*** F6 June 2013 Exam was… Post your comments ***

<cite> @mahoysam said:</cite>
I am hundred percent sure that NRBs are used on PETs!

Yes I used the nil rate band for the death tax calculation of £325,000 but didn’t use it in the lifetime question i.e the nil rate band given in the question for the 2008/09 tax year.

<cite> @oldc02 said:</cite>
Confused – no I didn’t use it as it was a PET. I did at first and then realised it was wrong.

erm, i used the NIL rate of £300,000 on the PET, which meant there was only £25,000 to use against the estate later (£325,000 less the £300,000 already used).

Is that completely wrong? 🙁

<cite> @oldc02 said:</cite>
Yes I used the nil rate band for the death tax calculation of £325,000 but didn’t use it in the lifetime question i.e the nil rate band given in the question for the 2008/09 tax year.

Dear, I cannot remember the numbers but NRBs are utilised in a chronological order, therefore, we should use it first on the PETs then if there is anything remaining we use it on the estate, in the question, there was nothing remaining for the estate…

Anyways, there is no use of argument now, best of luck, I hope we all pass 🙂

Yup the NRB was supposed to 325000 as it was when the guy died. You’d only use the 300000 when he was alive and when he makes donations into a trust (comp 1)

<cite> @charlotteo said:</cite>
I think: when you calculate a gain involving subject matter that was sold at a below market value – as was the case here – you take market value as the deemed proceeds. So for 1 share:

Deemed proceeds £4
Cost <u>(£2.40)</u>
<b>Gain to tax now £1.60</B>

£10,600 / £1.60 = 6625 shares

I agree with your workings but wasn’t the market value £6.40 the cost £2.40 (she sold to her daughter for £4 which is irrelevant. ) Leaving a gain of £4 per share. 10600/4 = 2560??

<cite>@danf1981 said:</cite>
It wasn’t a bad paper at all – except as always question 4 with change in accounting period. I thought the only mileage that was allowable was between his place of work and clients visits and everything else was disallowed? I got 708 I think plus I think the amount you could extend his BRB were the gross amounts of personal pension contributions of 50000 which the question specifically said he maxed out on and did so for his previous years so I assumed no brought forward figures and extended the bands by 50K.

Perhaps it was yet another example of the examiner trying to trip us up as usual? Did everyone include the overseas company in their associations also as I feel I was being a bit thick in places and forgot to include it in somewhere.

What was Question 4b about? All you had to do was split the accounting periods? And Part 2 on 5? Had to do chargeable gains and income tax for 7 marks?? Talk about time pressure???

there was only one company i didn’t include as an associate as it was under a 50% shareholding?

therefore the upper limit and lower limit for marginal gains were reduced to £1,500,000/4 and £300,000/4.

Sorry guys, I am NOT reading anymore comments… I think I have done well, but the comments here confuse me lol

Plus… whoever has F4 exam coming up, better stop talking about the past and focus on the coming exams! Best of luck to everyone 🙂

The nil rate band given in the question was irrelevant as it was a PET (Potentially EXEMPT Transfer)
It is only relevanf for CLTs because they are chargeable when gifted.

In the VAT Private Fuel, the full 300 was deductible, right? (as it was already scaled for the quarter)

I got this

MV at date of disposal 10000 x 6.4 64000
Cost to whoever 10000 x 2.4 24000
gAins 40000
less AE 10600
Chargeable 24400

24400 divided by 4 = 6100

<cite> @duffielda52 said:</cite>
I agree with your workings but wasn’t the market value £6.40 the cost £2.40 (she sold to her daughter for £4 which is irrelevant. ) Leaving a gain of £4 per share. 10600/4 = 2560??

That makes sense – I thought there was gift relief but didn’t remember that the market value was £6.40.

Therefore:

Deemed Proceeds £6.40 (market value)
Cost (£2.40)
Gift Relief (£2.40)
Gain to tax now £1.60 (£4 actual proceeds less £2.40 cost)

I did a question twice giving two different answers cuz I wasn’t sure which method to use for the company one. Will I get penalised for it?

<cite> @geteveryone said:</cite>
The cost isn’t 24,000 though, it’s 2.4 X No. of shares sold.

The cost would only be 24,000 had all 10,000 shares been sold.

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….

it was kind of tight but i still keep my head up for that PASS.