P6 UK tips – December 2012 sitting

Kaplan Financial

Corporation tax
– Capital gains groups: NGNL and rollover relief.
– Degrouping charges.
– Overseas aspects: branch vs sub/CFCs/transfer pricing.
Capital gains
– Reliefs: Rollover, holdover, gift, PPR and letting.
Inheritance tax
– Lifetime gifts.
– Valuation of shares.
– Death estate computation.
Income tax
– Sole traders opening year rules, trading losses.
– Self assessment admin: payment by instalment, new penalty regime.
– Income tax comps at marginal rates, possible overseas income.
VAT
– Partial exemption.
– Land and buildings.
– Registration.

BPP

The exam will comprise two compulsory questions within Section A which will both be of a case study style and will cover between 50 %-70% of the marks. One of these questions will focus on personal tax issues and the other will focus on corporate tax issues. Both will require a professional document to be constructed for which professional skills marks will be awarded.
Section B will comprise three questions of which only two are to be answered. These will be in a more succinct style and will examine any areas of the syllabus.
The unincorporated business is always a popular topic at P6.

First intuition

Business property relief.
Use of second spouse nil rate band.
Related property.
Groups of companies, trading and capital losses.
Double tax relief for companies.
De-grouping charges.
Incorporation relief.
Furnished holiday lets.
VAT partial exemption.
Appeals and the four track tribunal system.
Benefits in kind or extra salary, income tax and national insurance implications.

LCA

A company with UK and foreign subsidiaries; double tax and group relief; controlled foreign companies and branches. VAT on imports and exports.
An individual trader starting to trade after acquiring a business; loss reliefs, reliefs for capital expenditure including VAT; sales of assets to provide funds for business development. Cash and annual accounting.
Gifts of shares and share buybacks.
Employment tax issues including share schemes.
Gifts, inheritance tax and overseas issues.
IR35.

LSBF

IHT with the death estate including BPR, APR and valuation rules. Transfer of unused nil rate band between spouses. Changing the will after a person is dead. Instalment option for paying IHT.
A big company question regarding a company selling its trade and assets.
Controlled foreign companies and transfer pricing.
Sole trader starting to trade with opening year rules, choice of accounting date, capital allowances and maybe trading losses at the beginning of the trading cycle.
Maybe Rules for personal service companies
Incorporation of a business including incorporation relief and the election to transfer plant and machinery at TWDV.
Self assessment for individuals, consequences of filing the tax return late and paying the balancing payment late.
Ethics and deliberate tax defaulters.

best of luck with exam!
ansi