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konain03
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If civil partners elected to transfer PA (personal allowance), the transferring partner has to make a fixed transfer of 1260 even if they have unused PA of less than 1260, so the transferring partner may incur some tax too
My question is, if the partner that the PA has been transferred to has income tax liability of less than 252 then can the excess be transferred back to the initial partner who is still incurring tax? Or is it then wasted?
Example: If partner A has total income of £13000 and partner B has a total income of £11800, and they have elected to transfer PA (from B to A) what is the Income tax liability for partner B?
Tax Tutor
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No – the excess cannot be transferred back – as you state above it is a fixed transfer of £1260 from the transferor and most importantly as per the study notes and lectures the transfer is in the form of a tax credit to the transferee which can only reduce the tax liability, it cannot create a repayment!
You do the calculations in your example to determine whether the election would actually be worthwhile!
hafiza2323
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Sir i have f5 and f6 in amonth i want to.ask.how to remember Tx as i forget it all and i have booked 2 exams so no way back kindly give me tips and solution as theirnis no way back now
Tax Tutor
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There is no magic wand that can be waived to suddenly make you remember things and like any professional exam, success is built upon hard work but also the correct approach!
So firstly you have to put in the hours of study effort working through the OT lectures in conjunction with the OT Study Notes and doing the set work at the end of each chapter. Most of this work involves you working through examples and it is ONLY by working examples and questions that the knowledge and the ability to apply that knowledge will be attained.
You cannot however work questions UNTIL the study effort has firstly gone in!
AFTER each Tax has been studied you then work questions from an Exam Kit prepared by one of the ACCA approved providers – you must ensure that you get the relevant up to date text – for the June 2022 exam through to March 2023 that is the FA 2021 edition.
When all of the Taxes have been studied in this way you return to the Exam Kit to work / rework the past exam questions.
There is no quick fix!
konain03
Tax Tutor
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