December 2015 Past Paper

Some observations and tips from looking at the samples they’ve chosen from the December exam (I didn’t sit the September one btw)

1. Relatively straightforward capital gains tax question for an individual explained. Therefore unlikely to see a similarly generous one in March exam. I feel they will be nastier next time as CGT has options for being difficult!

2. Relatively straightforward IHT question explained. We weren’t required to do the full three comps as is often the case and there were easy marks for questions on marriage rules. More likely to see long version in March?

3. Seems to be from September exam? Basically revise as many rules and penalties and deadlines for VAT! Seemingly important are cash and annual accounting schemes rules. Be prepared to ‘learn’ and ‘churn’ in the exam as well as possibly doing the basic VAT computations.

4. Partnerships and basis of assessment always seem popular. Disclaimer though: This Q is the ‘wildcard’ 10 marker from September so it’s hard to predict what might come up…

5. Dec IT computation. Not too difficult but the key marks will ALWAYS be in the quirks of IT. For example looking at the marking guide – it was in computing the ANI, handling treatment of partnerships and payroll giving (NOT Gift Aid). Basics of IT are assumed but regularly tested (lots of half marks everywhere) but the REAL marks are in having a wide range of knowledge as every single sentence in the syllabus is examinable and they could pick any one bit to be worthy of 1, 1 1/2 or 2 marks.

6. Looks like the Sept CT question. Basically DO NOT WALK IN TO THAT EXAM HALL WITHOUT CONFIDENCE IN
– Recognising how long a period you are asked to computate as this has implications throughout your answer
– Having a sound knowledge of Capital Allowances including closing year treatment and time apportionment where relevant.
– Recognising if corporation tax is due in another FY at a different rate
– Being able to handle group, rollover or loss relief scenarios. This may be sticky but if you don’t understand these beforehand you are likely to make a mess, like I did in Dec one.
– Applying marginal relief in your liability computation having worked out size of the company (it will be assumed you know how to do this and should be easy marks)