*** F6 December 2015 Exam was.. Instant Poll and comments ***

hello everyone,

I have some questions with regards to F6 exam, I’ll try to put them one by one:

for IHT question which had following details:

1) a CLT in year 2006 (approx)
2) a CLT in year 2012 (approx)
3) a PET to his daughter (which ended up with some weird costing)
4) and rest of the estate to his wife

death in year 2015

my question is since item (1) pertains to 7 years prior to death, do we still need to calculate NRB for CLT in item 2? I mentioned about it saying IHT Nil, CLT 7 year prior to death nothing need to be done

Did item (2) qualify for pafer relief of 20%?

item (3) for you also ended up with huge IHT?

of course (4) is exempt from IHT.

Thanks for feedback in advance.

The corporation tax was some P6 stuff rather than F6!!!

MCQs were fair. Occupational pension contributions through payroll was sneaky tactic by examiner. I adjusted band rates including that ?

@yentam said:
What did you guys do with the chauffeur? Did you ignore it because it’s allowed wholely and exclusively for business.

chauffeur means driver and cost of driver is a benifit…so i have added it

I got Overlapping profits on the 30 June date but not on 5 April one, IHT was easy since we just had to calculate tax at death, I got taper relief for one of the CLTs I think, CGT was ok, VAT was just details and stuff not bad, Q5 was tricky yet manageable but Q6 was a disaster for me. Overall it’s upto the mcqs now to save me lol

Calc not calf – damn autocorrect!!

1 D
2 B
3 C
4 B
5 C
6 A
7 B
8 A
9 D
10 C
11 B
12 D
13 B
14 C
15 D

@tayyabom said:
I think this should answer for one MCQ (this is taken from here (https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/hs293-chattels-and-capital-gains-tax-2015#part-2-disposals-of-single-chattels)
It was 7200, not 7500. The net proceeds were 6900 + 300 selling costs = 7200. 2000 was correct answer in my opinion.

Example 1

You sell an antique mirror for £7,500 that originally cost you £1,500. There were incidental costs of sale totalling £250. The disposal proceeds exceed £6,000.

Calculate the amount by which the disposal proceeds exceed:
£6,000 (£7,500 minus £6,000) = £1,500
Multiply this by 5?3 (£1,500 × 5?3) = £2,500

That is the maximum chargeable gain.

Then work out the actual gain. Your calculation will be:
Disposal proceeds £7,500
Minus expenses £250
Cost £1,500
£1,750
Actual gain £5,750

Compare this with the maximum chargeable gain and enter the lower figure, which is £2,500.

@yentam said:
2880 saving right?

Yes £2880 is correct (£4800 x 60%)

I have doubts about few MCQs

1) one was about 30% penalty I think?
2) In one question I chose 480 as answer, I don’t remember the question
3) About maximum penalty I chose 1 year 100% or something for one question
4) Corporate tax I chose 625,000 / 4 (current years profit) as 4 installments not last years figures. I felt that it’s corporate responsibility to correct forecast their result therefore it has to be current year’s taxability and not last year’s for corporations. for sole traders I remember vividly it is previous year’s figures which are to considered.

MCQs which I’m sure I did wrong are one for chattle capital gain, correct answer is 2000 5/3 (7200 – 6000) but I chose it wrongly.

I got NIC MCQ wrong, correct answer was 3808 but I chose 5808. Forgot to deduct employer’s allowance of 2000.

your comment on this please?

@yentam said:
1. C
2.D
3. A
4.A
5.C
6. D
7.B
8.A
9.C
10.A
11.C
12.C
13.B
14.D
15.C

1D
2B
3A
4B
5C
6A
7B
8A
9C
10B
11A
12D
13D
14C
15D

2 other people’s answers</blockquote

Thanks!

thanks Yentam, 30% penalty was the right answer. Looked up at UK tax website and for careless behavior while submitting a tax return, maximum penalty can be upto 30%. This applies to CGT, Tax, VAT everything. so got it right. finally 2 marks confirmed 🙂

Corporate 4 installments as per current year profit seems right as well (as you confirmed)

thanks sarah. figure was 34,200 if i’m not mistaken.