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

Just realised there is a period of account ending in the tax year 2013/14.
Got that part wrong then!

q1 straight forward enough.
q2 messed up and tine apportiined the first year allowance for 3rd conpany.

I moved capital loss from 1 to 2 as it cant be relieved against trading loss. moved 3rd trading loss to 1 as paying marginal rate. didnt surrender charitable donation from 3 as not allowed until all income from 3 had been relieved. anyonr agree?

re vat I just apportioned fuel which I think is ok but should really be and input and output I think. for photocopier I only claimed 4 yrs back. but also included jan to march – not sure of that was already included?

q3 straight forward but didnt have any conditions re holdover relief.

q4 & 5 straight forward

for question number 5 you were suppose to bring in the clt deduct the annual exemption for the yr in which clt was made bring forward another annual exemption from the previous year. deduct this figure from the nrb on the date he died. look at the value of pet which was made deduct 2 annual exemptions again look at the value of the pet then deduct the remaning nrb left after the clt 1. allocate the reamining nrb to the pet work out iht at a rate of 40%. once this is done. take out the gross value of the clt which was made . so to determine how much nrb to use in the death estate u would make a column for ur transfers after taking out the annual exemptions take out the clt as 7 yrs have elapsed since transfer was made. from the nrb of 325k deduct the value of pet this is the nrb to be carried forward in death estate.
bring in all the assets owned her property isa’s building society etc.. etc.. deduct the funeral expenses. once u have worked out the value for chargeable estate deduct reamining nrb brought forward from ur previous calculations rest is taxed at 40%. this is what i done lol

So did I. Completely missed that

Hoping I did enough to pass but doubt it’ll be a high percentage.

@aleem pretty certain the figures were VAT amounts so didn’t need to calculate 20%

For Q1 – for trading income I used the first 4 months and then 8 months from the accounts y/e 30 April 2014. This is because April 13 accounts ends in 13/14 but it is less than 12 months so you need to tax first 12 months of trading.

Q3 – I thought the repairs to the roof was disallowable because the property couldn’t be rented out before doing the repairs so I didn’t deduct from proceeds.

Anyone know when we can view the answers?

@Aleem you’re right but then in order to calculate IHT as a result of death, is it not necessary to have determined, hence revise, any prior CLT/PETs? Unless I’ve misunderstood the argument, lifetime gifts need to be revised as a result of death. Surely, if there were any CLT gifts within 7 years to time of death, these will impact on the applicable death’s NRB (by way of reduction). So to me, it is a case of one calculation preceding the other 🙂

And oh @Aleem, going by the wording of the question, I think the 20% is already deducted for the VAT question. Please don’t quote me on this particular question though 😛 But seriously, often the way to know whether or not to make any 20% adjustment is to watch out for the terminologies used in setting the question requirement.
For example, when you see questions that state that the “figures are VAT exclusive”, then you are likely expected to adjust for the 20% rate, unless of course it is stated otherwise . As the question used words like “VAT charged” and “VAT incurred”, this is an indication that the VAT rate has already been applied, hence the VAT figures ‘charged’ or ‘incurred’.

Thanks….just before the exam last 3 days after revising I practiced almost about 40 mix questions which gave me a good grip.

QUESTIONS ARE NOW AVAILABLE ON ACCA WEBSITE SO PEOPLE UNSURE OF VAT QUESTION AND GO THERE AND HAVE A LOOK. I M WAITING FOR THE ANSWERS TO BE POSTED…

Ohh thats sad to know… may be if open tution can post the solution for it…