*** F6 December 2012 Exam *** Instant Poll and comments***

the removal expense did need to be added – i added the excess amount over the £8k.

ixbrl is the format for companies to submit returns/accounts electronically to hmrc

For employment income it was 15k x 8 months not annually……question 4 was so weird 🙂 I’ve worked so many questions and never came across anything like that…..I didn’t even know where to start!

Hi guys,
do anyone remember questions and mark allocations:
for example (q1: a) income tax liability 20 mark etc)
if yes could you pls write here?
thanks in advance

@bethcarroll said:
did the company not pay it then? i cant remember what it said exactly but thats how i read it

I took the excess over 8000 as well.

Well I screwed up took salary at 15100 a mth as it said but didn’t notice the 8 mth date if it was 8 mth and done a year – anyhow income >100k so reduced pa to zero as 50% reduction of the 100k limit was in excess of the pa- the co tax add back 8000 max is allowable as moveable benefit ( taxable benefit) the balance disallowed – pension 50k per annul allowed c/fwd unused gave 150k allowable for year and life limit 1.8 mill – hit deducted ae and nrb taxed at 25% as was diner not donee and if he died an extra allowance for taper relief was allowed but taxable at 40% on balance which ended less payable with 5yr taper – ran out of time on q3 so wrote crap done tax and nic calls for employee and employer but rushed – cant remember what else but found it all too much for 3 hrs and wish I could use pencil what a mess with scoring out lol – don’t think I passed but tried my best 🙂

Also added dividend at gross to stand rate band and hrb and added tax 100/90 to gross up div and 100/80 to gross up bank interest – deducted bfwd relief – property income as was as it said allowable deductions which I wrote I presumed included wear and tear – car benefit co2 rate – 125 /5 added to petrol instead of diesel what a twat lol just remembered that now but done calc right no fuel allowance – canteen allowable no benefit – moving max benefit 8k only as it said included legal for buying which is not taxable benefit so wrote presumption again probably wrong – isa calc easy but only 2 points woohoo I got 2 lol – co calc I started at trading profit and added on not allowed put zero for allowables – dividends adjusted in tax band by gross but think I should have missed out subsidiary dividends but too late now – deducted page tax in div tax in int poa and left balancing payment due immediately with reduced poa for July and jan as business ceased and prop income too low to require poa due to hr relief through dividends and gift aids. Think that’s it but can’t remember head a mess and now got f7 tomorrow so got to go revise as its not good 🙁 – hope u all get passes hope I scrape through but can’t find my 50 marks 🙁

Trading losses bfwd 41 thousand and something gets deducted 2nd row from trading profits 🙂 but again minimal point 🙂

re Q3 CGT: Think the insurance proceeds was a ZERO gain – as the gain on it is rolled-over into the base cost of the new replacement asset. And the land one was a £9k gain I think.

Re Q4 c IHT: £122,000 CLT – so £24,400 when 20% paid by donee trust and 25% £30,500 – when paid by donor.

What did everyone else get?

Oooo I done roll over for the gain on the insurance woohoo maybe another point there 🙂

for questions 1 i used £15k salary per month for 8 months
but did anyone else use salary from her previous job as well, as one of the months fell within April? can’t remember how much it was, but just divided the figure and used 1 amount of it as salary,
think my answer to question 1 was something like £11,000 tax payable after taking off tax at source

question 2 probably should have been easy, but it just threw me – i have never seen a question where you are given everything like that and then told to basically reverse off the bits that weren’t part of the income (main example was that capital allowances should have been deducted from income, not added in like the question had done). i got an answer but no doubt it was wrong.

question 3 – had a stab at it, hated it

question 4 – seriously? wtf was that about? one of the questions said “discuss if it would be beneficial or not if the lady takes all the money as renumeration or as dividends”
i was running out of time so for each option i just said “yes, it would be beneficial” – even if i get 1 mark its more than if i hadn’t guessed

question 5 – was mostly straight forward, the amount of pension remaining from previous 3 years was able to take forward, even though she didn’t pay into a pension last year she was still in the scheme, so that £50k was allowed.

was it just me who thought the question asking about ISA’s was stupidly easy? ok, it was only worth 2 marks, but it said “ben has invested £4000 in a cash isa, how much can he invest in a stocks and shares isa?”

the amounts were given to you in the formula sheets – simply take the yearly limit, less off the £4k he has paid as a cash isa and the remaining is what he can have as a stocks and share isa?

@cjw1 said:
re Q3 CGT: Think the insurance proceeds was a ZERO gain – as the gain on it is rolled-over into the base cost of the new replacement asset. And the land one was a £9k gain I think.

Re Q4 c IHT: £122,000 CLT – so £24,400 when 20% paid by donee trust and 25% £30,500 – when paid by donor.

What did everyone else get?

Hi
Insurance proceeds was NOT a zero gain: as NOT ALL insurance proceeds were re-invested into a new asset. So, there was a gain immediately taxable (the difference between the insurance proceeds (cash in) and the amount spent on replacement asset) and the balancing figure can then be rolled over.

Well, at least this is how I calculated.

@charlyze2 said:
I didn’t allow any relief on the investment property as only properties for trade are eligible for this. So i took the insurance proceeds less cost as the chargeable gain.

Also for Q4. i stated that taking salary would result in a higher tax and NIC liability and taking dividends a lower liability.

I don’t understand why you are referring to investment property – this is not a question on roll-over relief for eligible business assets.
This is a question which tests the partial disposal rules – whereas the insurance proceeds are deemed to be “sale proceeds”, and then only the portion of insurance money which is re-invested can be rolled over, whereas any cash not invested is immediately chargeable. Well – this is just my opinion