PTC - suggested answers (inc where i went wrong)

Sent these to a few people yesterday and got some very useful feedback - Thanks all. Copied below - further feedback would be appreciated.

Section 1.

Task 1.1
Car use - 22%
Fuel - £22%

Computer - (1500 x 5/12) x 20% plus (1800 x 7/12) x 20%. No £500 exemption any more.

Mobile - exempt

£7177 in total - I think.

Task 1.2

Rent - Property B rental 8 months. Don't adjust expenses (all allowable)or time apportion. Deduct loss. £7000 if I recall

Task 1.3.

Employment income
less Pension @ 3% of £1155
less subs
Add Rent
Add BIK

BSI x 100/80
Div x 100/90
ISA - exempt

Task 1.4

Straight forward tax calc (Basic band not adjusted for pension as occupational.)

Task 1.5

Straight forward tax form. Note. P60 income is Gross less pension (£37345), include 3 benefits and subs.

Task 1.6.

Additional ISA income irrelevent as exempt
£150 charity payments would have extended his Basic Tax Band so he'd have paid less tax. Waffled a bit about being fined for incorrect return and liable for interest on money owed - but not relevent here as the error is costing him.

Task 2.1

Match 1 - 500 within 30 days

Match 2 - 300 Rights issue (I've messed up here. Rights issue are matched with originals). The correct process is to add to the original shares (number and cost). Indexation is not available on the Rights Shares though you'd index the FA Pool upto 98 then add the 300 Rights Shares and cost to that balancing figure. You would then dispose of 3500 of the Pool and index the gain at 65%.

Match 3 - 3200 from FA98 pool. (Should be 3500 as above)

Task 2.2 - was this the land one? Exempt as between spouses.

Task 2.3. Relieve £4000 loss against Match 1 to nil off, Match 2 to nil off and reduce Match 3. (Obviously wrong as only 2 matches as 2.1. done wrong)

Task 2.4 - Basic income tax comp.I incorrectly ignored the dividend at this point as it cancelled itself out. My thinking was that it might affect the CGT bands and that was the reason it was there.

Task 2.5. CGT all at 20% (after deducting £8800 allowance.), as enough within Basic Band following Task 2.4. Payable on 31 Jan 08.

Task 2.6.Didn't read the question proprerly so didn't realise that all allowance had been used up, until i'd done answer. Had to amend Painting bought in 1985 advice.

Vintage Car - exempt. This has been queried by someone i sent my answers to. I cannot see anything in the books to change my understanding.

Painting bought 85 - restricted gain (10000-6000)x 5/3. Am I right to think you couldn't accurately work out the alternative due to no indexation being provided in the question. Bit confusing. You would normally compare Proceeds less cost less indexation with the restricted calculation to see which was most beneficial. I was quite clear that the restricted would be the most beneficial but i still thought it was a confusing issue.

Painting bought 98 - bought for and sold for under £6000 - exempt.