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Was this the one with a period of 16 months?
You had to split it up into two corp tax calcsl I’m sure. And watch how the adjustments affected each calc, one being 12 months and one being 4 months.
Correct me if I’m wrong though
It needed to split into two caps. But for 6 marks there wasn’t much to adjust. The capital allowances were calculated and just needed to be put into the right cap.
The second part involved more calcs for the 9 month period of account. Regarding the additions were they all offset against AIA?
I did split into two caps too and all my additions were offset against AIA.
I was quite confused with the second part of the question, capital allowance for the 9 months accounts. Was there supposed to be a balancing charge as there were disposals? I didn’t put the BC through at the end but wondering what everyone else did.
Not a BC but you had to make sure to dispose at the lower of sales proceed and original cost. Then WDA the balance at 18% But time apportion to 9 months. I think my total capital allowances was 26k or close.
The property income and interest were just calcs to get them to the accruals basis right?
are all paper based question different as my first C section question was about 3 partners who decided to open up a company ltd so we needed to do income tax cgt for ind and then corporation tax for company and show tax savings…….
I got stuck on the last question in section c I think it was worth 4 marks I didn’t know what to put so unfortunately I had to leave it blank. It was about losses and what the advantages were instead of claim back
Did anyone else get the following section C questions?
• Choosing £16k dividends vs £16k CGT – I got a lower tax liability for the CGT (£5,835 or something), because of tapered PA with dividends and the higher marginal tax rates
• Chord Ltd’s corporation tax done by a junior accountant with queries (got a bit confused about how to account for the capital allowance split, it had a MP/ SRP split for a warehouse but I used the AIA against the SRP first to maximise WDA?)
• Uri’s trading/ employment comp – wasn’t sure about how to account for the £7,300 van purchase in this oneOn the whole I found the exam ok, it seemed to follow the same pattern/difficulty level as the past papers, which was a relief!
I got the 16m corp tax question..
Also one about a sole trader, calc tax & class 4 nic’s costs and compare with having an employee Talia..
Also a question on losses, carrying back £121000 loss ..
What did anyone put for the 4 mark question on how carrying back wasn’t tax efficient?
I put the ventilation system into special rate pool as a last minute decision, thought I was damned if I did and damned if I didn’t tbh
I also wrote balancing charge for the asset for the motor car from FYA and offset all additions against AIA, though not sure if its right
Well for the Corporation tax 16 month question the period ending was 28 Feb 2017 which falls under FY2016 so 20% tax liability instead of current 19%. The 4 months were in FY2017 so tax liability under 19%
The loss carry back of 121,000 was that if it was set off against 15/16 than there be loss of personal allowance. If it was set off against 16/17 than loss would waste not only the perosnal allowance but also the cgt allowance. Where if the loss was carried to 17/18 against 250,000 trading profit than this will eliminate tax paid at the addition rate and also lower the tax paid at the higher rate thereby more tax savings.
I got the same test, also the same answer (£5,835).
About the capital allowances part in the last question, warehouse and the integral parts of the warehouse are not allowed. (buildings, bridges and integral parts of these components).
Btw, it was the same pattern, the first MSQ – CGT, second – IHT and the third – VAT.
As an international student and English as a second language, it was very easy.Thank you Open Tuition!
Small gift exemption question was confusing there din’t seem to be a right answer.
Was this the one where there was £80 and £195, £225 and a £490 or something like that ?? I put £225 as the same person received the 2 lower amounts which took them over the £250 mark? And obv the £490 was over too
So glad you posted this about the loss relief I put all those things also..
And the split of corp tax rates though I computed it wrong like a huge idiot! Can’t believe what I did just hope not too many marks lost on it.
The question was what amount is exempt under small gift relief, in that case £190 was exempt and £490 to various friends as this not to a single person. This is why it was confusing.
I just couldn’t also figure out the land and house quesition where 1 acre is sold it just threw me off as I rushing.
There were seeded questions amongst Section A and B but I don’t know which they will mark and which not.
All the Inheritence was easy, and also the VAT was ok.
On mine there were 4 x sect b questions so I’m guesssing 1 of those was the seeded on mine.. 2 were on vat so prob one of those
I can never remember the sect a questions.. though the first was a rollover relief question.. bought 2 buildings one at £210k and one at £450 I think then sold one for £490?? Completely confused me !!
Also had one on group related companies – a drag and drop question
I think the land and bungalow costs were added together as the bungalow was then sold with the land then minus solicitors fees at the end ?
Shoot didn’t read it properly them. I just saw 490 and thought this is over the small gift allowance and selected 225 🙁
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