*** F6 June 2011 Exam was … Post your comments here and vote in Instant Poll ***

I found it difficult as well. There were some easy aspects but some real horrible things you had to consider. I did past exam papers in 2 hours but with this one I only had 5 mins to spare at the end. Made a bit of a mess with the quarterly VAT dates which I know are now wrong ; ) but apart from that everything else was OK

U Cannot pass this F6 paper without knowing Tax administration!!!!……more than just losing nos for tax admin……information presented in paper just confused tht u tend loose much more marks….thn time pressure..panic….loosing grip of known topics….finally reappear….

essex2herts… don’t worry I’m sure you don’t get penalised twice. I would be really surprised if you did.

I konw it was too late but can anyone remember how to do the Q1? Did you deduct the impaire receipt from revenue or not ?

essex2herts….you wont be penalised twice for a mistake!

paper was very time pressured, question 3 was difficult

Bits I can remember:

Question 1

I disallowed 15% of the lease costs of the car as the CO2 was greater than 160g/km. I also disallowed her parking fines as they were payments contrary to public etc (although mentioned that they are normally allowable when your employee incurs them, rather than yourself). I disallowed her apartment costs, the accountancy fees for inheritance tax planning, the gifts to customers (greater than £50 per donee per year), the champagne, and the political donations. I didn’t do anything with the impairment loss recovered, as I figures since she has written it off before, and now has it, it should be taxable.

I only included one of her bonuses as the other became eligible in a previous tax year. She had no personal allowance as her income was way over £112,950.

I worked out the new guy’s NIC at 11%, and the employer’s contributions at 12.8% after the lower limit when he was employed. As a partner I deducted from the profits the two months from before he joined, worked out the 20%, then worked out his class 4 contributions and class 2 contributions.

I can’t remember much more of the question.

The paper was fair to me, I attempted and finished all question althought there were about two issues i wasnt sure of. Overally the paper was good and expect a fair mark

Question 3

For the entrepreneur’s bit, I think I said Bon didn’t qualify as he hadn’t owned a share for over a year before the takeover, Cherry wasn’t an employee or director so wasn’t even an entrepreneur, and D(?) had less than 5% of the share holding.

I didn’t get through all of the calculations for the second part and can’t remember the numbers that I did get.

Question 5

First transfer was a PET, which I reduced by £2,500 marriage exemption and £6,000 for annual exemption for current year and year brought forward.

Second transfer was a CLT but had the full nil rate band of £325,000 to go against it, then I worked out the tax at 25% as he was paying it not the trustees.

Then the death tax I went back to the PET which was now chargeable as it was within 7 years of death. Used the nil rate band of £325,000 against it so there was still no charge. Then carried the balance forward against the CLT again and taxed the excess (although thinking about it I didn’t use the gross figure, damn!) at 40%. No taper relief as under 3 years, minus the tax already paid.

His death estate, added it all up, took off his funeral costs, transferred the £300,000 to his wife as exempt, then worked out the tax on the balance left with no nil rate as it has been used on the PET/CLT.

Really upset that I studied so much for this paper, on the whole i didnt think it was a hard paper as there wasnt much about groups, overseas and the trading dates which i really struggled with but i have still made a balls of it!

My profit came to well over £1500,000 yet i still claimed marginal relief for question 2. im so gutted also question 3 threw me and so did question 4. I made stupid mistakes in question one with the finance leases etc.

Definate resit for me i think 🙁 Genuinely gutted and ive got to do f7 next week which im dreading 🙁

Question 3 was tricky for me as well. Also got confussed with some capital allowances…Hopefully it will be a pass rate as I atempted 5 questions.

@curiousmeerkat said:
Question 5

First transfer was a PET, which I reduced by £2,500 marriage exemption and £6,000 for annual exemption for current year and year brought forward.

Second transfer was a CLT but had the full nil rate band of £325,000 to go against it, then I worked out the tax at 25% as he was paying it not the trustees.

Then the death tax I went back to the PET which was now chargeable as it was within 7 years of death. Used the nil rate band of £325,000 against it so there was still no charge. Then carried the balance forward against the CLT again and taxed the excess (although thinking about it I didn’t use the gross figure, damn!) at 40%. No taper relief as under 3 years, minus the tax already paid.

His death estate, added it all up, took off his funeral costs, transferred the £300,000 to his wife as exempt, then worked out the tax on the balance left with no nil rate as it has been used on the PET/CLT.

I only used the nil rate band once, against the CLT in lifetime ??
I couldnt remember how to calc the lease in proberty income, was it £68,000 minus the equation ?