ATXPOLL – Paper P6 June 2010 exam was … Post your comments here

As far as I can remember... the yearly cost of the flat minus contributions and then an additional taxable benefit of the value of the flat (as it was over 75k)x the official interest rate

The option of the company flat made him a loss after tax. I think i made the taxable cost to him of the flat of being about 10k but he would only take home around £9900 of extra salary after tax so he would lose about £150 a year. The extra salary of £15k was his regardless of the option chosen, maybe you missed this? I think i worked out he would need about an extra £3k of salary to make the flat break even.

@umar219 said:
i did 12 marks question of IHT on the assumption as gift with reservation...how much i could gain marks on the basis of this assumption...plzz kindly commnuicate

There was a line specifically in the question that said that it was not a gift with reservation in the email from your manager -
"You should calculate the inheritance tax for each of the 12 possible situations on the property only,
assuming that Paprikash does not use the property after the date of the gift." I.e. he will have no further benefit from it therefore it would not be treated as a gift with reservation. They may give you marks for mentioning it though.

@skipfulokittens said:
The option of the company flat made him a loss after tax. I think i made the taxable cost to him of the flat of being about 10k but he would only take home around £9900 of extra salary after tax so he would lose about £150 a year. The extra salary of £15k was his regardless of the option chosen, maybe you missed this? I think i worked out he would need about an extra £3k of salary to make the flat break even.

Just read the question again and i didn't add the cost of the petrol into the flat scenario so he would lose even more money as he was driving to and from Manchester every week regardless of whether he stayed with his aunt or in the co flat, oh well!

when the lectures and notes of p6 will be available for december 2010 attempt

Personally found the paper very tough and not fair...