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Hello
Does anyone know were I may find the correct solutions for the f6 paper? The answers are still fresh in my head and I would like to compare answers.
For question 2 I got a value close to £500,000 for the augmented value, did anyone get a similar value?
Can anybody tell me the number of associated companies that were included?
Thank you for replying.
Does anyone remember what value they got for the tax liability?
I found this paper very tricky.
Made a lot of silly mistakes under time pressure. Q2 I did in the last fifteen minutes and calculated the adjusted profit and added expenses which shud have been deducted. Corporation tax liability I believe was in the marginal rate so I taxed upto lower limit of 300000 at 20% and the excess at 25%. I calculated the capital allowance for only the heating and water supply, as they were integral and then allocated AIA of the value I believe £8200 so used that to deduct from the PRofits.
Inhertiance tax, I just looked at one of the technical articles and it was almost the same question about shares. I calculated that the value of shares gifted as 52000, [(6500/8000)*64000]. I should have read the note carefully about the prices for the %s of holdings. Then I made a bigger mistake on allocating the nil rate band to these shares first and then to the trust, so then I charged the total death estate less husband’s 150,000 at 40% since there was no nil rate band to be used.
Shares gifted value calcuated using the quarter up rule, can’t remember which question but I think I allocated the annual exemption (£10600) to it and (£3000).
I think part 3c about partnership i lost easy marks by forgetting to calculate the tax liabilty and just worked out the profits for each. I found the holdover relief for part 3a I calcuated it like part disposal using the gain and multiplying it by the cost/total cost. So that I lost out. I got the entrepreneur’s relief part for the dad alright so there would have been CGT rat of 10% instead of 28%.I found question 1 VAT part OK, just hope that the reasons I wrote down for compliance investigation were correct and also the dates for VAT registration.
So on the whole I have a feeling that I will be attempting this paper again in june. So gotta revise now for F4. Good luck to everyone, and just hope for the best.
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me too. There was in Franked investment income was there?
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I did not see any dividnds for qestion two – was there any?
I got around 129,605 tax liability, but I messed up with double taxation a bit
I managed to get a figure close to £82,000 for the tax liability. May I ask what limits you used?
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I cant remember how much I got but I defn had it was a marginal company. There was no FII tho as far as I could see?? and had the DTR as 6000 something which I am sure was wrong so I deducted the overseas Tax as it was lower. I think I did get a figure of near 82000 also for the tax liabity but can remember exact figure. I used 750K upper limit, as only one associated company.
I definitely divided Upper and Lower limits by 2, one associated company, calculated marginal relief. Augmented profits were the same as total taxable profits.
I thought exactly the same Laura. The question said that he would be a higher tax payer in both years and due to other investments the annual allowance couldn’t be used in either year so I just can’t think of the answer! Only 1 mark and it is still bugging me! What did other people put for why it would be beneficial to sell the shares the next year,I think it was Q3?
Very unusual style of questions; different to what was done before. They seem easy on the face of it, but in fact, it isn’t!
More focused on CGT’s, with barely any Income Tax, Benefits, or QCD’s.So, sure fail for me.. Also did have a complete brain melt-down as I had sat F5 the day before and had been working the same day (Yes, work refused to give me the full day off!). Bah-humbug.
Hope everyone else was more prepared for this, and you all pass!
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Please tell me how you solve the quastion about gift of 6500 shares(quastion 5, point 3), out of 8000 shareholding? How much costs gift to daughter?
The shares gift was diminution in value principle which is done by calculating the value of the shares using the percentage holding before and after the gift, then finding the fall in value I.e costs of gift.
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Thanks a lot Toyosi, that was primitiv part, but I have lost a lot of marks…
Good luck you…I put it in as an extension to the original is P&M – if it was a stand alone building not used to contain P&M then no – but the good thing is one of us is right lol 🙂 good luck
two associate companies including the parent yes ? i had 750000 and 150000 for U and l levels
I am pretty sure I used MV for shares as the gift was done at arms lenght the rule stated Market value but i could be wrong – I used the quarter up rule for one of the shares question but cant remember which one head is a mush 🙂
Law is quite easy i had 35 minutes spare – learn your associated cases and your latin words they gain marks – put yourself into the judges position think logically and remember lifting the viel of incorporation it is always included somewhere as a reply – I enjoyed the law one. F6 I done it but not too sure how i done maybe border line :/
For constuctive dismissal quote kevin keagan case thats a mark 🙂 The Smoke balls case can cover many answers as it relates to a lot of case rules – good luck but dont panic you have plenty of time to answer and can go back and forth between questions.
I couldnt remember is the shares were exempt but i put them as a pet for tax if he died within 7 years too – the two pets got left alone till he died so the only life time tax that was payable was on the trust i think it was 17050 or something it was at 25% as the doner paid it and the cfwd balance was the balance before NRB plus the tax – if it had been the donee then it would have been net amount carried forward and the tax of 20% – i think i messed up on the final amount to the kids i deducted the LTT from the value of the estate and then calculated final death tax at 40% but my display was a bit scruffy as i rushed it so made plenty of associated notes so that he knows what i was doing lol – good luck 🙂
the only benefits was the 3000 from the previous year and current year their was no more deductions apart from NRB which was used up on LTT on death. I could be wrong but the two small gifts were exempt as under 350 only the 400 was assessable. the transfer of legacy tot he wife was exempt. Cant remember anything else apart from doner LTT of 25% not 20% as it is for donee and cwd is before NRB plus tax when Doner pays tax.
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