*** F6 June 2015 Exam was.. Instant Poll and comments ***

Any one could remember what deductible from death state?i put mortgage endowment and promise to pay friends debts but not sure what the question asking for.

My question is For F6 UK marks are awarded base on workings done to arrive at the answer?
Let’s say someone has all the workings done eg calculation of fuel benefit, capital allowances etc assuming some are right but their format is not properly done will the marks still be awarded to the individual?
My reason for asking this is when you look at the how the marks are awarded (bpp study kit) it’s for the workings.
I would really appreciate some clarification on this.
Thank you.

Question 3 required calculation of Fergus Income tax, NIC (employee and employer), and corporation tax, and then compare the totals with the trading & NIC liabilities already given in the question. It would be more favorable if Fergus incorporates his business, than continue to trade unincorporated.
Question 2 on Share disposal required the set up of a share pull for acquisitions/disposal from Pluto remembering to index prior to ‘operative events’ i.e. the first 10,000 shares disposed from acquisitions from Pluto.
Question 1: The unused nil rate band is transferred and used-up on the chargeable lifetime transfer.
Question 6: Adjusting trading loss. Same add back deductions not allowed technique. Ended up with a reduced adjusted trading loss. Carry back loss relief max 12 months, so I think only 5/12 of the lost relief in the year ended Aug 2013 was available.
Question 4: On VAT, I think the figures were all VAT-inclusive, hence use the VAT fraction 1/6 to get the VAT. The flat rate scheme, the 12% flat rate * Taxable supplies (Standard, zero-rated & exempt supplies). It wasn’t profitable to use the flat rate.
Question 5: Employment income. I don’t remember all, but the lease car should have 15% disallowed, the 2 mobile phones, the taxable benefit is 20% * cost (for one), the living accommodation had the rateable value and additional benefit as the cost of providing the house exceeded 75,000. The travel expense mileage from work to the office (cant remember the Coy’s name) is not an allowable deduction. I think other mileages are allowed, so multiply with the amount the Coy reimbursed.

Treatment of Unused Indexation Allowance: The indexation allowance cannot serve to create/or increase a loss. If the coy’s already makes a loss, then indexation allowance is forfeited, if the indexation allowance is greater than unindexed gain, the gain is reduced to Nil, remaining indexation allowance is lost.

Multiple choice questions (strange how you all remember your answers, let me try).
Tax evasion is illegal
The child benefit income tax charge is 531
The trustees pay additional tax on CLT after 6 months (31 July)
2 ties for the dude who doesnt want to be UK resident
I give up (cant remember anything, but MCQ’s were a bit easy)

I shouldn’t forget to thank open tuition, and wish you all success

Made silly mistakes in all the questions I think VAT was the easiest question and mcqs were ok hope we all pass amen

I did the mcqs really well, I made silly mistake in IHT by not taking the nil rate band, i know how to use it, but never accounted it.
others were shape, question 2 almost gave me goosebumps, I read it several tym then it was the easiest question of the lot.
overall paper was easy. Can pass!!

@jamiej55 said:
MCQ

1) Tax evasion is illegal avoidance is not
2) Employer pays Class 1 and Class 1a
3) Output VAT on fuel scale charge of 68 and Input VAT of 100 as 100% deductible
4) Child benefit from memory 30% of 1796 coming to around 530 something
5) Penalty of 10%
6) Payment on account 50% of 13/14 tax and Class 4 NIC = 340 something
7) 70,000 (cap on income 50,000 + capital loss b/f 20,000)
8) Group relief question I can’t remember the question but I put D
9) Question 1 I guessed at A
10) UK resident test I put max of 2 ties

Section B

Q5) I think I got 136,000 then worked out the marginal relief remembering to split the upper and lower bands in half due to the associated company. For the relief I think I did 12 month back which was the 9 month period and 3/12 of the previous year end. I was unsure if to put the delivery van in a special rate pool or if it qualified for AIA, I decided to claim AIA on it

Q6) Only one mobile phone allowable, pro rated to 5/12 and 7/12 for the car benefit and something else, travel and subsistence allowable, annual value + (140,000 + 9,000 – 75,000) x 3.25%, fuel benefit using AMAP

Q4) Worked out flat rate scheme 12% on total taxable turnover, including the zero rated sales. Worked out more beneficial not to use the flat rate scheme.

Q2) Part be I think I just put 16,000 shares x 3.4 + 6.4 as the proceeds or something and part a I think I set out correctly but calculated the indexation’s wrong.

Q3) I frantically scribbled some calculations down at the end of the exam as run out of time, basically just calculated Fergus income tax payable, and scribbled even with Augmented profits still small rate so x 20%. No idea if what I did was right but anything was better than nothing

Q1) Completely left as hate IHT

Touch and go for me I reckon, be good to hear everyone else’s views

I don’t think we were asked to calculate corporation tax payable; just the adjusted trading loss. Don’t even remember seeing an associated company lol. Hope to pass

Kolkleen..you’re right. The question (corporation 5 or 6 can’t remember) didnt ask us to go as far as to calculate the tax payable, only the tax adjusted trading loss.

Any amount of NRB that has not been utilised at the time of a person’s death can be transferred to their spouse or civil partner.

• The surviving spouse or civil partner will have the benefit of
– their own NRB, and
– any unused proportion of their spouse’s or civil partner’s NRB.
• This increased NRB can be used against any lifetime gifts taxable as a result of the donor’s death AND the death estate.
• The amount of the NRB that can be claimed is based on the proportion that was unused by the first spouse to die.
• The unused proportion is applied to the NRB available on the second spouse’s death.

You calc Hubby’s unused NRB %, then apply it to Wife’s NRB and get the unused NRB in $.
Then add the calculated amount to Wife’s NRB.

Unused NRB of hubby is 20% if you calulate, it will come as 65000. then add it to wife’s NRB (325000+65000=390000)

Then when calculating IHT As A Result Of Death, you shuold use this 390000 instead of 325000.

@onyxera said:
Question 3 required calculation of Fergus Income tax, NIC (employee and employer), and corporation tax, and then compare the totals with the trading & NIC liabilities already given in the question. It would be more favorable if Fergus incorporates his business, than continue to trade unincorporated.
Question 2 on Share disposal required the set up of a share pull for acquisitions/disposal from Pluto remembering to index prior to ‘operative events’ i.e. the first 10,000 shares disposed from acquisitions from Pluto.
Question 1: The unused nil rate band is transferred and used-up on the chargeable lifetime transfer.
Question 6: Adjusting trading loss. Same add back deductions not allowed technique. Ended up with a reduced adjusted trading loss. Carry back loss relief max 12 months, so I think only 5/12 of the lost relief in the year ended Aug 2013 was available.
Question 4: On VAT, I think the figures were all VAT-inclusive, hence use the VAT fraction 1/6 to get the VAT. The flat rate scheme, the 12% flat rate * Taxable supplies (Standard, zero-rated & exempt supplies). It wasn’t profitable to use the flat rate.
Question 5: Employment income. I don’t remember all, but the lease car should have 15% disallowed, the 2 mobile phones, the taxable benefit is 20% * cost (for one), the living accommodation had the rateable value and additional benefit as the cost of providing the house exceeded 75,000. The travel expense mileage from work to the office (cant remember the Coy’s name) is not an allowable deduction. I think other mileages are allowed, so multiply with the amount the Coy reimbursed.

Treatment of Unused Indexation Allowance: The indexation allowance cannot serve to create/or increase a loss. If the coy’s already makes a loss, then indexation allowance is forfeited, if the indexation allowance is greater than unindexed gain, the gain is reduced to Nil, remaining indexation allowance is lost.

Multiple choice questions (strange how you all remember your answers, let me try).
Tax evasion is illegal
The child benefit income tax charge is 531
The trustees pay additional tax on CLT after 6 months (31 July)
2 ties for the dude who doesnt want to be UK resident
I give up (cant remember anything, but MCQ’s were a bit easy)

I shouldn’t forget to thank open tuition, and wish you all success

Q6 loss was an early year loss so it can be carried back to 3 previous years right?

hi can u or anyone tell me if i made a big mistake by using : for example: < 800 > these brackets to show deductions instead of these (800) through out the paper?
am i in trouble?
😛

ACCA have put the exam paper up online, can a member of open tuition possibly go through it and tell us the answers to put our minds as easy for the next 2 months?

All this discussion makes no sense unless we have the questions. We can try to remember what a particular question asked for….we might remember the approach but to try to compare answers…we would need the actual question. So wait a while folks.
All I can say is that the exam was very manageable. It was not as difficult as previous exams but I’m certain the ‘handicap’ marks that the examiners usually give for difficult exams won’t be awarded in any way because this was fairly straightforward.
I had put in my work before the exam, did my best and now trusting God for a good mark!
I wish all the best success!

It was fair. . .