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Can someone tell me how many marks did question 5 carry and how many parts did question 4 have?
The paper was indeed different from previous exams. Yet, I found it manageable both in terms of time and difficulty. It was surprising to me that pensions and (if I recall correctly) PA were not tested and a lot of attention was put on chargeable gains.
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AIA was on integral and non Integral but I just realised that on the balance transfer of the AIA I put it all in the main pool at 18% not in the 8% – can anyone remember how much the integral was for – as in how mush should have been transferred to the special rate pool? so annoyed with myself. Wish I could forget it! Question 4 had 3 parts and question 5 was 15 marks – Viipya
It was alot better than it could of been, i made a sloppy mistake on IHT, i included gift to husband as a PET, and then included it when doing the death tax, so annoying especially when I knew it was exempt. Question 3 was definitly tricky, especially part c.
the paper was ok wouldnt say to good wouldnt say to bad but however i felt the examiner made it tricky interms of he included everything from all different sections of the paper.
Question number 1 was simple straight forward but i was really shocked to not see income tax liability appear. Capital allowances were tricky if you didnt know your trading profits rules clearly. someone correct me if i am wrong but i only gave wda @18% on the employees car as richards car cant qualify for wda as there is no business use mentioned inrespect to his car. and the national insurance part of question number one i just put class 1 nic at employers rate on two of the employees salaryy and class 1a on the carbenefit provided to the chief in his business. Vat was simple but the 2 mark ethics part confused me.
Question number 2- was simple straight forward but i was unsure of the loan debentures something like that i multiplied the figure by 2 and deducted it from the Taap of the company.Question number 3-i missed out part a b but part c was pretty simple to me.
Question number 4 no attempt as time ran out for me
Question number 5-i think i done well but i am not sure i need someone to corect me if i am wrong for the pet of the 6500 shares gifted to her daughter i took the value was 80% as 8x8000shares-64k i then took the value of 15% shares as 3×15=4500 and the iht rules state diminution rule u have to access the fall in value which was 59500 and that was the value of pet to be included in computation 2. and i also didnt deduct the specifc legacy fromt he death state whcih she made to her sister.
were my calculations right for question number 1 and 5. someone please reply
I remember Richard’s car was 70% for private use? I spent too much time on q1 and q2, so was struggling to complete the inheritance tax one…????????????
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I remember also that he had 70 percent private use. I also deducted the shares for the IHT as you did. I did deduct the legacy to her sister but calculated the tax on that to her sister and deducted the tax and the sisters legacy as I thought it mean she was to receive 40,000 after tax- but I am not sure that was right.
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I remember also that he had 70 percent private use. I also deducted the shares for the IHT as you did. I did deduct the legacy to her sister and calculated the tax on the 40,000 and deducted this iht tax too to get the amount of the death estate to the children but I am not sure that was right.
@Grace – Yes there was 30% business use
@feroz – About IHT question, I did what you did and I am pretty sure we are both right
@Morag Gilles – SRP balance was NIL (Fully covered by AIA), part of the Main pool total was covered by remaining AIA and WDA of 18% was available on the balance. (me thinks)- Topics: 0
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Oogabooga – what did you get for grants chargeable gain? It’s bugging me I did it wrong? And what does srp balance mean? I forgot to deduct two years of 3000.00 on the shares for the annual expert amount on iht only did one – how annoying!
I also think this paper to be quite tricky. Question 5 was the most difficult one for me. Fingers crossed till February.
SRP is Special Rate Pool where integral assets would have gone if they weren’t covered by AIA.
Q3 a – I only vaguely remember what I did with part a(i) so i don’t wanna say it, I ll know once I see the question paper but the chances are I did it wrong.
In (ii) I said it would have been beneficial if the father had dispose off the shares himself and then give cash proceedings to his because he met all the condition of the Entrpreneurs Relief and would have paid tax at 10%. Can someone confirm ?
Q5- I think there was no AE left for the transfer to the trust.(Could be wrong as there was no time to think)
Gift to niece was like £400 so remaining £2600 was transferred to the next transfer.- Topics: 0
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Thank you – I said that it could be a PET if he did not die within 7years and I am sure that was the wrong answer about the shares. Thank you for your replies
No worries
You think that my answer was wrong about shares ? You know the correct answer ?- Topics: 0
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I think your answer was right about the shares and I think my answer that it could be a Pet if he did not die was the wrong answer. I think I got 0 points for question 3 a!
Oh well ! I suppose we don’t know whose answer is right or wrong but ll find out in 8 weeks.
ThanksWell, I think tif the father had disposed the shares and gave cash to his son, then the gift would have been exempt from CGT because it is cash. Or am I missing something? Isn’t PET in IHT? Was the question about shares gift not in CGT?
Well, I think if the father had disposed the shares and gave cash to his son, then the gift would have been exempt from CGT because it is cash. Or am I missing something? Isn’t PET in IHT? Was the question about shares gift not part of the CGT bit?
I hope I passed this one! I think I burnt out even before I got to the exam – and really hope I wrote enough to pass..hmmm
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That is what I said in my answer if it was cash then it would not be chargable but if the father dies then it would have been chargable if he died within 7years but cash at the moment as gift to his son was not chargable it was a PET. I’m not sure it was the right answer at all but I said not chargable and said when it could possibly be chargable to back up my answer.
@Sanjay, thanks for your comment, I feel somewhat better now. Does anybody think deducting £250 (small gifts relief) from the £400 PET was the right thing to do? My friend told me that was what he did. I don’t know if he was right or wrong. I deducted the annual exempt amount of £3000 from the £400 PET and used the remaining £2600 on the next PET. Again, I don’t know who was right or who wasn’t.
I totally agree with u. the paper was not hard it was just tricky, most of the questions were not straight forward. I just hope I scrape enough marks to pass. questions 1 and 2 was not bad.
@Toyosi It’s only 1/2 I guess so don’t worry about it.However, if you spend more than £250 then, the whole amount is chargeable can’t be reduce it by the £250.
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If its over £250 then its chargeable for the full amount as Abodinho says. Oogabooga, I got your shares answer, it took me about 15 mins but I got it.
The building was integral but is not P&M. So it was just the ventilation and kitchen(?) that was eligible for AIA I believe there fore nothing was transferred to the special rate pool. I did feel the question did invite you to do this which was a bit evil..
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