ATX*** June 2022 ACCA ATX exam – Instant Poll and comments ***

The exam was fair, I just felt there was too little information provided for the requirements. Also, mind went completely blank in the last question. Good luck guys

any one please tell which topic tested in ATX paper

Thought the paper was okay. For the final section, I had a question on how the loss on the disposal of EIS shares could be relieved. This was one part I wasn’t sure of. I basically stated it could be treated as a capital loss, or opted to have it treated as a trading loss and relieved as such (against total income for the year of loss or previous year - not enough loss for both or chargeable gains). Oh and the final part with the overall interest saving by using his investment to repay a mortgage, so the interest saved vs interest income generated and the tax implications of both.

I agree that the exam was fair. I did feel though that not a lot of the syllabus was covered and I barely did any calculations? The EIS relief was one part that I hadn’t really revised, I think I said that because the shares hadn’t been held for 5 years, the relief would be added back to income tax but I have no idea if that is right or not. The other question that threw me was the split year basis!

I did very well the first 35 marks question , I couldn’t do the 6 marks part in 25 marks question. Q3 was okay. And I again couldn’t write 6 marks part in question 4. Would there still be a chance?

umar wrote:any one please tell which topic tested in ATX paper

IHT on a death estate, opening years trade losses relief, buying shares from a shareholder by the company -CGT conditions, SIP shares and income tax.

Can someone explain the conditions for the capital gains charge for buying shares back from shareholder please?

I thought exam went well Trading loss adjusted i did from start date to 5 April so adjusted for the months The shares bit for capital treatment i said for it to be capital treatment holding must be reduced by 75% otherwise would of been treated as dividends The IHT one where it says calc IHT on worst situation (something like that) I assumed on death with no taper relief Can’t remember too much else to be honest but also found i didn’t do much calculations mostly writing Only question I didn’t know was the little 3 marker on the SIP shares but made something up for the sake of it

The Conditions for Re-Purchase it back from shareholders are: 1: Company must be an un-quoted company. 2: Shareholder must have holding for 5 years if its inherited then it should be 3 years. 3: After Re-Purchase the shareholding should be less than 30%. 4: Change in shareholding should be 25% or more. 5: Shareholder must have dispute with company.

Hello guys the questions which i got in my Atx morning shift are listed below. Overall paper was Ok. I completed my whole paper in allocated time. Guys what you got in your paper. Hopefully i will pass this time inshallah. Question 1 Prepare Memorandum for following requirement Req:(A) Knowledge Obtain for advising the client what is meant by Professional behavior. (Mark's : 5) Req:(B) Conditions for Re-Purchase of shares by company ( Mark's : 6) Req:(C) Potential Advantages and Disadvantages for Olma in voluntary registration of VAT (Mark's :9) Req:(D) First year losses adjustments for Olma and Basis Period. (Mark's: 9 marks) Question 2 Req:(A) Calculation of Income tax liability of Huggon. (Mark's :9) Req:(B) State the Conditions of share Incentive plan (Mark's :3) Req:(C) Calculation of Chargeable gains and after tax proceed if the shares are disposed before the uk residents and after the Uk resident. (Mark's :9) Req:(D) Gift to discretionary trust why this is subject to Uk and Calculations of IHT tax liability (Mark's :5) Question:3 (Fox ltd) Req:(A) Chargeable Gain on disposal of leased free hold building and explanation for Deffered tax treatment (Mark's: 5). Req:(B) Explanation of Rollover relief in respect with changeable Gains Group. (Mark's :6) Req:(C) Loss Adjustment for the Group perspective (Mark's:9) Question:4 Req:(A) Maximum IHT tax liability for gift (Mark's :5) Req:(B) Explanation on treatment of EIS shares after the disposal of EIS shares. (ii) Capital loss relief after disposal of EIS Shares. Req:(C) explanation on cash deposit in bank and Interest payable on the residential property. (ii) After Tax saving if all deposited cash in bank withdraw and set off the mortgages.

Firstly, hats off to your memory. I got exactly the same paper, and you have put literally every question along with marks.

I also had that paper. I'd be interested to know how you answered some of the questions

Could someone please tell me how the loss in Q1 was answered and Q2 or in general how any calculation questions were answered

My review of the ATX ( UK ) Exam June - 2022 : The following were the most disastrous questions : 1. 9 damn mks for a ROR question with hardly 3 figures. No sub-question. 2. 9-odd damn mks for group relief question again hardly having 2 figures. No sub-question. 3. 6 mks for mortgage + interest implications. Hardly any popular topics appeared. No BPR, No GR, No BADR, No R&D, No SSE, No DGC, No Capital Gains Relief, No RBC, No VAT CGS, No VAT L&B. Other topics having a reasonable chance of appearing like CFC, PE, Temporary Absence - CGT, Pensions, Charity exemption, Change of A/c date, and EMI, didn't feature too! Around half of these were present in the S/D 2021 paper. Amongst the popular ones, opening years LR appeared ( and obviously TR didn't appear then ), and so did IHT UK R vs NR, ROR, BADR ( although in very limited detail ), Gift to Trust, GRG, VAT Registration, Calculation of ITL, DTR. Compared with S/D 2021 paper, this paper expected far too much with fewer details at the disposal, and quite some topics that have less usually featured popped up. Sub-questions were very limited, difficultly level was higher than in the previous paper. Loss on disposal of EIS shares probably appeared for the first time. CG getting crystalized in 10 yrs for depreciating assets for ROR purposes also probably made its debut. Given that PSC is examined limitedly as expressly given in the examiner reports, it wasn't a surprise to not see it. However, a few liquidation criteria applicable to quality for capital receipts did come- two of which they had already mentioned in the question, and the four remaining had to be listed out. The first question was good, it gave a fair indication that difficult ones are to follow and it happened! The second was average, and the third and short were nothing short of disaster majoritarian. The exam was time pressured indeed although as compared to past papers & mocks, better time management was possible.

How people answered this please? I got so confused! Question:3 (Fox ltd) Req:(A) Chargeable Gain on disposal of leased free hold building and explanation for Deffered tax treatment (Mark’s: 5).

This is how o answered the question. The gain on the sale of the lease was calculated using the percentages given in the question, this is because it was the sale of a wasting asset. The deferred tax treatment from the sale in 2007 was rolled over to an asset with less than 60 years so was not deferred but was frozen and crystallised after 10 years.

Thanks!

Has anyone appeared for the ATX exam today?