• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Q#2 Of June 2015

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Q#2 Of June 2015

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by Ema.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 14, 2015 at 11:54 pm #282430
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    Hi sir,
    https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f6/exampapers/uk/F6UK-2015-jun-a.pdf

    In this Answer in the working of CLT:
    I am not clear with the point IHT liable at nil %
    from where 292,000 working came
    and in NRB working (husband) y are we taking 325,000 instead of 300,000 mentioned in the question.

    November 15, 2015 at 9:20 am #282485
    lakshmana iyer krishnan
    Member
    • Topics: 14
    • Replies: 46
    • ☆☆

    IHT liable at Nil % refers to Nil Rate Band of 325K.
    In this case CLT was 620K. One annual exemption of current tax year of 3K is available. Therefore net CLT = 617K less Nil Rate Band of 325K = 292K is the immediately taxable value of the CLT.

    November 15, 2015 at 9:23 am #282487
    lakshmana iyer krishnan
    Member
    • Topics: 14
    • Replies: 46
    • ☆☆

    The rule is, whenever unutilised Nil Rate Band is calculated, latest threshold of Nil Rate Band is adopted, which is 325K. The 300K given in the question is just to confuse the student.

    November 15, 2015 at 10:48 am #282513
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    Thank you lakshmana… 🙂

    November 16, 2015 at 11:40 am #282482
    lakshmana iyer krishnan
    Member
    • Topics: 14
    • Replies: 46
    • ☆☆

    Dear ema,
    IHT liability at nil % refers to Nil Rate Band. For every individual upto 325K of estate is exempt from IHT. If spouse has not used this amount fully, then the balance accrues to the living spouse. So whenever you give a CLT, 325K and annual exemption if avilable can be deducted, and on the excess amount you have to pay tax immediately at 20%, which is called life time tax.

    The working for 292K is as below.
    The CLT was 620K. One annual exemption only is available, since the PET given earlier to CLT has taken the AE for previous year. (AE is carried forward for one year and in most problems it works out 3K+3K = 6,000).

    The taxable CLT is thus 620K less Annual exemption of 3K = 617K less 325 Nil Rate Band (NRB) = 292K.

    Normally tax tutor don’t want students to answer queries here. Since you helped me previously, I am pitching in with whatever I can.

    November 16, 2015 at 1:54 pm #282853
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    I already understood the concept earlier after those point highlighted by you…. thanks for your benevolence…

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in