BTC & PTC Revision Game

13

Comments

  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    *Jo wrote: »
    Erm not so sure about the name, Cessation Loss? But you can carry back 35 months instead of the normal 12.

    Q. In what circumstances can you claim temporary loss relief and what does this mean?

    Is it where you can carry back your losses to the previous two accounting periods UP TO THE VALUE OF 50K in addition to previous accounting period you usually would?

    e.g = X Ltd
    2007 profit £100
    2008 profit £200
    2009 profit £100
    2010 loss £350

    Loss relief means you can carry back the £350 loss so the taxable profits would be:
    2007 £50
    2008 NIL
    2009 NIL
    2010 NIL

    Sorry if i've got the wrong end of the stick with the intended question.

    Q It's already been asked but I can't think of anything else.........

    Without looking back in the thread, what is entrepaneurs relief?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Terminal loss 36 mths

    Is temporary loss relief to do with carrying the loss back 12 months aginst pctct and then a further 2 years upto 50k - guessing on this

    Q - What is a balancing charge
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    nscuffell wrote: »
    Terminal loss 36 mths

    Is temporary loss relief to do with carrying the loss back 12 months aginst pctct and then a further 2 years upto 50k - guessing on this

    Q - What is a balancing charge

    If a business ceases the proceeds are deducted from the pool. If it is more
    than the current value of the pool, the difference is the balancing charge.

    Q What is a balancing allowance?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    It is when the proceeds are deducted from the pool and there is still a balance outstanding, this is then claimed as a balancing allowances.

    Q- What is rollover relief
  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    nscuffell wrote: »
    It is when the proceeds are deducted from the pool and there is still a balance outstanding, this is then claimed as a balancing allowances.

    Q- What is rollover relief

    Rollover relief is a relief on Capital Gains available on qualifying assets when disposed of.

    When you dispose of a qualifying asset and reinvest the money into a new qualifying asset, the gain can be rolled over onto the new asset. If the whole of the proceeds are not reinvested then rollover relief is reduced accordingly. The rollover relief is deducted from the base charge of the new asset and therefore will attract a higher gain when disposed of unless reinvested again. You can claim rollover relief on new assets brought 12 months prior to disposal and up to I think 36 months after. The new asset must be brought into use immediately upon purchase to qualify.

    Q What is/are qualifying assets for rollover relief?
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    David disposed of his unincorporated business in August 2009 and made the following gains and losses: -

    Factory £300,000 gain
    Warehouse £80,000 loss
    Goodwill £400,000 gain.


    During the 2009/10 tax year he also disposed of an antique grandfather clock and realised a gain of £10,000.

    What is David's total chargeable gain, before the annual exemption?

    I.£630,000
    II.£285,556
    III.£630,000
    IV.£354,444
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    £354444

    Q - What percentage is disallowable for lease rental of cars over 160g
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    nscuffell wrote: »
    £354444

    Q - What percentage is disallowable for lease rental of cars over 160g

    how did you get that?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    300000-80000+400000=620.000 less ent relief 4/9 = 275556 = 344444 + 10000 = 354444
    Do you think I am wrong then!!!
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    nscuffell wrote: »
    300000-80000+400000=620.000 less ent relief 4/9 = 275556 = 344444 + 10000 = 354444
    Do you think I am wrong then!!!

    god no, i just had no idea myself (esp as two answers were the same) so like to know how it should be worked out
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    I am sat here with my business tax books out doing the test papers - Cant wait to when it is over and I can have a life again - well for a few more weeks until I get stuck into the last 2 papers, that is providing I pass the 3 I am taking this time!!
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    nscuffell wrote: »
    I am sat here with my business tax books out doing the test papers - Cant wait to when it is over and I can have a life again - well for a few more weeks until I get stuck into the last 2 papers, that is providing I pass the 3 I am taking this time!!

    this is my weakest subject
  • dantray
    dantray Registered Posts: 72 Regular contributor ⭐
    what is the difference between:

    Shares - bonus issue
    Shares - rights issue

    ?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    bonus issue are shares given to you at no cost at maybe a split 1 for 4
    rights issue is the chance to purchase more shares at a price.

    bonus shares are not indexed as there is no exchange of money
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    Q Can any of you tax wizards advise me on what National Insurance stuff i'm meant to know? The upper and lower limit figures seem reeeealy odd and there's no way i'd remember them, do you know if they're provided etc?

    Thanks in advance :-)
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    Pretty pretty please? :-)
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    I am pretty certain that they are supplied to you, well I am relying on the fact that they are!!
  • SLM
    SLM Registered Posts: 64 Regular contributor ⭐
    Yeah if you look back at the past papers all that sort of info is provided...
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    SLM wrote: »
    Yeah if you look back at the past papers all that sort of info is provided...

    I don't rely on information provided in past papers. The format and content change regularly, as demonstrated in this coming DFS paper. The people on this forum are very helpful and may have knowledge about upcoming exams that I don't yet know.

    I have only completed a hand full of past papers so far as I need to ensure I have covered the entire syllabus, which is quite big for BTC (unfortunately!!)

    Thankyou everybody!!

    Hmmmmm.... Maybe a question for the thread, to keep it alive???

    Q In what circumstances does a company not need to pay Class 2 NIC's?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    companies dont pay class 2, just self employed - is this a trick question??

    Q - what emissions can you do fya 100% for cars
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    nscuffell wrote: »
    companies dont pay class 2, just self employed - is this a trick question??

    Q - what emissions can you do fya 100% for cars

    Yep :-) How very naughty of me. Hehehehe. I kept getting caught with the tick questions in the DFS thread!!!

    I dont have my study material to hand, but is it the ones below 110? I also have 160 in my head but i think its 110..........
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    isn't 160 high emissions?
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
    nscuffell wrote: »
    companies dont pay class 2, just self employed - is this a trick question??

    Q - what emissions can you do fya 100% for cars

    Low emissions cars 110g/km or less.

    Q. A car bought in May 2009 for £18,000 with emissions 140g/km.
    What pool would you put it in?

    Ampsie
  • MichaelBeechFMAAT
    MichaelBeechFMAAT Registered Posts: 16 New contributor 🐸
    Who's up for this then? BTC 2010 June exam!!

    As a revision towards the BTC 2010 exam coming up, want to compare notes for figures with this?

    Chocolate Heaven is changing their accounting timelines. In order to achieve this, they have put together a set of figures over a period ranging from 1.12.2008 to 31.3.2010
    Capital allowance have already been put together for these CAPS.
    CAP 1.12.08 to 30.11.08 £9k
    CAP 1.12.09 to 31.3.10 £3k

    The set of accounts for the 16 months to 31.3.2010 is:
    £ £
    Sales 300,000
    Less COGS (150,000)
    Gross Profit 150,000
    Plus: Bad Debts recovered 3,000
    Disc Received income 1,800
    154,800
    Less expenditure:-
    Wages (66,000)
    Rent and Insurances (10,000)
    Depreciation (9,000)
    Sales expenditure (17,000)
    Interest Payable (8,000)
    Bad debts written off (12,000)
    Bank Loan Interest payable (8,000)

    Net Profit 24,800

    Extra information is given:-
    Analysis of depreciation is: Depreciation £40,000; Loss on sale of Fixtures £18,000;
    Profit on sale of Buildings £49,000
    Sales expenditure has in it : Entertaining clients 2,000;
    Gifts of mouse mats to clients £800 (which have a little logo on them £8 per mouse mat)
    Here’s the challenge, in preparation for the Business Tax exam coming up soon (June 2010)

    (a) Adj the accounts over the 16 mth period (b) Spread out the adj profit figure over the two CAPS (i.e. time-apportion) and (c) Tell us the trading income assessment for each CAP

    Michael
    Michael Beech FMAAT CIMA Dip MA
    Co -Director AM-Accounting & Business Advisors Ltd
    Director, MSBeech Enterprises Ltd t/a Michael Beech Accountancy
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Ampsie wrote: »
    Low emissions cars 110g/km or less.

    Q. A car bought in May 2009 for £18,000 with emissions 140g/km.
    What pool would you put it in?

    Ampsie

    This would go in the gen pool with 20% ?
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    Primble wrote: »
    isn't 160 high emissions?

    Yeh, I just had the two figures in my head. I was certain it was the 110 one but my silly brian was shouting 160.... 160....!! Haha. Am I right in thinking that cars over 160 emissions go in a separate pool?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    As far as i know and that isnt a lot lord help me 110 and less get FYA 100% low emissions 160 and less go in gen pool and get 20% and the rest go in the special pool and only get 10% please let me know if this is right ????
  • Rachey
    Rachey Registered Posts: 589 Epic contributor 🐘
    A-Vic wrote: »
    As far as i know and that isnt a lot lord help me 110 and less get FYA 100% low emissions 160 and less go in gen pool and get 20% and the rest go in the special pool and only get 10% please let me know if this is right ????

    I was under the impression cars over 160 only get 10% too. And cars under 110 get 100% FYA (an encouragement for companies to be green) so i'm also presuming everything in between is in general?

    I hope you're correct Vic, because i'd follow the same rules as you!!
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
    A-Vic wrote: »
    As far as i know and that isnt a lot lord help me 110 and less get FYA 100% low emissions 160 and less go in gen pool and get 20% and the rest go in the special pool and only get 10% please let me know if this is right ????

    I've just been revising that bit - yes you're right! Below 160 general at 20% above 160 special pool at 10%.

    The bit i KEEP forgetting is if it was an expensive car bought before 1/4/2009 it will be in an expensive car pool. WDA is 20% but is capped at £3,000.

    Too much to remember! lol

    Q. What is the formula used for calculating the cost of a part disposal?

    Ampsie
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    yay i was right bout 160 being high. i have learnt something
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