Business Tax FA 2016 exam tomorrow ! Help with some queries pls!

yan18

hi, I have my BTAX FA 2016 exam tomorrow morning and was hoping to get some answers before then as my tutor has not responded yet..

1. In my notes, I have 'Charity/political donations' as a disallowed expense (add back) as they can be deducted from TTP if Gift Aid.
In one of the AAT questions, it states 'small local charity' - am I correct to assume this would mean it does not qualify for Gift Aid thereby the expense does not need to be disallowed in the workings?

2. Rounding figures - when I check my rounded figures to the answers for the AAT assessments, I am £1 out sometimes as I tend to round up or down. However, will I lose any marks for this as these sections are likely to be marked electronically rather than manually? Is there a rule of thumb for rounding that I should be aware of - i.e. always round up?

3. In task 8 where we need to fill in figures on the tax return, I've noticed in the answers that box 165 is never used although this can be worked out from box 155 minus 160. However in the last box 235, this appears to be filled in which uses the figure from box 165. I just wanted to know that if I do enter a figure in box 165 that I wouldn't be marked down for this?

4. In task 11b of the AAT assessment - the answer comes to £550,000 - is anyone able to show me the workings as I could not work this one out?

THX!!

sue2011

Hi guys
please can u help me

task 11b of the AAT assessment - the answer comes to £550,000 - is anyone able to show me the workings as I could not work this one out?

Reme

Hi guys,
here the same query, can somebody help please?

task 11b of the AAT assessment - the answer comes to £550,000 - is anyone able to show me the workings as I could not work this one out?

Many thanks!

Adele69

You might get more help by posting the question in full (as pointed out in many posts - the people with the most knowledge on here do not necessarily have access to the Study Support for your particular exam only those doing whatever AQ2013 or AQ2016 exams and a lot of those students do not comment).

I'm also studying BTAX FA2016 (AQ2013) but about a month away from exam prep.

gagan

@yan18
could you please tell me which assessment are you talking about?
and in my notes GIFTS TO SMALL LOCAL CHARITIES IF THEY BENEFIT THE TRADE are ALLOWABLE

Reme

Ranjit sold a business in July 2012 and made a gain of £7,500000
in Feb 2017 sold another business making another gain £4,000000
Neither of these business are residential properties
Ranjit used her annual exemption on other capital disposals.
How much capital gains tax on the disposal February 2017?

CSan89

yan18 said:

hi, I have my BTAX FA 2016 exam tomorrow morning and was hoping to get some answers before then as my tutor has not responded yet..

1. In my notes, I have 'Charity/political donations' as a disallowed expense (add back) as they can be deducted from TTP if Gift Aid.
In one of the AAT questions, it states 'small local charity' - am I correct to assume this would mean it does not qualify for Gift Aid thereby the expense does not need to be disallowed in the workings? Small local charities are allowed. Its best just to think of it as if its a national/international charity(oxfam) then it is disallowable. This also include local shops of national charities.

2. Rounding figures - when I check my rounded figures to the answers for the AAT assessments, I am £1 out sometimes as I tend to round up or down. However, will I lose any marks for this as these sections are likely to be marked electronically rather than manually? Is there a rule of thumb for rounding that I should be aware of - i.e. always round up? The rule for rounding is in favour of the taxpayer (tax - round down, allowances - round up) however AAT will not penalise you for a rounding mistake. I'm sure it say this on the introduction page on the exam

Megan1

Hi guys
I am sitting my BTAX FA 2016 exam in two weeks. I am wondering is this exam for two hours or two and half hours? AAT online both sample assessments are set only for two hours.

Can anybody who has sat this exam tell me please?
Many thanks in advance.

Reme

Hi yan18

1. You are correct. Since AAT is stating "samll local charity", this expense is allowable - Gifts to small local charities are allowable as this could benefit the trade by being classed as advertising.

2. Can't help on this one as I was having the same doubts myself.

Best of luck tomorrow!!

Reme

Hi Megan1

I have not sat the exam as yet but it is for 2 hours

Reme

Entrepreneur's relief on £10m, less the £7.5m in 2012, leaves £2.5m
CGT 10% x £2.5m = £250,000
This leaves £1.5m (£4m - £2.5m)
There is no basic rate band left, it has been consumed by the £2.5m
GCT 20% x £1.5m = £300,000

250,000 + 300,000 = £550,000

Megan1

@Reme
Thanks for your reply but my tutor said it is for two and half hours. It sounded he was pretty sure.
Half hour is a big difference anyway. I've got confused.

Reme

Hi Megan,
If your tutor said that the exam is 2,5 hours, he will provably be right. However exams are usually the same time as the AAT sample assessments, and if you check in the AAT website, BTAX FA 2016 is for two hours.
Wish you the best of luck!

Megan1

@Reme You are right, it is indeed for 2 hours.