ATX*** P6 December 2013 Exam was.. Post your comments ***

A consortium company cannot be a member of a 75% loss group.

yep consortium relief available for 3 months

In terms of the unused nil rate band by the husband ... is not the percentage unused that is added to the wifes nil rate band. So 140000 of the husbands nil rate band was unused and the nil rate band available on his death was 300000 ( July 2007) So 140000/300000 = 47% So add 152750 ( 325000 * 47%) to the wifes nil rate band of 325000 = 477750 nil rate band available on the wifes death.

yes Eagle ltd was a consortium owned company. Why was it only 3 months of consortium loss---need to pass?

Lou - yes your right I mentioned transfer pricing as well on the foreign components - adjust for an arms length price in the taxation calculation etc. Q5 - Was split into 2 parts I think Part 2 - asked you about IR35 and then asked you to calculate his deemed employment income with IR35 Part 1 - was something like furnished property commercial rule and then asked you to calculate including the furnished property rule - I missed most of this out!

I talked about Transfer pricing as well and the fact the sales went to an non qualifying territory.

Anyone who did q5.... can they remember how much they saved? I think I got about 33000 Also 3 marks for stating the conditions of a fhl alls I can think of uts that it's situated in eea has to be avail to let for 210 days out of year and must actually be let for 105 days. Surely that's not 3 marks???

Q2 - I think Eagle was not consortium as no Company should own more than 75% in consortia and other company have owned it for 80% If they owned less than 75% it would have been a consortortia. What i am not sure is the treatment of 75% other subsidiary. shouldn't be there a restriction on its B/F Losses as a result of Brawn Ltd selling it within 3 months of purchasing it? I removed both of them from the calculation, I am treatment of Eagle but not so sure about the restriction.

Also 3 marks for stating the conditions of a fhl alls I can think of uts that it’s situated in eea has to be avail to let for 210 days out of year and must actually be let for 105 days. Surely that’s not 3 marks??? CORRECT 3 marks for you, dont forget entrepreneur relief and gift reilef are also available on FHL

I remember that consortium 'COMPANY' cannot be a part of 75% loss group, but what about a Consortium 'MEMBER' ?

I dont think there was any consortia in Q2. I remember reading that consortia members can have : individually atleast hold 5% but < 75% but together all the consortia members can hold atleast 75%. So i thought the other company outside the group was holding individually more than 75%! Final paper and my 3rd attempt....Hoping for pass though i was not able to finish the paper. The examiner must seriously think about the length of questions for PART B as to read,understand,think,plan and write do take a lot more than 30 mins for 20 marks questions. Wishing everyone advance Happy Holidays , Merry X'mas and Happy New Year!

Does anyone remember the individual questions from Question 3 and 4???

Anyone who did question 5 can you remember how much saving you had roughly? Also Q1 most people say this was a lifesaver..... Q1 was the worst for me. If i can remember rightly the IR had to be restricted because they were given Cash also. Then if she gifted them to her son did you have to apportion the base cost because she was not giving him all her shares? She could then claim gift relief?

Questions are up on ACCA website https://www.accaglobal.co.uk/content/dam/acca/global/PDF-students/acca/p6/exampapers/uk/p6uk-2013-dec-q.pdf The more I look at the questions, the less confident I am of passing. Question 1- I still dont know what was required for the capital allowances question?!?! I did 'ok' workings on the rest but my summary on whether to disclaim incorporation relief was muddled and rushed and wasnt very conclusive. Question 2- (a) was quite basic, and should have picked a few marks up. No AEA etc, but surely everyone would have picked them marks up (b) was a mess for me. Not entirely sure if I wrote anything for 'close companies' due to time pressure. Wrote about three lines on transfer pricing rules, but only basic points, i.e. transactions should be at arms length (c) very rushed, and did bullet points. Even then got the facts wrong, I wrote 11 estimated payments and a balancing payment at the end. Did get 1.35m turnover correct but that was about it!!!! Rubbish really Question 3- (a) some of my working should have been good here. But forgot to use husbands unused NRB so lost marks there (b) only picked up a few marks here. Wasnt particuarly strong on EIS. Stated that the gain will be frozen until subsequent sale of shares. (c) Really poor answer! Stated that there would be restrictions if some benefit is retained. And that only exceptions were a change in circumstances, i.e. donor becomes ill. Did touch on commercial rent as well Questions 5, (a) (i) conditions were the only part of whole exam I was 100% sure on!!! (ii) did ok here. Had a mindblock and decided to calculate NIC though as FHL treated as a 'trade'! I know this is incorrect though now, stupid error! (b) Explained about basic employee/self-employed assumptions. Picked up a few marks on part b but didnt get completely correct. Just remembered 5% statutory and the other payments must be subtracted from the income. All in all, I thought I may have scraped a pass until I just reviewed the paper! Definite fail for me, retake in June :(

After I left the exam room I felt I scrapped a 50%, but now, after reading all those comments I know I failed miserable! Many of you all stated that you choose question 5, but I didn't get a sense that you did part b on the Personal Service Company. I attempted that section of number five first, by the time I started section A, the lady said "all pens down, the exam has ended!" just my luck!! This is my last exam to complete this ACCA, I trust I can get this over with!!!

I remember clearly about question 2, that one of the mistakes made by the assistant is she/he included a loss relief for one of the group members which the parent had a 20% holding. I remember clearly that this could not be included as that member would not form part of the loss relief group. The parent would have to have at least 75% shareholding in that company for a loss to be relieved to it. In addition, the degrouping charge should have been added to the proceeds (consideration) and the gain recalculated. The overseas entertainment should have been included, as is the UK entertainment that's excluded (tricky part by the examiner). There was a funny part in one of the sections in that question about one of the group members selling to an overseas member. The point here I thought had to do with both VAT and Double taxation relief. The examiner stated that the member of the group was in some country where there were no tax treaty....therefore they would not be able to claim double taxation relief, and in addition the items sold to that member had to be "zero rated" for VAT puposes, because the member was outside of the EEA.

Can anyone remember what they did with the wear and tear allowance in Q5???? I Took 10% of the income but disallowed the repairs did anyone else do the same/?

i took wear and tear 10% but from rent you ll have to take off the council rates then take 10%.. i am not sure what gonna happen to me but its 5050..

Guys complete the Exams feedback survey ASAP (last date 16th Dec) and tell them HOW BAD THIS PAPER WAS !! From what i heard, they do consider this in the overall marking process. PLEASE PLEASE PLEASE Tell them how tough this paper was and how little time was allocated to it. Good Luck