PTC Tomorrow - Capital Gains!

Kyle
Kyle Registered Posts: 45 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
With the serious simplification of the CGT rules, what does everyone think they will add to the PTC exam to beef it up a bit?

Comments

  • Welshdragon
    Welshdragon Registered Posts: 9 New contributor 🐸
    Nothing I hope just probably add more variations ie land, PPR, Chattels (which confuses me) good luck anyhow - will be glad to get over with myself
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    I sit the PTC in the morning and I'm happy enough with section 1, but I am only today learning the Capital Gains (it works for me last minute learning !).

    I cannot believe how easy we have it this year compared to last year with taper relief and all the other bits. I too wonder what will be added to the exam to compensate for the single Capital Gains Tax Rate !!!!!

    I think i will be sat up till late on the selling shares portion, at the minute its making my brain hurt. A good 6 hours of going over it should help.

    Good Luck for the morning.
  • Nagra
    Nagra Registered Posts: 28 Regular contributor ⭐
    Capital Gains is pretty straight forward as long as you remember most of the rules, its section 1 that I need to get my head round
  • Kyle
    Kyle Registered Posts: 45 Regular contributor ⭐
    Nagra wrote: »
    Capital Gains is pretty straight forward as long as you remember most of the rules, its section 1 that I need to get my head round

    That's what I'm worried about, CGT is way too straight forward now, they're bound to add something extra!
  • Nagra
    Nagra Registered Posts: 28 Regular contributor ⭐
    Kyle wrote: »
    That's what I'm worried about, CGT is way too straight forward now, they're bound to add something extra!

    Probs make you fill out the Tax form and ask you about penalties etc :001_unsure:
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    Hi Nagra

    Give me 5 or 6 hours to learn the Capital Gains Tax part and then I will let you know if I agree !!

    The rules are straightforward enough but the shares part made my head spin.

    As for section one I have spent 3 whole days on that and it finally started to sink in properly yesterday afternoon. I'm confident I will pass section 1.
  • Nagra
    Nagra Registered Posts: 28 Regular contributor ⭐
    Tracy Keeley wrote: »
    Hi Nagra

    Give me 5 or 6 hours to learn the Capital Gains Tax part and then I will let you know if I agree !!

    The rules are straightforward enough but the shares part made my head spin.

    As for section one I have spent 3 whole days on that and it finally started to sink in properly yesterday afternoon. I'm confident I will pass section 1.

    Tracey, I'll swap your knowledge on section 1 for my knowledge on shares, I think shares is the easiest thing on there. What you struggling with??
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    If only !!!

    To be honest i've only really glanced over the case study and it looks quite complicated the pooling of shares and allocating this bit and that bit against things. I have the rest of the afternoon to swot up on it.

    I will definitely be going over the penalties for late payments and completing tax returns also the record keeping, just in case we have more memo's to write in section 2.

    If i am struggling with the shares after my afternoon studying I will shout up for your help.
  • Kyle
    Kyle Registered Posts: 45 Regular contributor ⭐
    As a matter of interest, anyone know what rate of interest is used on late payments for our exam? My Osborne book states 7.5% (at time of publishing).

    But the HMRC site is less than useful.

    http://www.hmrc.gov.uk/rates/interest-late.htm#itnic
  • Greycow
    Greycow Registered Posts: 83 Regular contributor ⭐
    As far as I am aware all relevant percentages are given on the sheet in the paper, the HMRC official rate on all the BPP practive papers and book is 6.25%
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    I am using Osbourne Books also.

    6.25% rate is the official rate to use for example on a loan
    7.5% interest rate payable on late payment of tax

    I'm going to go with them figures.
  • Chris023
    Chris023 Registered Posts: 93 Regular contributor ⭐
    Have you seen the AAT guidance on the PTC changes?

    It said to expect more benefits in kind and more on income from property, which I am going to revsie quite heavily.

    Also I think there will be stuff on PPR in there as well :( that does my head in the most!
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    Chris023 wrote: »
    Have you seen the AAT guidance on the PTC changes?

    It said to expect more benefits in kind and more on income from property, which I am going to revsie quite heavily.

    Also I think there will be stuff on PPR in there as well :( that does my head in the most!
    What is PPR ?
  • Chris023
    Chris023 Registered Posts: 93 Regular contributor ⭐
    Principal Property Relief.... you know where you have to work out the occupied and unoccupied months of a property
  • Tracy Keeley
    Tracy Keeley Registered Posts: 29 Regular contributor ⭐
    Chris023 wrote: »
    Principal Property Relief.... you know where you have to work out the occupied and unoccupied months of a property
    Oh great that ones a nightmare !!
  • hanapospis
    hanapospis Registered Posts: 111 Dedicated contributor 🦉
    Can anyone please explain me a few bits in benefits in kind...

    In June 2007 exam
    The company provides employee with a mobile telephone. The purchase of the phone and the calls from it cost the company a total of £350 for 2006/07.
    - Why is this exempt?

    If employee is working for a travel agency and he/she buys a holiday from the employer for the £1200 (cost of the holiday) and the holiday is normally selling for £2000. Why is this exempt as well?

    And the last thing is regarding vans. If employee has a use of Van for private and business purposes, he scale charge is 3.000 (no computations is needed). In Osborne book further says that this amount does not include any private fuel which is assessed in the same way as fuel for company car (16.900 x certain percentage)
    But in taxation table for personal tax 2008/2009 provided by AAT is:
    Charge:………………£3000
    Private fuel provided…£500

    What is £500 for?
  • Jacalina
    Jacalina Registered Posts: 13 New contributor 🐸
    I can answer the mobile phone question. Mobiles phones are exempt up to 1 per employee. I just read it in the text book yesterday :001_smile:
  • Lizzim
    Lizzim Registered Posts: 48 Regular contributor ⭐
    hanapospis wrote: »
    Can anyone please explain me a few bits in benefits in kind...

    In June 2007 exam
    The company provides employee with a mobile telephone. The purchase of the phone and the calls from it cost the company a total of £350 for 2006/07.
    - Why is this exempt?

    If employee is working for a travel agency and he/she buys a holiday from the employer for the £1200 (cost of the holiday) and the holiday is normally selling for £2000. Why is this exempt as well?

    And the last thing is regarding vans. If employee has a use of Van for private and business purposes, he scale charge is 3.000 (no computations is needed). In Osborne book further says that this amount does not include any private fuel which is assessed in the same way as fuel for company car (16.900 x certain percentage)
    But in taxation table for personal tax 2008/2009 provided by AAT is:
    Charge:………………£3000
    Private fuel provided…£500

    What is £500 for?

    If the employee is provided with private fuel while using a company van (not car) the assessable benefit is £500
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    becasue she has bought it from the employer....not a benefi in kind....

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