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UK Tax variant MCQ… taxable profit for 8 months is 1.260.000 £ for the date of 30 september 2014. (270.900)
There was a remark to ignore the empl. allowance for class 1 NIC right after the question…
On the accommodation benefit – I have used the MV when first provided to the employee, I think it was in 2012. I have doubts about the improvements though – can’t remember when they were made…
Also, for part a the chargeable gain was the excess of proceeds not reinvested into the replacement building.
The difference between normal gain and that excess is the amount that was rolled over to the base cost of that replacement.
Also, please can anyone confirm that Felicity originally purchased the 40000 shares at par value?
@sonyam11 said:
Aside from the fact I had a nightmare with this paper could someone please answer the question in the IHT question that asked why it’s more beneficial to leave your estate to grandchildren rather than children??I am at a complete loss, wrote nothing! I know that was only 2 points so no big deal (least of my worries!) but it’s bugging me!
Did everyone else have lots of Cs in the MCQ?
For the IHT, I wrote that if grandchildren inherit the estate instead of the children, then it prevents further IHT tax arising say, when the children eventually die and pass the estate to the grandchildren that way. This is beneficial, provided that the children can financially cope without the inheritance going straight to them first.
For other questions:
– What VAT accounting scheme did people put as most beneficial the VAT return question?
– For the capital allowance working, did people multiply the WDA % by 3/12?
– The Income Tax question (trading profit working) – For the partnership question, I time-apportioned the profit before splitting it between the partner, as the profit arrangement was for January to June 2015 (I think). Based on that as this profit arrangement was for 6 months, I remember taking the profit for Lucille, and further time-apportioning it until the end of the tax year (January to April 2015) – profit x 3/6 months. I put this figure in the computation.
Did anyone do anything similar?
I chose the cash accounting scheme because the business taxable turnover is expected to decrease. Annual accounting requires payment on account.
Yes I time apportioned wda by 3/12
@bose12 said:
I used the market value. The accommodation was given more than 6 years to the employee since it was purchased. The questions were too piled up. Keeping records for to couple with the child benefit charge: the wife is 2017 and husband 2021 because he’s into businessI got the same answer for the MCQ on the records retention. For the accomodation working in the IT question, there were 2 market values, did you use the first one? I incorrrectly used the second one
For the partnership I think it was btw 5months then 7. Profits were shared 20, 40 and before and later equally
I think for the partnership, it stated that they had been in partnership for many years so doesn’t that mean that the year ended December 2014 is the actual tax year for 2014/15 as after the third it generally is year ended December every year onwards?
you did right. by the way there was not allowance but charge. so adding it to profit is correct.
you are welcomeFor part b of the chargeable gain question, how much cost did people deduct from the market value of shares?
I want to confirm whether part b stated that the 40000 shares were originally purchased at par value or not?
I didn’t have negative capital allowance to add back, in the CT question 🙁
How come balancing charges were added? The main rate pool and special rate pool weren’t negative after the disposals, and I don’t remember the company being in their final year of trade?
@beryozka2005 said:
Yes, i did. Glad someone’s got the same answerTo which answer do you mean?
@aminb001 said:
I want to confirm whether part b stated that the 40000 shares were originally purchased at par value or not?Yes, this is what it said – 40,000 shares subscribed (or maybe purchased, not sure on this one) at par, followed by a 1:1 bonus issue.
@sapphire16 said:
I used the most recent market value too but I’m not sure if it was the right market value to use, because the Kaplan book says that we use the market value when the property was first provided.I think the exam gave us two market values (which I wasn’t used to seeing), and so I picked the most recent one which I think was 5 April 2015 (or near the end of the tax year), and I used that instead of the other market value, which was probably from the year that the employee was given the house. (Hopefully we only lose half a mark for this, as the rest of the calculation working would be (MV-75,000) x 3.25%, which I did.
I did as well
@aminb001 said:
I want to confirm whether part b stated that the 40000 shares were originally purchased at par value or not?I am pretty sure thats what it was said
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