the last 6 years so they qualified!
Hey you cant win them all i guess !!
Yeah I agree really tough! I nearly did the same until I check when they went from 14-8 but again if it’s for 4/5 marks? You should get 1/2 for conditions anyway you’d think!
Im now thinking did i put 5% and confuse it with ER! So many possibilities ! Will have to see how results day turns out to find out i guess
Hi Claudia, just to say thank you for the advice on AAA which you posted. Had an audit risk question for 26 marks and all I remembered was your comment on open tuition.. To leave it at about 55 mins and move on. I did just that and I managed to complete the rest of the paper to time..!!! My next one is SBL… Did you manage to sit SBL as well on top of tax..?
Ah I’m really happy to hear that!! Time management is so key with AAA isn’t it…
I couldn’t sit SBL with tax in the end as they were at the same time 🙁 but will be sitting it in December, my last one (all being well with ATX yesterday!)
I already know you passed ATX as you pretty much passed all the rest I have seen on OT with good scores! Will need your advice for SBL in December because I am taking mine in March 2021 as I have a project report to submit under the accountancy and taxation apprenticeship! Then am done!!
Good luck!Oh my! I couldn’t agree more about London Oval centre. I have put in a centre complaint and mitigating circumstances!
1. Queuing from 12:45pm to 15:00pm when exam start time was 14:30pm
2. Centre wasn’t hygienic and toilets weren’t clean.
3. Too many students crammed into the centre with desks everywhere and cables all over the floor not safely taped down! Major trip hazard!
4. Bags left under desks – never had that before!
5. The generator noise was unbearable even with earplugs.
6. The hardware was awful, mine was slow and kept freezing
7. A student next to me had their phone ring mid exam and was allowed to turn it off then text someone! And then could carry on their exam
8. Students finished at different times and were allowed to leave!
I won’t list anymore – complete shambles from start to finish!
Damn, sounds like everybody had a rough time. I may be sitting this in December. Any advice?
Make a start on it now – it took me 6 weeks or so to get through the basics. Only left me with 2 weeks of past exam practice which isn’t enough to cover all the various bits of tax.
It’s not as complex as you might think, just requires coverage but also depth of knowledge which makes it such a tough paper…
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