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@fahim
Consideration x
Add degrouping charge xLess indexed cost
Indexed gain @ 26 as per limits co is largeShare calculation was easy
Trade assets
Balancing allowances on equipment and miller machine
Add : profit on disposal of goodwill
Add capital gain on building ( base cost after rollover )Again tax at 26 because trade holder asset company profits lied in higher rate
Tax value was zero . And as no SSE so it wasn’t trading. So no capital allowance was there so straightforward cost had to be taken in finding out balancing allowances.
@muneebnawaz90 said:
@fahim
Consideration x
Add degrouping charge xLess indexed cost
Indexed gain @ 26 as per limits co is largeShare calculation was easy
Trade assets
Balancing allowances on equipment and miller machine
Add : profit on disposal of goodwill
Add capital gain on building ( base cost after rollover )Again tax at 26 because trade holder asset company profits lied in higher rate
Tax value was zero . And as no SSE so it wasn’t trading. So no capital allowance was there so straightforward cost had to be taken in finding out balancing allowances.
Check this examiner comment out guy : https://www.pqaccountant.com/pmag-FFFF00500180024B02171957.html
@laila what can we say 🙁
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there are 1000s of students who pass this paper each year with out any experence.According to me just ensure that you have revised the book with in 3-4 days before exam.
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Yes, quite a disastrous paper. Every question was really difficult. Question 4 on leases was impossible, it left only Qs 3 and 5 as the 2 options to choose from !
The question on CGT payment by installments – I have not come across this issue in my study course, nor in any practice questions. Does anyone know the answer? I didn’t think CGT is payable by installments only that payment due by 31 January following year of the CGT gain. I said that CGT is not payable by installments, but as the question asked “if CGT is payable by installments what other factors should the client know about”, I probably got it completely wrong. I suppose the examiner gave the answer away there. What a really obscure part of the syllabus to test our knowledge on!
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yes, cgt is payable in instalments in two situations:
on certain lifetime gifts
and where payments are received in instalments.
an advice for p6 always use kaplan study text.@jk0323 said:
yes, cgt is payable in instalments in two situations:
on certain lifetime gifts
and where payments are received in instalments.
an advice for p6 always use kaplan study text.I used kaplan so ?
The issue of entrepreneur relief as in associate disposal , CGT installments WTH topics !Have you cme across the inheritance tax calculation ? Transfer to trust prior to death ? What an incomplete info ! How can one identify on that transfer when their is no info on tax paid , NRB. These things are required to get NRB amount to be used at death !! Huh
Well what can I say, I have never sat an exam in my life and felt so deflated during and after, what a joke.
3months studying, anticipation and stress while holding down a full time job and neglecting quality time with the wife for a paper like this?.
Fair enough I wasn’t well prepared in the last few days cos I concentrated on Audit last monday which was at least a humanely paper but these kind of questions wouldn’t have made a difference even if I was fully prepared. Where did this guy get these questions from? I heard he has an argument with his wife and then writes the questions. Well if our future is in the hand of guys like this then God help us.
I sat 11papers from starting with F2 in 2009, sat 1or 2papers at time due to work, only failed F9 once and passed all of them, yet Im sat here thinking, am I capable? what if it takes me 10 attempts? Im seriously considering whether to drop Tax and do P5 although this was the first time. No chance of passing this one, at least hope to clear P7.
Good luck everyone.
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Tax usually has best pass marks… I guess it’s not the case for this sitting….
A bit in relief AFTER reading all the comments, atleast one can enjoy these comments rather than thinking bout the damn! paper
does anybody think that marking scheme will be bit relaxed as presumably not a single person commented that the exam was OK/EASY/FAIR.
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I actually feel much better after reading some of the other comments, the last 24 hours i’ve been so dejected and angry.
On day 1, i was told by my BPP tutor that there’s no way to learn everything in this module in 3 months, you need to make sure you know the fundamental topics really well. That’s exactly what I did, studying day and night for weeks on end, and I felt pretty confident going in.
What chance do you have when the examiner picks such obscure topics to examine in detail? In the end, he’s not testing candidate’s key knowledge of major topics, but their ability to recall specific facts about far flung areas of the syllabus.
Sometimes you get the impression the examiner is not testing your knowledge so much as trying to cause you problems.
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Is good to know am not alone
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@jk0323 said:
yes, cgt is payable in instalments in two situations:
on certain lifetime gifts
and where payments are received in instalments.
an advice for p6 always use kaplan study text.I used kaplan so ?
The issue of entrepreneur relief as in associate disposal , CGT installments WTH topics !CGT instalments is given on page number= 151 in chapter number 6 and associated dispoal is give on page 230 in the entrepreneurs relief. Kaplan covers all the topics in the best maner.
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https://www.pqaccountant.com/pmag-FFFF00500180024B02171957.html
We should all complain ACCA UK for this kind of questions and specially on the above article. Rorry Fish wants all of us to work in tax environment to pass this paper. Then Lisa will demand to work in Audit firms to pass p7. Then F5/P5 and F9/P4 examiners will want us to work in those sectors. Then David Kelly will recommend to be a barrister to pas f4. This is completely bullshit.
Regarding yesterday’s exam, I didn’t do well in q1. Q2, I started it and then crossed the page and started it again. Thought i am doing wrong calculation of losses. It was almost all over for me in one hour but section B was a bit relief. Did Q4 and Q5 but not sure about 6 marks part in Q6. I just threw the points of answer sheets. Thanks to the power failure, got 5 mins extra and was able to wind up answers. Don’t even remember what i wrote. Praying for the magic 50.
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Here is what i did. Only remember this.
Q1: messed up 18 marks part. expecting only 3-4.
Q2: loss reliefs: most tax efficient option was obtaining opening year of losses reliefs as it reduces liability of employment income as well in 2010. Other two options i mentioned were set off against current year total income and set off against last year total income and/or gains.Q4: Vat registration adv/disad was peice of cake. Can vulcan partnerhips be subject to registration in future? I answered yes as their current per anum revenue is about 71K.
Q5: CLT to trust. 320000 CLT less 280000 NRB (dont remember exact figures but i took nrb of that year) * 25% IHT as he was going to pay tax. On death, No additional tax because NRB covers the amount.
Info to request:
list of all cash gifts made to family members because only small gifts less than 250 are exempt.
list of gifts made to spouse because this is fully exempt.
Confirm whether spouse NRB is still unused to take advantage.
and 3-4 more things
Can someone please confirm the above answers and remind of remaining parts of these questions so that we can confirm?
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come on guys stop complaining now you should have studied hard earlier…..you should have read the whole finance act thoroughly before passing this exam…do you really think you can become an affiliate with just putting a miserable effort……..grow up…..
well there were 4 things in death calculations
i added them up
used nil rate band.
calculate tax at 40% then deduct tax of 25% on shares DTR . and IHT was there.
question stated that no tax was paid on that trust gift. that was the hint that it was just because was due there, he didnt know abt that. ur calculations and mine are totally different .. plus as penalty i said 3% intrest on IHT due for 4 months i think . he died on 1 feb so IHT was payable 6 months after the death month so it was 31 july. and he paid 4 months late so intrest was of 4 months .- Topics: 0
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I thought the exam was okay.
Q1 (a) I added the degrouping charge to the consideration and deducted the cost + indexation. For the trade and assets I got a balancing charge for the equipment and mill machine, chargeable gain for the goodwill and building. I know the question stated rollover relief, but I thought it was holdover relief, as the reinvestment was in fixed plant & machinery, i.e. a depreciating asset. So I said the £8,500 gain was now chargeable (as it now met one of the 3 holdover relief tests).
(b) I talked about the approved v unapproved schemes and stated that CSOP is good as he wanted to only offer it to senior managers. I also said employees/directors who own >25% are inelligible.
(c) Ethics was a gift
Q2. (a) I calculated the basis of assessment for the first 3 tax years. I only got a loss in the 3rd tax year. I then discussed how this could be relieved – take it back 3 tax years on a FIFO basis, against CY and/or PY in any oder, against gains after other income in CY and/or PY, and carry forward (which I stated she didn’t want to do).
(b) Gift relief was available because it was a CLT and the claim must be submitted within 2 years of the gift by both the donor and donee.
(c) Information required for IHT – value of the gifts, who they were to, if any tax was paid on the previous CLT to trust, when the gifts were made.
Q3 (a) I calculated the car benefit as normal and said it would be treated as a dividend because the company was a close company (controlled by any number of directors). I said it would be taxed at normal dividend tax rates.
(b) I talked about pre-liquidator it would be a dividend, and post liquidator it would be treated as a capital disposal and entrepreneurs relief would be available on any gain because Katherine (?) owned over 5% of the company and would probably have held the shares for 12 months pre-liquidation.
(c) I said that the company would be taxed at the main-rate of 26% as it was a close investment company. I also said DTR was available on the overseas chargeable gain. I wasn’t sure which expenses were/were not allowance so just put them all in and taxed at 26% less DTR.
Q4 (a) I had no idea about entrepreneurs being available on disposal of a lease, so said the lease must have been held for at least 12 months and be part of the trade. I’ve had a look online for this and can’t see anything – does anyone have any ideas about this?
(b) I calculated the gain on the lease disposal (proceeds less (cost x lease % now divided by lease % acquisition), the gains on the disposal of shares in Vulcan, the part disposal of the land, and the loss on the shares. I put the AE first against gains not qualifying for entrepreneurs relief and the remaining AE against the entrepreneurs gains (lease and business disposals).
(c) VAT – they are not required to register as taxable supplies (standard and zero-rated) were less than £73k, but as they were expected to rise voluntary registration was advisable. Advantages and disadvantages of registration were fine.
(d) I ran out of time, but said that POA are due on 31 Jan and 31 July based on 50% of the prior year’s IT liability. A claim could be made to reduce these, but… (ran out of time here).
Q5 – did not do.
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@wiz7279 said:
come on guys stop complaining now you should have studied hard earlier…..you should have read the whole finance act thoroughly before passing this exam…do you really think you can become an affiliate with just putting a miserable effort……..grow up…..There is a term for idiots like you making such crass comments about other students who struggled with this exam: COMPLETE W*NKER!
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@kdsgreenmachine
i just want to say thank you because i pretty much wrecked my exam overall and u just confirmed that i havent done it as much. seriously thanks man
btw i messed up q2 a the 18 marks part. panic took over me i guess was expecting a better question with tax treatments of individuals and such really didnt have a chance there.
@cimafan said:
There is a term for idiots like you making such crass comments about other students who struggled with this exam: COMPLETE W*NKER!Well said cimafan ! Some people are so selfish. Obviously we tried to give our 100 percent but paper was such a crap. No one can deny
Kds green machine I had balancing allowance in question 1 because . SSE wasn’t available . It wasn’t a trading company .there was no capital allowances that’s why tool showed zero
When I opened the paper and started Q2, I nearly cried. It was tough and Q1 and 2 were very vague. The choice of q’s in Section B was tough too! I mean, what a choice! really spoiled for choice (not!). Panic too over and did mess up Q1 and Q2 in some parts. I did expect a more broken down set of requirements.
Hoping for 50! Good luck everyone! This was a tough paper, sat it in June and that was much more reasonable! Wish I passed it then….
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