Business Tax Exam.

popcornlpw

I deducted the trading loss c/d from 1st 12 months profit

Gianfranco Zola

Yeah, same here. I didn't add the speeding fine back on, which I believe to be a mistake now, but I got adjusted trading profits for the 15 month period at £145,782 - i think

lc1234

You have mostly made my day, seems that most of my answers are the same as the ones quoted here just one more thing did anyone get involved with Overlaps for the partership because it was a new venture, I did not because normally it asks you to state the overlaps clearly.

Also If anyone is interested I have the Data pages for both section 1 & 2 and wrote the questions for each section on them so I can go through it tomorrow after DFS?

Emma1708

Gianfranco Zola wrote: »

Yeah, same here. I didn't add the speeding fine back on, which I believe to be a mistake now, but I got adjusted trading profits for the 15 month period at £145,782 - i think

I got the same profit figure as you

popcornlpw

yeb same here adj trading profit £145782

popcornlpw

No sorry I did not have any overlap for this paper

>Michaela<

Woopsy, I was thick and didnt realise some needed to be taxed at 19% and did it all at 20%, never mind, I knew I had ballsd up on it!

popcornlpw

PCTCT payable for 1st 12 months was £18979

PCTCT payable for 3months was £7176

Has any one have the same?

Sonny_L

yep 145,782

then i apportioned it to 12 and 3 months for the next 2 questions

Then i added on the chargeable gain and deducted the loss b/fwd and 12/15 of the gift aid the gift aid against the 12 month period to arrive at PCTCT for the 12 months.

Think i just deducted gift aid from the 3 month one

I adjusted the limits for the time apportionment and the associate

and calculated corp tax at 19% and 20% for the 12 month period and 20% for all of the 3 month one

unbelievably i used the 12 month PCTCT for the 3 month corp tax calc aswell. I remembered after the exam, what was i thinking?

Oh well. Hopefully the method is sound.

oxongirl78

ref the gift aid...it clearly stated that it was paid out at £100 per month, so you could split it into the 12 month and 3 month periods.

Sorry...nit-picking !!

popcornlpw

I did the last 3 months the PCTCT was x 30%
and less relief of £3491.....

Cortez

GoldenRetreiver wrote: »

Well now its 3pm - on part 2 was it a small company or medium company for tax purposes?

Couldn't see anyone quoting you so assumed this hadn't been answers ... it said medium in the question.

Pigpen

I thought the exam was weird - No share calculations and so this is bound to come up in the personal taxation exam on Friday - I had got really good at them too :laugh: I was so convinced that there should be a marginal relief calculation in there at the end - But my profits for both periods were below the lower limit after allowing for the associated company so I am hopeful this was ok - I hate exams

Gianfranco Zola

I got corporation tax payable as follows:

(104,026 x 6/12) x 19% = 9,882
(104,026 x 6/12) x 20% = 10,403

So £20,285 for the 12 months and I can't remember what I got for the 3 months

popcornlpw

because 300000/2 x3/12=37500...
the "profit" was over 38k

pikeydiva

did anyone calculate PU for the cars in section 1 with partnership??

Cortez

popcornlpw wrote: »

I did the last 3 months the PCTCT was x 30%
and less relief of £3491.....

I did marginal relief for the 3 month period as well but can't remember what my relief figure was. I think after deducting the relief I had around £7k payable?


I didn't deduct the losses from anywhere, completely forgot about that!

I allowed the speeding fine but not sure if that was right. I know you can allow parking fines but the difference didn't click in the exam ... just saw an employee fine and thought it was fine! :blushing:

Emma1708

Actually I didnt get that profit figure, I took the £18100 off so the profit figure I used for the 15 months was £127k ish.

Gianfranco Zola

I think for the second months I had:

145,782 x 3/15 = 29,156
Less: gift aid ( 300)

PCTCT 28,856

'profits'

PCTCT 28,856
dividends 2,500

31,356

then as this was under 37,500 i multtipied the PCTCT by 20% to get corp tax payable of £5,771

Sonny_L

Huge space for the final email wasn't there? I just explained the details of rollover relief, without calculations there wasn't much to say?

Pigpen

Oh I must have got the last 3 months bit wrong then cos my "profits" figure was under the 150000/12 x 3 limit of £37500 - Bummer

craig__2k4

nah i didnt get any marginal reflief figures, i made a note of what i would of done anyway, but my figures werent over the thresh hold, hope this is right!

Cortez

For rollover relief do you have to buy the new building 12 months before/6 months after sale?

ChloeGee

Gianfranco Zola wrote: »

I think for the second months I had:

145,782 x 3/15 = 29,156
Less: gift aid ( 300)

PCTCT 28,856

'profits'

PCTCT 28,856
dividends 2,500

31,356

then as this was under 37,500 i multtipied the PCTCT by 20% to get corp tax payable of £5,771

That is exactly what I got for the corp tax for 3 months and similarly for the first 12 months period, it was also under the lower limit.
Profits were £104,026 so it was half at 19% and half at 20%.

In the second e-mail, did you have to start explaining about rollover relief?

ChloeGee

Cortez wrote: »

For rollover relief do you have to buy the new building 12 months before/6 months after sale?

Think it's something like 12 months before the end of the accounting period in which you sell it and up to 36 months after.. ?

Pigpen

Cortez - My books for rollover say new asset must be bought up to 12 months before or 36 months after

oxongirl78

Zola your figures all seem familiar to me...I think that's what I got too :-)

popcornlpw

Gianfranco Zola wrote: »

I think for the second months I had:

145,782 x 3/15 = 29,156
Less: gift aid ( 300)

PCTCT 28,856

'profits'

PCTCT 28,856
dividends 2,500

31,356

then as this was under 37,500 i multtipied the PCTCT by 20% to get corp tax payable of £5,771

I think I add the chargeable again in the 3 months peroid

jilbo

Cortez wrote: »

For rollover relief do you have to buy the new building 12 months before/6 months after sale?

12 months before/3 years after

oxongirl78

ref the rollover relief, since they gave the figures I thought it best to use them to illustrate how it would work with a calculation. I just hope my method was correct - I was waffling a bit..