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Overall a pretty easy paper though it consume very much time.
Trading losses should be offset against current year then with current year chargeable gains (restricting to the amount of personal allowance)
Then carry back remaining balance which left profits with 9440 of the personal allowance limit.
I had to leave the income tax bit on the losses question but got the rest
I didn’t think it was a too bad paper in all, distinct lack of income tax I thought, lots of capital gains. Quite balanced and some Easy marks for describing things, patent box, vat elements etc..
having said that, I bet I still fail. The time pressure never helps
I totally forgot to set off the loss vs chargeable gains and carried it back hopefully there will still be some marks there. It was a decent paper but it was deceiving as there was a lot of potential trip ups hopefully I’ve done enough for the pass. Some of the theory questions where give away marks
Had a mare with calc in q1 studied more for group reliefs than sole trader. Hopefully I nailed the ethics, presentation, Vat, iht and cg parts to drag me up to a pass on that question.
Question 2 Was a bit of a complex mess. I said the loss couldn’t be brought forward cos the nature of trade has changed. I also rolled over relief on the new factory bought as in cg group but the smaller company could not have the gain as was only 65%. Again hoping patent box and Vat saved me
Question 3 was hopefully my banker to drag me up on the various iht and cg.
Question 4 had a bit of a mare with the dates but think I did well on the uk residency test and remittance basis.
Overall it’s going to be tight. Pray this is a pass as I can’t face this again.
Also did anyone do anything with the loss in the corp tax I assumed change if trade and ownership
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I think since they mentioned asap option it was supposed to carried back first.
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yeah, it was pre-entry losses and since there was ‘assumed’ change of trade, those 20k losses were wasted.
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In q5 part a was corporation tax return and the penalty for it- it was for 4 marks.
Part b was csop n sip and income tax and cgt implications while purchasing n selling-9 marks.
Part c was whether it was a cfc n any exemption is available or not- 3 marks and assuming its a cfc, what is the cfc charge- 3 marks.Did anyone do Q4 I thought it was going to be easy but I think I messed it up Change of Accounting Date 16 months.
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Basis of assessment is never easy 😛
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Q1 – I think went well, I forgot to do the summary of balancing payments and payments on account for following years, so quickly done it with minutes to go hopefully scraped at least one extra mark.
I really don’t remember reading about restriction of £50,000 for relieves, I thought this was only for relief of pensions so I lost out on some marks as I didn’t even attempt to comment and I offset all losses and didn’t restrict.
Q2 – I think I gave this a fair attempt, except for some reason I decided to offset 10% of the loss as the new trade was 90% of profits.
Gave a decent answer for the Capital Goods Scheme and Patent Box parts of the question, hopefully this makes up for where I lacked in the larger part of the question.
Q3 – I only chose this as I thought it was easier than Q4.
Q5 – I remember giving this a decent attempt and felt confident about it, but now I can’t even remember what the question was about.
Its all a blur now, I really dread the thought of having to resit.
I did actually expect the exam to be more complex, it wasn’t very technical
Q1 – I said that the loss b/fwd from bond couldn’t be offset as there had been a change in the nature and conduct of trade, I didn’t allow the 10% as I hadn’t read anything about this. I said that he had claimed too much on the capital allowances as the AIA had to be decided between the number of associates. I also split the upper and lower limits by three. For some reason I split the AIA by two as I was thinking about groups even though I split the limits by three! I did originally split the AIA by 3 so I’m hoping the marker will give me credit for this.
How did everyone calculate the roll over relief? I think I got a gain of £40,000 that was immediately chargeable – the sale proceeds not re-invested £390,000 less £350,000.
I said that ungar would benefit from the patent profit scheme and put some points down for the capital goods scheme so fingers crossed I’ve picked up some marks there.
Q2 – got slightly confused with this one under exam pressure. I restricted the loss as I remember reading something about it but when I got home I read that it is restricted to £50,000 against other income so effectively the capital gain. I forgot to take the capital gain into consideration when carrying back the loss!!!
I also calculated the payments on account based on the income tax figures in the question, did anyone else do this?
Q3 – said that the donation to charity wasn’t 10% so needed to be increased.
Benefits of making lifetime gifts such as gifting appreciating assets and taper relief. Wasn’t really sure what else there was to say!
Deed of variation to avoid potentially being taxed twice if he dies within 7 yes, didn’t have much time to put any points on this question.
I said about the negligible value claims on the fall in value of quoted shares.
Q5 – penalty £100 and £300 / should have filed two returns, 12 month period and 4 month period.
CSOP available to all employees at £30,000 maximum. Forgot to mention that they couldn’t own more than 30%of company!! Said there would be no income tax but would be capital gains tax.
SIP said max £3,000 but couldn’t remember if this was per year or employee!
CFC – I put that they would be taxed at 23%
Really time pressured exam but fingers crossed I’ve enough
I think for the gift of the house you had to talk about Raymer not living in the house and maybe the potential for PPR if his adult son did,
It was not a CFC even though I included the chargeable gain in the calc which after reading the notes i realised i shouldnt have.
negligible value claim talked about on the CGT, and also gift off the shares take the loss now and then on death can use losses to carry back 3 years on a LIFO basis,
With the AIA i had divided it by 2 for the six months but forgot to mention it had to be split by number of associates but hopefully will still get the marks as it depends on marginal tax rates i would of thought? WDA therefore also on this purchase
IHT charity legacy from 60,000 to 78,000? of the 1m to get 36% tax
Chargeable gain of 40,000 left from the rollover as these where proceeds not reinvested,
Trading losses wasted change of ownership change of trade.Capital goods scheme on premises for 400k but not the machinery as this is not covered by the scheme. Purchase price greater than 250k spread over 10 years
Pre registration input vat 4 years and 6 months for services i mentioned for business expenditure
All in all alot of tax planning in the paper but not too bad my Q1 was a bit shabby but hopefully the others will carry me through
Very time pressured due to a bunch of confusing points/statements throughout the questions. Fingers crossed!
Guys- anyone knows when the answers will be published by Kaplan or bop or ACCA own? Txs
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@oldc02 said:
Q1 – I said that the loss b/fwd from bond couldn’t be offset as there had been a change in the nature and conduct of trade, I didn’t allow the 10% as I hadn’t read anything about this. I said that he had claimed too much on the capital allowances as the AIA had to be decided between the number of associates. I also split the upper and lower limits by three. For some reason I split the AIA by two as I was thinking about groups even though I split the limits by three! I did originally split the AIA by 3 so I’m hoping the marker will give me credit for this.How did everyone calculate the roll over relief? I think I got a gain of £40,000 that was immediately chargeable – the sale proceeds not re-invested £390,000 less £350,000.
I said that ungar would benefit from the patent profit scheme and put some points down for the capital goods scheme so fingers crossed I’ve picked up some marks there.
Q2 – got slightly confused with this one under exam pressure. I restricted the loss as I remember reading something about it but when I got home I read that it is restricted to £50,000 against other income so effectively the capital gain. I forgot to take the capital gain into consideration when carrying back the loss!!!
I also calculated the payments on account based on the income tax figures in the question, did anyone else do this?
Q3 – said that the donation to charity wasn’t 10% so needed to be increased.
Benefits of making lifetime gifts such as gifting appreciating assets and taper relief. Wasn’t really sure what else there was to say!
Deed of variation to avoid potentially being taxed twice if he dies within 7 yes, didn’t have much time to put any points on this question.
I said about the negligible value claims on the fall in value of quoted shares.
Q5 – penalty £100 and £300 / should have filed two returns, 12 month period and 4 month period.
CSOP available to all employees at £30,000 maximum. Forgot to mention that they couldn’t own more than 30%of company!! Said there would be no income tax but would be capital gains tax.
SIP said max £3,000 but couldn’t remember if this was per year or employee!
CFC – I put that they would be taxed at 23%
Really time pressured exam but fingers crossed I’ve enough
I think AIA should have been split by 2 as it was only 6 out of 12 months but not by 3 as even though its shared you can choose the split? So I think you got that right even if for the wrong reasons! I thought there were 2 associates that year though as one was acquired after year end?
I got the same as you for the rollover figures.
I also forgot about the capital gain and carried back the loss. I remembered something about the £50000 limit thanks to the hint in the question but dont think I applied it right 🙁
Didnt do any POAs… were we meant to?
I thought that exam had gone ok but reading everyone elses comments has made me realise I did so much wrong… eek!!
Yes I agree with you Bethcarrol The AIA should be Prorated according to the accounting period! It is not to be split amongst the group! Also the excess of investing more than the Ul for AIA gets WDA 18%
I totally ignored the rollover even after the examiner emphasised this in the question????????
I don’t think the £50000 limit apples to companies, just sole traders!I forgot about the chargeable gains I calculated in q1 when dealing with the losses! I’m not sure you can preserve Personal allowance when using losses for individuals!
All the best Guys! I’m sure we all did our within the max time available.
HAPPY XMAS TO YOU ALL ????Oh I split the aia by two for the six months and then by the number of associates which wrong, I knew they only got one between them but for some reason forgot that it could be divided however they choose.
I thought that the 3rd associate was acquired April 2014? Therefore would have been an associate in the six months to 30 September 2014? Maybe I misread the question.
The £50,000 limit was for question 2 but I had no idea what to do with it!
No you can’t preserve the personal allowance.
In question 2 did anyone else take the rental income into account of £5,000 each year? The loss has to be carried back on a fifo basis so does this mean we should have first offset it against rental income in 2011/12 then income in 2012/13 then 2013/17? I thought this was quite misleading as it didn’t state when the rental income started.
On the UK paper there was a bit about the payments on account post 31 January 2015.
On question 2 were we supposed to calculate the 10% for the charity on the estate before the house and cash to the daughters of £1m or include everything and calculate it on the £2m? My mind went totally blank! Also is this the figure before the nrb? As I forgot to put the nrb into my calculation!!!
Wasn’t the estate only 1m for the IHT? 500 house, 440 shares and 60k charity?
Reading this thread isn’t filling me with much hope now lol
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For taxable estate even i took only the assets remaining and reduced it by the nrb at death ?
@Carl29, you are right. The estate was for 1m.
Anyway, the exam was okay but I realised I made some mistake.F6(MYS) Variant went ok. I’m keeping my fingers and my TOES crossed, and whatever else I can cross. Anyways:-
Dear Open Tuition,
Please open up the P3 instant poll exam comments. That was a tough one. I just hope everything goes well and as long as I pass, that’s more than enough for me. Anyways, well done to those who found the P6 paper easy and OK, and to those who found it extreme, just hope for the best and pray hard. That’s all it is, and that’s all it will ever be.
Thank you so much OT for providing these resources, I must say this is GOD-SENT!
The amount of time and effort you guys put in, and with all the great lecturers who promptly reply, GUYS I MUST SAY, OR I HAVE TO SAY (DOUBLE CAPS LOCK) THANK YOU SO MUCH !Cheers and Merry Christmas and a Happy New Year 2015 to everyone all the way here from Penang, Malaysia ——> G’TOWN CITY!
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