TX*** F6 June 2013 Exam was... Post your comments ***

<cite>@mohamedd786 said:</cite> Here are the answers I put down 1) % for the car was 32%. Apportioned the car and fuel benefit for the part of the year where the car/petrol was provided. AMAP wouldn't have been claimable to travel from home to work, but allowed for the other 2. Minus what was given to him, to the AMAP to get a benefit. Loan benefit- loan outstanding at start of year plus loan outstanding at the end of year, divided by 2, times ORI. Minus the actual interest that he paid, giving the loan benefit. Occupational pension deducted from Gross Salary. Personal pension he would be able to invest in- 10,000 for the 3 years b/f and 10,000 for the current year. Thus, Basic Rate Band extended 40,000 times 100/80. No Personal Allowance available as ANI was over 116,000 Holiday letting treated as property income. NIC 1 A on loan, car fuel and AMAP benefit. 10% starting rate for Rhoda, and reduction in her Personal Age Allowance as her Net Income is more than 25400. 2) Balancing charge on the special pool, One of the car was eligible for FYA. 3 associates (4 including the parent) Group Loss relief of 64000 was the only one they could claim. Dividends from the company that they had a 40% stake in, included as FII at * (100/90) Tax was in the marginal rate VAT output of 300/6= 500 Impaired debt (wasn't too sure on this), was recoverable as it was exactly 6 months since payment was due? Had to subtract UK customer entertainment from input VAT figure. No adjustment for overseas customer entertainment, repairs, etc? 3 a) 6625 shares b) No Rollover relief on warehouse 1 as sale proceeds greatly higher than re-investment Some rollover relief on warehouse 2, and some gain (proceeds that werent reinvested) c) Enterpreneur relief for one of the persons, so 10% for him, and 28% for the other. 2000 shares valued at 2000 pounds for the first person, and cost of shares for the second person was 2000/3000*acquisition cost Tax saving was around 3000-4000ish pounds. 4) a) first yr assesment for 11 months till 31st march. this was also overlap profits, other years CYB Final 14 months period, WDA given for 18%*14/12. Overlap Profits of 2 months deducted to bring the taxable months to 12. b) 2 CAPs. The first for 12 months, than for 2 months. WDA and AIA for the 2 months proportionally reduced. 5) Reduce gift of house by Annual exemption of 2 years (6000 pounds) plus marriage exemption of 5000 pounds. This gives the Gross chargeable transfer. Death tax on PET would be GCT less NRB of 325,000. IHT @ 40% and taper relief @ 60 %. Half of the death estate was exempt, the other half chargeable at 40%. ii) Tax on house payable by son c) Income tax on rents (less repairs, less insurance) CGT on proceeds less legal fees, the value of house when inherited and capital expenditure. Anyone else got something similar? Any feedback would be appreciates .

<cite>@jenny3549 said:</cite> More or less exactly the same. Know I made some silly mistakes that I'm really kicking myself about as I realised as soon as I left! Q1 - didn't include the AMAP in the calculation of Class 1 Primary (even though told myself to when reading question!) - completely forgot to restrict the wife's Age Allowance for income over 25400 - so had a bit with starting rate of 10% Q2 - very annoyed with self for some basic errors due to panicking (was my first exam). Managed to convince myself couldn't have a balancing charge on the special rate pool - got confused with not having the balancing allowance - bugger! - also got one of the adjustments wrong as had spent previous day revising VAT so had that in my head so allowed entertaining o/seas customers - poop! - associated companies fine but then completely forgot about the 75% rule for group relief so got that wrong. Q3 - think that was all fine. Q4 - left til last as didn't fancy it so did in a rush at the end but think got it right (deducted 2/11 overlap profits in year of change) although couldn't remember any points to make for the wordy bit apart from not having made a change in the previous 5 years. Q5 - think all fine GCT was house less 6000 less 5000 marriage so ended using NRB on death so Phil had IHT to pay less taper relief. IHT on 440k at 40%. CGT used probate value for house etc. Overall should think I passed - just really annoyed at self for the silly errors - would much rather get things wrong because I didn't know or couldn't remember than because didn't cope with exam hall pressure! Am forgetting about it now as F7 tomorrow and that's just about trying to scrape a pass!

<cite>@seanog91 said:</cite> Hey, How did people find F6 Irish variant. ... Anyone else think the same as me?

<cite>@geteveryone said:</cite> Yeah, I also got 6625 shares. 2650 is just 10,600/4, so it doesn't take into account the actual gain. ie. Proceeds (Cost) _____ Gain (AE) _____ Chargeable. I don't know if 6625 is right, but I used algebra to calculate the answer. 4X - 2.4X - 10600 = 0 So far, I know I mucked up the Pension Scheme portion of question 1 and I also didn't realise Rhonda's BSI was gross, so I wouldn't be surprised if this was wrong - pays to read the question attentively.

<cite>@charlotteo said:</cite> I would say yes, deduct the occupational pension contribution from his salary in the employment income working (only his contribution, not his employer's) as this is a tax free benefit. And because his personal pension contribution was £40k, yes, you'd add a grossed up amount of £50k when extending the tax bands.

<cite>@faranjamal said:</cite> Didn't the question ask income tax liability and not payable/repayable?</blockquote

<cite>@duffielda52 said:</cite> For the share question did any one get 2650 shares ??

Yes even I got 2650 shares . 2650 * sp 4 is 10600. So no gain/loss

<cite>@oldc02 said:</cite> Yes I put it as restricted too as all of the sale proceeds were not re-invested. I think I got a chargeable gain of £12,000 on warehouse two.

<cite>@atab said:</cite> But it didn't say how many were sold....it just asked us to see how many could be sold without incurring a gain.....therefore I took the full amount plus the annual exemption and divided it by the selling price to see how many could be sold without incurring a gain....

<cite>@paking said:</cite> Sean - I agree not a fair test as I focused on a lot of little bits you knew or didn't. The core bits were less points then they should be and fairly easy. These are the bits I thought tough: Annual Accounting Scheme Farmer with Incoming Averaging Corporate Tax from scratch as no net profit figure. Nearly all the withholding rates were needed. UK third level above threshold Medical insurance Legal expense on a failed M&A VAT included RCT (ignored said was an IT credit) VAT on own home work. Yeah the VAT question was very unfair. The Annual Accounting Scheme wasn't even in my text book. I thought it was something to do with filing one tax return for the year and said it was for individuals who can claim the Form13B number. As well got that wrong. The farmer average income was ok I hope. I just took 2012, 11 and 10 income and divided by 3. Please god tell me that for the corporation tax you use the trading profit. I think it was like 800000 or something and then you do your addbacks. The VAt on his own work was just charge himself VAT on the materials but not the labour but I thought the 2/3 rules for the first one was tricky enough as i was not sure if you can apply 13.5% for the whole amount or do you have to itemize? I applied the 13.5% to the whole invoice. The RCT was unfair as there is 4 different rates that can apply for RCT and revenue decide on the rate that must be used. I used 30% but still charged VAT and put the VAT amount in my summary. I agree theory was good. The CGT question for the shares was very tricky as the sale proceeds for CGT not monetary gain was 100,000 I hope ? Please tell me you agree? Theory was easy - residency, ordinary, domicile. Timely question..

<cite>@vipulv said:</cite> Question 2 UK TAX : Capital allowance bf figures (TWDV) then had sales and cost.......did people use all the sales value? ..... and question also said the cost has previously been included (does this mean we ignore cost correct?) ..... One of the sell I put into main pool and other into special. The purchase: One had FYA 100% the other was just main pool? Question 2: I think there was also only two Zeros. Rest were all Disallowed including pens/customer/overseas entertain. Please confirm someone :) I can sleep better lol.

<cite>@faranjamal said:</cite> On the cover page of the answer booklet, you have to mark the questions you attempted; I forgot to do that! Will that make any difference?

<cite>@kased58 said:</cite> Totally messed up in the occupational pension scheme.Didnt realise that employer's contribution also utilises the maximum allowance!!!!!!!But thank God ACCA marks per entry and would not actually penalize the whole workings... In relation to the share's qsn i presume it was a gift btn connected persons,so i took the open market value i.e 6.4x-2.4x =10600 and got 2650 shares.....hop it pays.

<cite>@duffielda52 said:</cite> But I thought if the market value was higher than the sale we took the market value & not the actual sales proceeds? The market value was £6.40 She sold to daughter 4.00 -irrelevant Cost 2.4 Actual gain £4 Annual exemption £10600/ £4 gain = 2650

<cite>@joskof01 said:</cite> That is true. Hence the maximum contribution to the personal pension scheme is 40K so as to avoid any annual charge. Workings: Max contribution for 2012/13 50K Utilised in 2012/13 (28K+12K) 40K Untilised in 2012/13 50K-40K= 10K This same contribution has been done for the past 5 years. Any untilised contribution from the previous 3 years can be brought forward to 2012/13. Hence, Utilised in 2009/10 10K Utilised in 2010/11 10K Utilised in 2011/12 10K Plus the utilised for 2012/13 10K This sum up to 40K (being the maximum contribution to the personal contribution. NB. You'll only extend the tax band rate by this 40K.