*** P6 June 2012 Exam was … Comments and Instant Poll ***

Shocker. Had no idea how to approach q1. Just hope my waffling scores marks for the rest.

i thought it was ok, could have been much worse. but I did find Q1 a bit tricky, the requirements werent all that clear to me.

hoping for 50%

again, very time pressured exam, need to keep an eye on time if you want to have a chance at every question, which i did…

good luck to all!

Q1 – IHT and CGT issues – 21 marks for memorandum and 6 marks for a letter and 4 prof marks

Q2 – CT – allocation of losses, calculation of gain on disposal of an asset, sale of patent rights, VAT on services and SSE matter – overall 33 marks (plus some admin stuff too) – 33 marks in total

Q 3 – VAT (didnt do this)

Q4 – redundancy payements, NIC 4 workings and workings for suggesting if to invest in VCT or pension (16 marks in total)

Q5 – large company CT payments explanation, R&D and machinery – discuss the exemptions/credits available (16 marks in total) – there was also a requirement for 3 marks, didnt understand what it was about, so left it

@smrtka2 said:
Q1 – IHT and CGT issues – 21 + 3 professional marks for memorandum and 6 +1 professional marks for a letter

Q2 – CT – allocation of losses, calculation of gain on disposal of an asset, sale of patent rights , VAT on services and SSE matter – overall 33 marks (plus some admin stuff too) – 33 marks in total

Q 3 – VAT (didnt do this) -(18 marks in total)

Q4 – redundancy payements (3 marks), NIC 4 workings (7 marks) and workings for suggesting if to invest in VCT or pension (8 marks) (18 marks in total)

Q5 – large company CT payments explanation, R&D and machinery – discuss the exemptions/credits available (18 marks in total) – there was also a requirement for 3 marks, didnt understand what it was about, so left it

fixed some of it for you 🙂

@jensealey said:
Nightmare paper… especially qu2!! I think losses are my weakness but all the other bits were a bit odd too!

I did qu 3 and 4 on the optionals… didnt get what the 3 part A VAT bit was getting at really? Did anyone else get this part of the questions!

Good luck to all!! Alll i want is a 50 but fear i will be a bit off it 🙁

I did it as going concern exemption… Am I right?

I though the paper was ok, there were lots of easy marks to get, which I did first and then tackled the hard stuff, which I know I made a mess of the IHT calculations in Q1, also very timed pressured therefore it becomes hard but then its not designed to be easy. It was a re-sit for me so I’m hoping for a pass 🙂

Q1 – Hard, Tricky but not very lengthy.
Q2 – Easy But Very Lengthy.
Q3 – Didn’t Attempt
Q4 – Easy if you have knowledge of F6 (Excluding VCT)
Q5 – Very Easy if you have learnt administration of companies and corporation tax dates.

I have first attempted Q2 and then moved to Q1 and then to Q4 and then Q5. Overall paper was not difficult as i have seen the last attempt exam questions in BPP Kit.

Hope We All Will Pass. May Allah Help and Bless Us All. 🙂 Best of luck to every one for results.

Q1 I didn’t give DTR because there was a DT treaty in place. I said no UK IHT on the overseas villa either way as per the treaty.

Q2 There were 6 associate companies but I think 2 of them were less than 75% so not in the loss group. I offset some loss against one company to take it down to small, max poss against the consortium then the rest carried back saving some tax at previous year’s marginal rate of 29.75%. Does any of that sound right?

Q3 The VAT was on capital goods scheme. Claimed some input VAT on purchase then made repayments in subsequent years as partial VAT % went down then sold building after 3 years so had to repay most of it.

Q4 NIC bit was on sharing partnership profits. Lots of time apportioning as partnership accounts date were Dec and new partner joined in June.

There were bits I know I got wrong but overall fairly confident. It was a retake but I came out feeling much happier than I did in Dec.

It was a hard exam but this is a professional paper so that’s expected. However it was a ‘fair’ exam I thought, unlike the P4 paper earlier in the week which was so needlessly convoluted and tricksy it – not to be too hyperbolic! – undermined ACCA’s credibility a little bit.

Thought q3 was ok apart from the VAT bit which i didn’t even attempt. ( was that q3? or q2?)
But IHT tax and Capital Gains are fairly bog standard exam questions and there’s no reason not to have been prepared.

Not sure if i passed but a lot more hopeful than I am for p4!

It was hard! Did Q1,2,3 and 4.

Q1 – I included DTR on the Villa, but then what do I know, I forgot to include NRB in lifetime death tax for both Villa and Farm, which makes my comparison of the effect of each gift a bit flawed. Thinking about it (which I felt was impossible in the exam!), I should have compared the effect based on the whole estate (the value was given at £3m I think and I didn’t even use it). I tried to compare each asset on its own. I reduced my IHT by taper relief 5 yrs too.

Q2 – I made it 6 Associates, with 3 in the group relief group, the loss I relieved against the consortium company £110,000 and then group relief against one of the companies in the marginal rate, then the rest against Janus’s current year chargeable gain then carried back against previous yr at 27.5%, but thinking about it it probably should have been 29.75%.
I also said there were 2 gains groups, can you have more than 1? Then on the sale of the building, I said it was a degrouping charge and explained this, as it was within 6 yrs of the initial NGNL tfr.

Q3 – I did this question last and struggled a bit – Can’t remember all of it. The different lease options. I know I used the wrong % in the car benefit calc, should have been 18% (diesel car) +9%, I used 10% + 9%. Not sure where i got 10%!

Q4 – Redundancy treatment – talked about statutory, ex gratia to £30,000 and contractual.
NI – worked out profit share at £45150, so the class 4’s were at 9% and £2,675 were at 2%.

The last bit – VCT and pension, using T income of 120,000. VCT no PA, tax liability reduced by £10800 (£36000×30%) and pension PA was available, extended bRB. Think pension method was slightly more beneficial.

Like I said didn’t get time to think about any of this in the exam,

Sorry for going on

question about the VAT of Capital Goods Scheme in part three how to calculate this as it was never tested befor

Q3VAT, is that about TOGC?
Q1 tricky
Q4 easy
Q2 ok, but I did not have enough time to finish the calculation