business tax answers are up!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
iv just looked at the past papers fo june 07 exam and the answers are up for only the business tax!! the others are the ques papers

i got loads wrong though!!! :(

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    seems to be a mistake by the AAT as they have put them up instead of the questions

    I wish they had done it with the DFS too so I could be put out of my misery
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    I think they've sorted it out now.

    A couple of PMs have come through to me asking if I will have a look at the DFS paper.

    I have pulled the paper off the site and will have a look at it. When I've done it I'll put my answers on accountancy students website so I'm not bombarded with email requests.

    Kind regards
    Steve

    p.s. It won't happen overnight!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    Steve,

    Can you give me a link to the site you will be putting them on please so I can keep an eye out?


    Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    www.accountancystudents.co.uk

    As I say, give me a few days as I am going to ask someone else to have a look at them as well when I've done them.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    And who will that other person be? I hope they are well qualified :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    I have looked at the business tax answers, and i am not certain they are completely right. I can't quite remember the question, but i thought i had worked out the IBA wrong.

    I did not include land preparation costs when working out my answer, and i have looked in my text book since, and they are allowed. However, i think the AAT's answer does not include them.....
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!
    bluewednesday wrote:
    And who will that other person be? I hope they are well qualified :lol:

    I believe she's a Sheffield Wednesday fan?? Perhaps! :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    According to the answers (which i managed to save before they removed them :D ) they included the factory and the fees iro the factory.

    Task 2.2
    (£75,000 + £3,000) x 4% = £3,120

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    I'm confused with the IBA question as both text books that I used (osborned and BPP) didn't have anything about legal fees for the construction of buildings, however I have looked on 2 websites (HRMC CA31400 - IBA Qualifying expenditure and Taxation WEb.co.uk) and both say that Legal Fees for the construction of a building are NOT a qualifying expediture for IBA. On the Taxation web site it even goes through a question showing that it is not allowable. Can anyone give me advice on this as its driving me mad!! Did the answers put up in error definately have Legal Fees for Building as allowable for IBA??:cry:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    The answer i gave above was the one in the official answers. This is the answer i provided, i.e. £78K. I can see where you're coming from though. HMRC specifically exclude legal fees but allow professional fees.

    http://www.hmrc.gov.uk/manuals/camanual/CA31400.htm

    CA31400 - IBA: Qualifying expenditure: Expenditure on the construction of a building
    You should give IBA on capital expenditure incurred on the construction of a building or the capital cost of buying an unused building.

    Expenditure incurred on the construction of a building includes:

    capital expenditure on repairs, that is expenditure on repairs for which a Case 1 deduction could not be made CA31450;
    the costs of demolishing an existing building in order to erect a new building provided that those costs are not taken into account in calculating a balancing adjustment on the old building;
    professional fees relating to the design and construction of a building provided that the building is actually constructed;
    and so you should give IBA on those costs.

    Expenditure on the construction of a building does not include:

    the cost of obtaining planning permission. If, however, a builder's quotation includes the cost of obtaining planning permission do not try to disallow that part of the quotation;
    capitalised interest;
    the cost of a public enquiry;
    the cost of land drainage and reclamation;
    landscaping;
    legal expenses;
    and so these costs do not qualify for IBA.

    I think AAT should mark both as right.

    On a side note this is the second instance of interpretation coming into these exams, the other was re: the computer in PTC. Not happy.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    thank you!! that has made me feel alot better even though I definately know I have failed!! I have made loads of stupid mistakes and am so angry at myself!! Do you know if the overlap profits were supposed to feature in our answers at all? :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    i deducted the overlap profits in task 1.2 calculating the assessable taxable profits as the buisness was ceasing to trade
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    did you use both trading profits added together or just the final profits? I just used the final profits and am sure that I used the wrong year!! I'm gutted.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    for task 1.2 i took trading profits for both years, deducted capital allowances calculated in task 1.1 for both year and part year then dedcuted overlap profits. i don't know if this is correct though
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:business tax answers are up!!

    Thanks, I know I have totally messed up as they were asking for adjusted profits for 06/07 and I just took the final profits for the 4 months and adjusted for the balancing charge and deducted overlap profits. Checking my tutorial books I am pretty sure I chose the wrong profits or should have added them together!! Oh well, will just have to wait for the answers when ever they are published!! :?

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