TX*** F6 December 2011 Exam was: Post your comments and vote in Instant Poll ***

also last part of q5 on IHT. if anyone remember that q says

1-NRB is same for 2015 i.e 325000 (the year he died)
2- dont use AE (6000)?

It says this in my notes so I think the personal allowance should have been adjusted.

Levels of Personal Allowance
The amount of your Personal Allowance depends on:
a.) your age
b.) your total income in the tax year
Total income means everything you receive from all taxable sources. That means you need to include things like pensions and interest on your savings in a building society before the tax has been taken off.

@champion said:
After adjusting his personal allowance and deducting it his pension was still above the £2440 so we couldn't use the 10% rate.

What you do is that only his first £2440 is taxed at 10% - the balance at 20%.

@ joe & champion
Quote from BPP passcards
"If non-savings income does not exceed the starting rate limit, then the savings income is taxed at the starting rate (10%) up to the starting rate limit: £2440 for 2010/11"
Which i take as...... take PA off pension, then whats left starts to eat into the 2440. If you run out of pension before you get to 2440 then tax savings at 10% (for whats left of the 2440 limit) if you go over 2440 then savibgs is taxed at 20%

@blackcode
I couldnt understand why we had to ignore Annual Allowances on IHT question and frantically had to adjust my answer at the end as I had included them.
Any suggestions or are ACCA just playing with our minds??

@marky123 said:
@blackcode
I couldnt understand why we had to ignore Annual Allowances on IHT question and frantically had to adjust my answer at the end as I had included them.
Any suggestions or are ACCA just playing with our minds??

So it was blessing in disguise for me..feeling the pressure of running out of time (IHT q was my last one) .I forgot to deduct annual allowance of 6000 and also used 325000 NRB on his death in 2015.

I don't think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn't even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?

@danielglover said:
I don't think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn't even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?

The paper had a lot of subdivisions covering most topics to remember all at one go. So there was time pressure. Clearly it seemed quite easy for you. It wasn't difficult but quite a lot to work out.

It was not too difficult but forget a few key points like the 80k cap on a cars listed price & u don't also pro-rate lease premium received during the year. the GCT was a bit tricky (got 200 exempt days out of 210 in the PPR relief & with annual exemptions there was no CGT).

Overall it was a great exam, had to take a 20 minute toiLet break and still attempted all questions with 10 minutes to spare!

@danielglover said:
I don't think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn't even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?

If it was as easy as that Daniel then Ill say congratulations now in advance before you receive your 100% pass mark in February! lol

I messed up with the retired William. I wrongly exempted his pension income when calculating his income. I was unsure whether it was exempt or not, so obviously I made the wrong decision.... That could be very costly to me, but overall I am rather optimistic though.
The exam was on the fair side, but there was just too much information in the longest question!
Good luck to everyone.

nothing to say :( 5 emptied my brain a day before and when i saw the f6 paper my mind just went blank :(

why you are not pro-rate the lease pro-rate ?

On Q2 the tax adjusted trading profit, I didn't add back the Counselling services provided to employees who were made redundant as I thought this was allowable, Is this correct?
Also I don't understand why people are talking about the 10% rate for savings. He only ask for the income tax liabilities not the income tax payable... Unless I made a horrible mistake and its the same thing and lost a few easy marks....

@mikey1987 said:
On Q2 the tax adjusted trading profit, I didn't add back the Counselling services provided to employees who were made redundant as I thought this was allowable, Is this correct?
Also I don't understand why people are talking about the 10% rate for savings. He only ask for the income tax liabilities not the income tax payable... Unless I made a horrible mistake and its the same thing and lost a few easy marks....

Counselling services made to employees is allowed (i think)... and you had to calculate the %ges for Q1 :)

Hope this helps

oh man, well thats properly 3-5 easy marks down the drain. :(

Thanks for the reply! :)

@mikey1987 said:
oh man, well thats properly 3-5 easy marks down the drain. :(

Thanks for the reply! :)

I am sure that Counselling services to redundant employees are allowable.
Regarding income tax - yes you do have to calculate the bands/% - otherwise you will not know what the income tax liability is.I also deducted the tax credits on savings??
Regarding the lease I think you need to think to take the whole income (and not prorate).
Good luck to all.

Yes, it is allowable. Basically any expenses for employee are allowable.
Hope for a pass.

I took the counselling services as allowable as well. but as I was told there was no need to calculate income tax payable (deduct savings tax credit from income tax liability to arrive to income tax payable). also did not know whether to pro-rate the lease premium or not. do not remember what I did in the end. hope it was right. I remember I saw in some of the questions, maybe prior year exam papers that premium was prorated, but in the book it wasn't. so should we pro-rate or not?

aroob99 said 1 day, 1 hour ago:
nothing to say 5 emptied my brain a day before and when i saw the f6 paper my mind just went blank

better not to take two exams in a row, but allow a couple days for revision or even learning as in my case with F9 :)

Hi,
Guys, we will all pass and look forward to the future. Today, I will rather not comment much about the paper and wait till when the results come out in February.Thanks to OpenTuition. Long live OpenTuition, long live all the Lecturers.
xxx

hi guys how are you all i hope you are all done wIth F6,,
WHAT DO YOU GUYS THINK ,,
I DID DO MY BEST IN FIRST 3 QUESTIONS BUT I WAS NOT GOOD AT QUESTION 4, AND 5 WHAT DO YOU THINK OF MY RESULT WLL I PASS ,,,
JUST BE REASONABLE ,, PLEASEEE

AFTER ALL THIS PAPER WAS DISASTER ,,

Q1 took reasonable time of mine, Q2 was confusing, its got a lot of basis periods, Q3 was fantastic, but not sure of the PPR, Q4 Property income, did not answer according to the instructions, coz if i do, my work would be rough, i did the properties income in separation. Q5 was all gambling, except for the IHT( In which i did not take out the NRB of 325,000 coz was already used in the life time tax). over all was average, hope 2 pass, but made some silly mistakes....

The problem for me was that lack of time. I think I may have spent too long on question 1 and question 2, which meant the rest of the paper was very rushed. I’m pretty sure I’ve lost lots of marks along the way as I didn’t have time to double check everything in case I had missed something.

I really rushed at the end and even included a note for the examiner "Sorry, im running out of time" due to my messy paper !

is it true that you get rent relief OR PPR - not both ???

If only we had more time!

:(

I pray to god that i have passed this paper, as i dont know what i will do if i fail! I might pull my hair out of i have to go through all that again - with new rules !

@asifrox said:
Counselling services made to employees is allowed (i think)... and you had to calculate the %ges for Q1 :)

Hope this helps

what %s ??

and i thought, counselling - its not the purpose of the business - so it wont be allowed? i added it back in. was that wrong? :(

@s4k1b said:
what %s ??

and i thought, counselling - its not the purpose of the business - so it wont be allowed? i added it back in. was that wrong? :(

I remember doing a past question that said counselling for redundent workers is not an allowable expense.

@danielglover said:
I remember doing a past question that said counselling for redundent workers is not an allowable expense.

Counselling for reduntant employees are allowable expenses. See Kaplan Revision Kit Questions - it explains it all. I am afraid you are wrong.

I forgot to state the questions that were attempted on the booklet. Will my paper still be marked?

i made the same mistake only i forgot to mark the last question i attempted on the front of the booklet. will this effect the marking of my question? :(

Looks like the examiner suffered huge losses before setting out the paper

the whole paper was setted on losses

Corporation Tax (Losses)

Property Business Profit (Losses)

Trading Losses

Capital Losses instead of Capital allowances

ONLY LOSSES LOSSES AND LOSSES

very awkward paper it was