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It’s only half a mark probably – if you can look at my post around 10 mins ago I think it’s littered with errors, hoping that the method marks are enough to carry me through.
<cite> @hufckinger said:</cite>
My answers:
Question 1: Messed up the pensions bit a little but extended the BR band and used it as relief against Personal Allowance.
Benefit was at 32% for fuel and car
Benefit for loan interest – I got 73000 average balance for year
Mileage was overclaimed by £1400ish as was at 60p and claimed home to work
Class 1 NI employee and employers was straightforwards
Class 1a NI on Loan interest and fuel and car benefit
Rhoda self employment included the starting rate of 10% savings incomeQ2 – Almost everything disallowed apart from the redecoration and went from there – capital allowances made a balancing charge in SR pool IIRC.
Groups – went with the two listed in later questions making up the other groups (surely ACCA didn’t give the game away on this?Q3 – Shares – I valued at 6.40 less 2.40 then divided 10600 by that amount – but as some others have said, surely that’s too simple?
Q3b – rollover relief – none on first and around 12000 on second
Q3c – I talked about ER and worked his based upon the full rates usedQ4? Computed the VAT return by including net outputs less the 440, 50 fuel scale charge.
Q4 – apportioned the first profit 50400/12×10 = 42000 for first period and then worked through – capital allowances were worked out based upon the first 12 months then started again for the next two and 1/6 of WDA was claimed.
Ltd co – again, apportioned the profit between the two periods (first 12 months and then the next two) Then split capital allowances again, except claimed FYA and AIA where appropriate. (Didn’t apportion the AIA)Q5 – PET – I deducted the NRB at 300,000 plus the £3,000 for 2006/07 and £3000 for 2007/08, as that was what was available at time – guessing this is wrong though? 🙁
Total on estate – half the estate was at 0% as to wife, other half was at 40% (after deducting the £3,000 for 2011/12 and £3000 for 2012/13.Anybody want to give any feedback with how you think I may have done? I was confident, and by doing all this surely there are enough method marks in there?! Cheers in advance 🙂
I think you did pretty well. Don’t feel down if you lost a few marks here and there, as you said, surely if the workings are there, you will not be penalised that much and marks may be awarded for the right method. We are not meant to get ALL questions right..it is an exam. There is time pressure and it is easy to overlook basic figures and facts in some instances. As far as I understand, overlap profits were for 11 months and NRB for IHT was £325000 and no AE on death estate, only applies to lifetime transfers. But you have done good overall..very similar to how I answered except I did not put anything down for the 4 mark Q3a.
<cite> @hufckinger said:</cite>
I think that we had to find the liability – this was roughy:Pension 8000
Interest (received GROSS) 21600
Less PA: (10500)
2710 @ 10%
remainder at 20%There should not have been a repayment.
Shouldn’t the Personal Age Allowance have been reduced as Net Income was over 25400?
How did everyone find the last part of question 5? It seemed almost too easy. 7 marks for Income Tax having to be calculated on rents less insurance and repairs, and captial gains tax on sell of house less probate value and capital enhancements?
<cite> @mohamedd786 said:</cite>
Shouldn’t the Personal Age Allowance have been reduced as Net Income was over 25400?The PA is 8105 minimum.
It further reduced if income increases 100,000.Personal Age Allowances (10,500 and 10,660) reduce if income increases 25400.
Pension 8000
Interest (received GROSS) 21600
Less PA: (10500)
2710 @ 10%
remainder at 20%
There should not have been a repayment.The person allowance is reduced ?? surely! As the income age limited exceeded. Am i correct. For personal allwance I got 8 something….
but do I still have to do interest at 10% then. I don’t think so. I did it at 20%.
Personal allowance for the first but there was No personal allowance correct? Income over 116 ?
q.no1
basic rate extended by 50k , not sure it is correct.occupational pensin deducted from employment income.
q.no.2
it is ok qnq.no.3
chargeable gain for one share is 1.6 so 10600/1.6= 6625. so she can buy 6625 shares.
q.no.4
14 month period.
AIA =25000*14/12.
also, WDA =18%*14/12.not sure again all this are correct.
@vipin
q.no.4
14 month period.
AIA =25000*14/12.
also, WDA =18%*14/12.
not sure again all this are correct.Aghhh you are correct I was thinking shall i shall i not apportion it but i did not in the end:( however I did put the allowance on the right side. As it was for the two month period. Correct? Will I lose alot? I know how to do capital allowance but just did not apportion this! 🙁
But 25k is for the full year so I did CA for 12/13 then did it again for the 2 months 13/14 but then apportioning it for 2 months 2/12. Probably wrong!
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 rateVAT 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 sonc) 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> @beatasz said:</cite>
made so many silly mistakes – just want to pass.same here! i just need 50 marks and i will be fine……lol
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How did you get that? It said in the question that both had used their allowances beyond their max and their incomes were 80000 plus which hinted they would have paid additional Capital Gains at the 28% so the saving that Nigel made was the amount that he would not have gained from ER x 28%. The question asked how much they saved by her making the claim
<cite> @hufckinger said:</cite>
I think that we had to find the liability – this was roughy:Pension 8000
Interest (received GROSS) 21600
Less PA: (10500)
2710 @ 10%
remainder at 20%There should not have been a repayment.
I reduced her PA as income exceeded 25,400
Hey, How did people find F6 Irish variant. I thought the VAT question was very very hard and the overall paper did not go well. Thought the RCT was very unfair and the annual accounts system I ended up just writing this is used by both people on invoices and cash receipts basis. I hadn’t a clue and it was no where in my book. Very disappointed as I worked my ass of for this exam and it was a repeat. Thought the shares part of the CGT was very strange? Anyone else think this? Income tax question was okay. I took the pension paid off the income from all sources which I do not know why I did it. Did people treat the shares right as a BIK? I put 3000 for this took the difference between the 7000 and the 4000 and then I put a refundable credit of 41% of the 3000? Is that right? CT question was ok. Hopefully I did enough to get the 50 but the fact that I am down 10 marks already from the VAT has failure in my mind. Anyone else think the same as me?
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I think AMAP was only claimable for the journeys from work to clients (4750 miles) i think, the other two are not allowed
<cite> @ifeoluwakiitan said:</cite>
same here! i just need 50 marks and i will be fine……lolI am hoping you are right as mine was very similar!!
Q5. Did you give the son PRR relief at Gain x 36 months exempt/ 67 months I think – off the top of my head!? I did so I hope that’s right! What did people have the gross PET charge at??
Also Q3. I did different. Market value of shares £6.40 less cost £2.40 = £4 £10600 annual exemp/£4 gain per share = 2560 shares… But I know a lot of people are disagreeing with this!
VAT output on fuel Scale I did the amount given divided by 120 x 20. Can’t remember the amount given?!
I put the debt was not allowable for recovery until the next VAT return.
If the VAT return was late I said the default surcharge would begin its 12months again & as this was the 2nd default within the last return being late there would be a charge of 2% charge on the tax payable (as long as it was over £400- which it was!)
<cite> @mohamedd786 said:</cite>
Here are the answers I put down1) % 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 rateVAT 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 sonc) 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 .
Pretty much exactly the same as you! 🙂
plz tell me how to calculate number of share sold in capital gain question 3 part (a)
<cite> @mohamedd786 said:</cite>
Here are the answers I put down1) % 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 rateVAT 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 sonc) 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 .
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!
pls help me !!!!! if i feel OK about the exam , how much chance do I have for passing?
<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!
I think the entertaining overseas customers is allowable. I put this in my calculation too. It’s the entertaining UK customers that isn’t. I think anyway.
Good will with F7, try to do the pro-forma of the financial statements and put the figures in that don’t need adjusting as you get marks for those. Try not to get too stressed in the exam 🙂
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