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Not sure if this is right but I apportioned the gain for the time is was used in business and said this can be transferred as rollover relief. It should be offset against the warehouse as the FACTORY B would be treated as a sale of no gain no loss and lowering the base cost even more could lead to a high regrouping hchsrge if they separate so better held against the warehouse purchase
joannao wrote:Anyone know to solve the question with Factory A, B, warehouse and this rollover relief?
I apportioned the gain as well but to reflect the time the Factory A has not been used for business. I then used it against Factory B, cause I thought this 30% of a warehouse not being used for business is not right for the rollover relief. But the factory A wasn’t used whole time in the business too, so I was very very confused what to do here.
I apportioned the gain as well but to reflect the time the Factory A has not been used for business. I then used it against Factory B, cause I thought this 30% of a warehouse not being used for business is not right for the rollover relief. But the factory A wasn’t used whole time in the business too, so I was very very confused what to do here.
rachelmin wrote:Not sure if this is right but I apportioned the gain for the time is was used in business and said this can be transferred as rollover relief. It should be offset against the warehouse as the FACTORY B would be treated as a sale of no gain no loss and lowering the base cost even more could lead to a high regrouping hchsrge if they separate so better held against the warehouse purchase
Yes you could be completely right I didn’t clock the new warehouse was only used 30% business related. I wish we could take a look at the questions … but then I would just be ob be obsessing even more…
SandraaB wrote:Unfortunately I did not get to the end of intensively fixed assets treatment either ,but for PR relief – – he had 6 unqualifying month when he went second time abroad as this was not preceded by the actual occupation
Damn you are right, at the start of the period when he was working abroad he purchased the property! I think I failed this exam!
The accounting periods you were suppose to compare the two profits for the first two tax years had the accounting date been changed to July rather than March. There would have been less profits to pay tax on as for March there were 5 extra months of profit charged.
rachelmin wrote:For those that has the paper with Q1 being liquidation
How did you calculate the gain and loss of the intangible assets?<br>I just did sale- cost and ignored amortisation.I included the amortisation for both goodwill and brand. The wasted a lot of time on the goodwill cause it said that the amortisation was not tax deductible. My calculation for both were sale proceeds less cost, plus amortisation. Think it through like capital allowance treatment, if amortisation for the brand is tax deductible/capital allowance part of the cost will need to be decreased so when it is sold, a higher profit/balancing charge will be made. Despite the goodwill is not tax deductible, but it has been amortised in the accounts, so the accumulated cost (cost less amortisation) will be deducted against sale proceeds to work out the profit or loss on disposal.
I read it as the amortisation was not taxed deducted in the accounts – ie ) it would have been added back i the accounts for tax purposes. It’s very annoying because the questions really aren’t structured in an easy to read way that you can actually understand what’s going on. And it’s so time pressed it’s hard to write down all these assumptions
But it’s just four marks!! I’m painfully optimistic all those this is decreasing by the minute
To be fair under such time pressure it was hard to spend too much time to gather thoughts. I didn’t spend long reading the scenarios, but had a quick look and proceed with answering.
I didn’t think this exam was hard, given more time I would have pass. In hindsight I would have started from question 3 and 4 first.
…. were the accounts for Fiona ( foreign) suppose to be done on a split year basis?
rachelmin wrote:Nor did I! Sorry completely obessing as it’s my last exam
I took my last two ATX alongside SBL so fingers cross I pass both so now just relaxing and hope for the best! ATX is not hard. AFM was way harder with long lengthy scenario and calculation intensive.
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