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

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

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.

Theory was easy – residency, ordinary, domicile. Timely question..

<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>@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.

The vehicles sold had to be reduced at lower of cost and selling price.

Yes, one had FYA and the oher was main pool.

Q2. I dpnt remember exactly, but yes, most were disallowed other than repainting and free advertising in charity.

UK – question 4 about change of accounting periods was the worst question. Found the rest of it O.K.

<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?

I did the same on Monday and phoned ACCA and they assured me that the examiners manually check if computer cant read marks or in my case I marked two question numbers at top of page as I made mistake initially and wanted to make sure I drew attention to it by marking another question.

Where are people getting PPR from? The question only said sold an asset for 520000 i think and had some legal costs associated with it, that was all.

Rental income only income for the income tax comp which was about 16k???

which left 17350 for 18% gain and the 520 capital gain – what was unused of the 18% band at 28%

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.

<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

Yes, but you’re missing the part of the question where it specifically said that parent and child both elected to defer rollover gain as much as possible. So you do take the market value as deemed proceeds, but the chargable gain is worked out by deducting actual original cost from actual sales price. The rollover amount is then the balancing figure. So, as I and several other people have already said, the calculation would be:

Market Value…………… £6.40
Cost………………………..(£2.40) (the amount it cost the parent originally)
Rollover relief…………..(£2.40) (this is the last figure that is calculated, after working out the amount chargable now, below)
Gain………………………..£1.60 (this is worked out before the relief above, and is actual proceeds (£4) less actual cost (£2.40)

Now that you know the gain per share is £1.60, it’s a simple calculation of the annual exemption divided by the fain: £10,600 / £1.60 = 6625

Uk varient can any tel me that what is blunder…….

Can someone please tell me the answer to this. I rang ACCA about it and they didnt know. Say in income tax we are asked to work out part A and then use part A answer in part B. When we get penalised in Part A for the mistake, does this mean we can not get full marks in part B because we are basing our assumption that part A is correct and we have been penalised already or are we penalised in part B again?

I am a bit of worry about the 1st question it was too much tricky….. have not done that type of question before