*** P6 June 2015 Exam was.. Instant Poll and comments ***

@anuj428 said:
It was the net cost to cate of hiring the employee.
She was earning (£90,000 + Dividends) £120,000 and therefore her PA was abated. Once she hires someone her profits fall and thus she gets her PA so effectively she’ll pay less tax and this is a tax saving.

So i put thar the net cost should be cost of hiring the employee less tax saving to the business less the tax saving for Cate as the Q specifically asked the net cost for Cate for D desgin hiring the temp staff.

Ah, that would make more sense, unfortunately. Looks like I missed quite a few marks in my haste there then 🙁

de grouping charge arises??as transaction was between dormant company and UK company and i think that dormant companies are excluded??and roll over relief was also not available as asset was not used in trading purpose?

@barbs1020 said:
Hey,Hershey,pliz remind me again roughly wat question 4 was about I m getting a horrible feeling I only answered three ?,sorry to stress u

No problem 🙂

Q4- part a was about how many shares King had to sell in order to generate after tax sales proceeds of 30,000.

Part b i think was about lifetime gifts to IIP trust, the effect on cgt and IHT liability.

Part c i think was about why the giff of house would be termed as ‘associated operations’ and why it will increase the IHT liability at his death.

i think this was the whole question do correct me if i am wrong.

Hershey,thank u so much,but wasn’t IIP ON QUESTION 1,about king creating an IIP for his daughter,

@barbs1020 said:
Hershey,thank u so much,but wasn’t IIP ON QUESTION 1,about king creating an IIP for his daughter,

U r welcome 🙂

It was in O4.

@hutchy1978 said:
Her capital gains..
She sold her house.
Some equipment
Can’t remember what else as studying for p2

Oh yeah..

The building was taxable and no relief was available i guess.

The computer equipment was a wasting chattel that was bought and sold for less than 6,000 hence exempt from cgt.

The house was actually in ‘Other matters’ and she sold that on 30th April i.e., after leaving UK, i still wrote it under CGT, and it was again covered by PPR, so whole of it was exempt.

Good luck for P2 🙂

@hershey said:
Yeah it was kind of easy, anything relating to employee is deductible expense from the Income tax, and that NIC on benefit i think was less than 2000, hence i wrote that she did not have to pay.

For the annual tax cost i just calculated the IT liability, didn’t know what he actually meant by ‘tax cost’ 😛

………………………………………………………………………………………………………..

About the NIC 1 secondary, I had deducted the £2000 and had concluded that there was no NIC liability until I read again 2 line up and it stated the dress business had a few other full time employees in different branches.
I went back and corrected it, thank God.
The £2000 is for the whole staff, not just one part-time employee.

@hershey said:
But for Oher employees nothing was mentioned, so i didn’t know how to consider that.

…………………………………………………………………………………………
I got just above £500 NIC1 sec. for the part-timer.
The conpany has only £2,000 in total to deduct off its NIC1 sec. tax liability

Surely, don’t you think the company would have already used the £2,000 reduction on the 6 full-time employees?
On assumption that fultime employee’s salary will be higher than a part-timer, hence higher NIC 1 sec.

@barbs1020 said:
Hey Hershey,it’s me again I m sorry to keep bothering u,I missed out on cgt on equipment I didn’t even see it,that would mean I missed on talking about capital allowances on closing years how many marks do u think I lost on that.

hey no problem 🙂

If you are talking about q1, then the equipment was actually an exempt asset as it was bought and sold for less than 6,000 (wasting chattel), hence i guess only 2 max u will loose.

@emilygarrettiom said:
AE already used up & in 28% band, so 30,000 will represent proceeds after 28% CGT deducted

45x-((45-5)x*28%) = 30,000
45 – (40*28%) = 30,000/x
x = 30,000/45 – (40*28%)
x = 888 shares

CHECK:
888*£45 = £39,960 Proceeds
£888 * (£45-£5) = £35,520 Gain
£35,520 * 28% = £9,946 CGT
£39,960 – £9,946 = £30,014 Net Proceeds after CGT

I can’t remember the exact amounts in the exam so I’ve used £45 as the sales proceeds and £5 as the cost just to provisionally show the formula I used.

That makes sense unfortunately… lost a mark there! I assumed it was SP less cost to give net figure, but the SP is actually funds received… I guess AE will be one mark, using SP – Cost to give CGT Calc will be one mark.. and getting the right figure will be the third mark… 🙁 better not get 49!!

@barbs1020 said:
Thank you so much,I really hope to God u pass,u are very kind

Thank you

Awww, thank you 🙂

I hope so too 😛

But seriously, i hope everyone passes P6 including you :), because this time it was really different paper :/

after long time satisfied from p6 in acca

@hershey said:
The question paper has been released….

I cant see them on the acca website?