Paper F6 Dec 2010 exam was … Post your comments here

The car was limited to £80,000, as its value was £92,000. I’m actually quite surprised that so many people are saying that question 4 was so difficult! It was a simple matter of taking the lease cost for employee, minusing extra tax on £26,000 and NICs too and the opposite for employer- ie cost of lease, minus 28% saving on lease costs (eligible expense) plus the NICs 1A (employers pay on benefits etc) I suspect that those people taking F9 would have found this question easy, as it is very similar to a lease/buy decision.
Also- the ventilations system got AIA but was then transfered to SR pool, not main pool.
Also- cost of the house was the rent paid by the employer, not the annual value, as this was higher.
Also- which FII to use for PCTCT was tricky…
Also- the death of the mother- was this then rolled over (ie considered as if bought at mothers buying price) or no roll over relief avail?
Any other points or observations post it here.
All in all, fair, but will catch out any complacent students.

did the ventilation system get FYA on the 12000 remaining after AIA or just wda? i thought most was OK thought VAT would be ten easy marks but proved otherwise! struggled with q4 and 5 really

i just ran out of time! answered Q2 first and it sucked all the time out of me! i was being very specific and was mentioning everything but then i realized time is running out so i started hurrying! left 8 marks from Q1 and couldnt answer Q4 at all! i knew i could do it just needed time…which wasnt there.
and the max car list price allowable is 80000…

well hope everyone does well and pray that i pass :'(

but it said that the ventillation was included in the building….therefore shudnt it have remained in the general pool???

this paper was fair compared to the pilot paper
really didn’t feel good too
anyway
many thanks to opentuition and for their hard work

@aleen same applies here when the exams were over everybody was asking me how did I do I told them seriously I think I should start studying for June exams now.

This was the worst paper I have ever had! Planning to get max 10 marks :).

I sat the UK version an found it really difficult, i sat CAT 9 in June an the difference is amazing. Questions were totally different to expected.Fingers crossed i did enough

thought it wasn’t so good. q 5 got totally wrong and q2. got v confused were the 2 asscoaiatd companies?

Q5 was sole trader. it stated not to waste PA however i thought if you offset losses in current & preceding year all was wasted is this correct?
Q3 with the disposal for the company of the land – there was land levelling costs & only part was disposed when is indexation relieved in this case? Thanks

Both the cost of land and leveling happened at the same time April as I remember. So I applied the indexation allowance to both of them.

For sole trader I first time hear that chargeable gains are also included in loss calculation. In all 3 years I relived the loss only to the trading income so that not all PA was wasted.

that exam was hard

the paper was definitely a hard one, and I PRAY to score over 50 points as I won’t survive the nightmare of studying again for this exam. Now, here’s what I remember about the exam:
Q1. -add salaries + the bonus- pension fund contribution, workplace nanny- tax exempt, the vauchers from the second workplace were not exempt,right? the gym benefit from the first job was not exempt, but the one (gym) provided solely to the workers is exempt? I also think there was a mobile phone there which was also exempt? Also, I think that only the taxable income was required, not the tax liability so did not calculated. I was also going to miss the PA for bit, went back to subtract it 🙂
the PAYE question sucked big time… are you kidding me… I refuse to memorize the crap about PAYE….
Question 5- I did not do well on that one! I relived the loss against the past 3 years’ TOTAL income. You can’t specify whether you can relieve it against trading or total, could you? so I got something like 1,100 unrelieved loss. and also I think for 05/06 there was no way to relieve losses?
did not know what to write on b). Just wrote that you could relieve the net capital gain against the PA and Annual allowance if loss relief is not claimed?
Q4- did not like it as well. I wrote that for the employee it is better to receive the car from the company as otherwise it will be charged additional income tax+NIC tax and at the same time pay for the lease itself. In both cases the company pays NIC Clas1a at 12.8%, and in both cases the taxable income for the company is lower because of the lease/bonus exepense. So, I’m not quite sure which one is better for the company. I did not have time to do precise calculations on the add. taxes paid and the taxes saved.
Q3- where does it say how to treat an inherited land?! what the fuck Mr. Examiner! Maybe I used the wrong study text? Because in BPP this one is not explained! I assumed that the gain was held over, so the base cost was the original one.
– the share price was the lower of the average and the quarter-up, something like 4.74 I think. The cost of the shares was calculated by finding the share of the new ordinary shares (using market values).
I was not quite sure how to treat the land leveling and how to index it. I think I indexed 2/5s of the total expenses.
Question 2- the last point about the VAT invoices was crappy as well. Wrote some bullshit, hope to get some points 😀 Otherwise, the input and output VAT was just pure math, or if not- I’ve messed something. About the first part of question 2- this part about branches and subsidiaries was tricky as well. I wrote that by converting to sub, it will lose DTR relief and the tax limits for SCR and marginal relief will be lower so higher taxes are likely to be paid. Also about the associated companies- they were 2, the other was <50% and one was dormant (should not count I think). Then about the dividens- the group dividend I excluded completely, and the other one I grossed and treated as FII (added 42000 to PCTCT). and there was marginal relief I think on the tax liability. I did not calculate PCTCT in the ordinary way (trading profit, then PBI, investment income), I just summed up all the adjustments to get the total. About the capital allowances- one was limited to 3000, another car goes to the main pool, and goes to the special rate pool. The building features got AIA and then 10% for the rest that goes to the SR pool.
My hope is for generous partial credits, I made a lot of mistakes but hope that they will give marks for correct “computational logic”.
If you remember more issues from the exam please share your memories so that we could “decipher” the crappy exam we sat today.
Best Regards,
Lakersbg