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

Yes Shah thats it Q1- to Fiordi or something in the country of Astro something. The other thing i Just remembered. The transfer to the discretionary trust was eligible for gift relief for CGT as there was an immediate charge to IHT and it was a chargeable lifetime transfer

J the foreign sale of components i thought it was talking more along the line of transfer pricing??? I said tax evasion and adv company must adj TTP Maybe im wrong.

Can anyone remember the actual questions asked in Q5 apart from PSC?

I did not see the 20% company to be a Consortia because from memory another company held 80% interest on it and should not be more than 75%… so just said those losses could not be relieved…anyway let’s hope God will help us to pass. Good luck to all!

If 2 companys own more than 75% and own 5% each its a consortium therefore Eagle was a consortium i think.

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

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.

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!

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???

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 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!

https://www.pqaccountant.com/pmag-FFFF00500180026B02171957.html

P6
A bit long but overall OK. Q1 and Q3 were talked of as ‘life savers’. As always time management can be the ‘killer’ in these optional papers.

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 🙁

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.