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

@joevassallo said:
I thought the exam questions were OKish… There was a lot to be done and most questions were subdivided presumably to cover most of the syllabus areas???
Hope for an above 50 pass mark though, but you never know.
Did anyone get £159,000 adjusted trading loss for Q2?? Does anyone remember how many marks it had.
And the one with PPR gain of £6,000??
The paper had a lot of questions on losses.
Disappointed with the IHT question not what I was expecting.
Time was of the essence again.

The loss was around 158000 something, Im not sure it had to exclude VAT from all the figures of disposal in capital allowances calculation? I did for computer only.. and PPR relief was 198000 with letting relief of 40000 i guess

@mairaj08 said:
The loss was around 158000 something, Im not sure it had to exclude VAT from all the figures of disposal in capital allowances calculation? I did for computer only.. and PPR relief was 198000 with letting relief of 40000 i guess

It was not a difficult paper, but posed a few challenges non the less. I am not very optimistic because I did not finish the paper. 🙁 I did my best. Thank you OT and your team for all the resources and help 🙂

How did you guys answer the last part of question 1? I put down that he should have paid for the full cost of the fuel and used the money left over to pay towards the use of the car.

Guys, the paper was full of details. and yeah too much work for just a couple of marks. Q1 Gift Aid and Pension Contributions confused me much. did you include the contribution as net or gross? did you include employer’s contribution as well to extend the rate bands for income tax computation?
Q2 was hard, incorporation and cessation all in 1 question, too many details. forgot to exclude VAT from allowances. did not realize it was VAT inclusive 🙁 balancing allowance and charge all in one and losses losses losses
Q3 was ok I think except for PPR which is also rather time consuming.
Q4 was the easiest I think. hope to score on these questions.
Q5 included 3 completely different questions. started doing the one with group loss relief, but did not finish as run out of time. although corporation tax computation with double tax relief would bring a lot of easy marks. IHT wouldn’t.
Good luck to all of us. InshAllah will pass with 50 🙂

It was ok as compared to some of the past questions I looked at. Thump up. Hope for the best for all who sat this paper today.
xxx

@tick_tock said:
How did you guys answer the last part of question 1? I put down that he should have paid for the full cost of the fuel and used the money left over to pay towards the use of the car.

Oh no, really obvious now you say it! I put it all towards offsetting the car benefit.

paper was ok……i attempted 75% only unfortunately , i could have attempted 85% though . anyway if i PASS then i will give credit to my TEACHER…..and my TEACHER is OPENTUITION.COM 🙂

Was very time pressured. Think i did ok in Q1 but took way too long. Q2 was ok ish, did anyone get £3900 for the capital allowances? I then took them out stating that capital allowances cannot increase a loss(??) Seemed a bit pointless to calculate everything and then not be able to use it? They did that again by including a car from pre april 09 which would have been restricted to £3000 if it were not for the winding up…..
Worked the fuel benefit in q1 at full £18k and suggested he should have paid the full cost of fuel which would have saved £6300 x 50% tax . Also used the full price of the car and then deducted the capital contribution to give £78 (ish). Checked text book and it says restriction to £80k is after capital contributions so hope ive nailed that part.
Q5 i only did part 1 & 3. Think i took all the gain out of the ppr question . Worked out at 172 months occupied which left 38 =£38k . Kinda forgot what the rule was on letting relief so just went with the £38 being the lowest……..
Wish all good luck with results;)

I used the 3,200 of the fuel cost and advised that he could make a gift aid donation of the same amount and it would be a gross donation of 4,000 (3,200 * 100/80)
And showed the tax savings cuz of the rate band extension.

Also, the occupational pension scheme DOES NOT extend rate band. It’s an allowable deduction in the employment income part. Both by the employer and employee i think.
Even though i was pretty well prepared for it, and the exam wasn’t really hard, it was very different

No NIC is payable for state pensioners.
Occupational pension scheme does not extend rate band – just deduct from Salary.
I worked the PPR gain as £6000 exact.
I worked the Adjusted trading losses as £159,000 exact
Capital Allowances – no AIA in cessation and both balancing charge/allowances had to be worked
Taxable gains on Painting and Motor Car were both exempt.
Corporation tax computation on Q5 – I ended up with tax repayment.
List price of motor car restricted to £80000 @ 35% (also restricted) and I deducted the £4800 he paid for the use of car from the benefit.
Car fuel £18,000 @ 35% (not all fuel paid so taxable)
Rent a room $4250 not applicable as normal calculation was lower
Lease premium added with Rent Income
Furnishing Lettings (trading rules) I worked Capital allowance on Furniture/kitchen

Did anyone had similar workings? Good luck to all.

joevassalo
you actually answered most of the questions that were tricky and that the guys asked here. I only got some of them right. forgot the limit – 80,000 for price list. extended the income tax rate band with occupation scheme as most of the guys did on the exam, should have deducted from income at source. forgot where I should put the gift aid, which should exceed the rate band. forgot to exclude VAT for purchases for capital allowances calculation. noticed the disposal of main pool assets, when it was too late, I had like 40 minutes remaining for 3 more questions. the exam was very extremely tricky. all this work with VAT was very time consuming. forgot to include kitchen furniture as a deductible expense.
hope to pass with 50.

@emira said:
blackcode said 8 hours, 39 minutes ago:
paper was quite easy. i attempted 70 marks only n still hoping to pass:).i wasnt good at time management i guess otherwise could have attempted 100 marks. did anyone get 3 gains equal to zero (including PPR relief)? also capital allowance in q.2 was equal to 3600? how do we treat pension income for income tax purpose? we consider it as non saving income or saving? and person getting pension income does he pay any NIC?
I also got gain with PPR relief as zero. I thought the house was occupied all the time. although in the book it said it could only be unoccupied due to work in UK for not more than 4 years to qualify for PPR relief. capital allowance should be like 3,600. pension income was below personal allowance, as he was more than 75, therefore taxable income on it was zero. it is not a saving income. but forgot to calculate tax for first 2,440 of building society interest, which is a saving income, taxed it at 20%. persons above 60-65 (women and men) do not pay NIC on their income (looked it up in the book after exam). I did not calculate NIC on it, said these two types of income were exempt, but did not explain why.

Regarding PPR I got gain £6000 – when working overseas this should be chargeable (not exempt).
Re Pension I do not think you have to explain why – question asked to calculate NIC (if any) – I put Nil – exempt.
His savings interest should be taxed at 10% for his first £2440. You are correct his pensions were within the personal allowance of 78 years old. This is treated as Other Income (not savings).
Good luck.