*** F6 June 2014 Exam was.. Instant Poll and comments ***

Agree. Was very lengthy. I had an hour to go and was only 80% of the way through question 2… Felt it was an ok paper though. Hopefully enough to pass 🙂

From the poll results it looks like most people had the same feelings about the exam as me.
Q1 was a nice question in my opinion, I like the way they tested the income tax liability. I would hope I’ve picked up a lot of marks on this question though undoubtedly not perfect.
Q2 was the trickiest of them all, often when doing calcs I can realise what the examiner was going for, not the case for me here with the loss reliefs but I think I will have picked up a few of the easier marks for the capital allowances etc and other straightforward workings.
Q3 Nice question. I may have been a little brief on part b) but I was a little behind on time following the long tax calculations so I had to make it up somewhere.
Q4 Very straightforward, easiest in the whole paper in my opinion.
Q5 I messed up a little here, realised that the CLT was more than 7 years before death when I was picking up my bag to leave the exam hall and so this was testing the 7yr cumulation period. Hopefully again picked up a few marks with the other IHT workings. Part b and c were fine.

I believe the numbers were VAT. No need to take 20%.

How did people work out the value of the property is the Q5 on IHT

Value for 970000 i think and potential capital gain on disposal was £176k ish. Assuming the property qualifies for PPR, is it simply just a deduction of the gain from the value. Any outstanding mortgage on the property would be in the accounted for in the deductible expenses or allowable costs, couldn’t figure out which one.

Question 1 was relatively straight forward but second guessed myself on the accommodation benefit and right at the last minute I changed my answer on from the higher of the annual charge and employer rent to the lower.

Question 3 on CGT note 1 on the warehouse. How did you treat the addition of the extension and the repair of the floor? On the assumption that the extension was enhancement/capital I included it in CGT computation but excluded the floor repair this was probably treated as expense and deducted from property income.

Pretty sure I failed this due to poor time management and too many small mistakes that would not result in any carry over marks

The open tuition lecturer talked a lot about presentation and layout of answers and my answer booklet was a complete mess

Please any body till me in Q5 is CLT will calculate IHT in life time

Earned over £60,000 so sll payable back for child benefit

You’d use the net income figure and I guess you would get follow on marks if your net income figure was incorrect.

It could go either way. It was a very taxing (excuse the pun) and tricky paper … If it hadn’t been an exam I’d have said the paper was interesting (?!). I didn’t finish, though. Hopped from question to question like a grasshopper. Hope my answers made sense to Mr Harrowven!

Q1 – Computation, not too bad, I didn’t spot the dividend until the end so had to go back and correct, think I messed up PBP, but the other benefits were okay.
The child benefit charge, I said was the full £1.7 (or whatever they said) as he earned over £60k. (Took a guess). The pension question at the end, fairly easy.

Q2 – A lot to take in. I left the capital loss in the main company, and transferred the trading loss from company 3 to company 1 as well, as they were paying marginal rate tax – Again, not sure.
The VAT was okay. Company 1, vat payable, Company 2, exempt supplies so no recoverable VAT and company 3, zero rated so VAT recoverable. VAT chargeable to interco’s was chargeable as they were not registered as a group. Didn’t know how to treated the unclaimed VAT payment on the leased photocopier…
I recall a little bit on PAYE too, I mentioned electronic submission, P60’s and P11d’s.

Q3 – Quite a nice CGT question I thought. I did; Warehouse, Disposal less cost, less roof enhancement. Land – find cost using A/A+B method. Shares, used the share pool method, Gifted shares, used MV (after doing quarter up vs average method).
Part b) I had, Warehouse = rollover relief, Shares = Entrepreneurs relief, gifted shares = Gift relief.

Q4 – Not sure if this was really was an easy as I made it or whether I missed the point completely. Not done Self employed NI so took a stab at that part.

Q5 – First was a CLT, I excluded for the purpose of death tax as was longer than 7 years ago, but used to work out how much Nil rate band was remaining on the following PET? Again that was a guess.

The bit about transferring the house immediately, I had that CGT was chargeable on the gain at 28%, and if she didn’t survive 7 years (as it was indicated she wouldn’t) then also IHT at 40% upon her death.
Final question about leaving estate to grandchildren as well as children? Not a clue. I wrote something about habitual expenditure being exempt from IHT.

The CLT from Q5 was over 7 years so the net amount less annual exemptions is what affected the nil rate band so taking that from the band on at the time of the PET would give you the nil rate band to apply. well that is the way i work it. dont know if i was correct.

would like to know though what others did with section b of the question.

@sangria, like other people I said child benefit was exempt but I’m pretty certain this is wrong and possibly a lot of people made an error in part a. Did you have any income under property income?