PTC Indexation Figures Todays Exam
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Did anyone else have the same problem as me with the indexation figures that they gave us.<BR><BR>The first figure didnt seem to relate to any event for the 85 pool. Was this a mistake or did i miss something major?<BR><BR>All i ended up doing was indexing to the first date, and then indexing again to the second figure and then adding on the shares.<BR><BR>Please can someone put me out of misery on this, as i feel i missed something mega-important.<BR><BR>Also i messed up on income tax, as i thought a computer was exempt, but my notes tell me that only up to £500 is - urgh -<BR><BR>Will be retaking in June - which is shame as paper confusing but not that difficult.<BR>
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PTC Indexation Figures Todays Exam
i assumed that wasnt furnished, as otherwise would have said so, and just dumped all the rates etc in one box on tax return and put agents fees in "other".<BR><BR>I also reckon that sub must have been approved.<BR><BR>Wasnt sure what effect adding both index figures together would have so did it separately to make sure.<BR><BR>Whole exam was badly worded, as everyone else seems to think!<BR>0 -
PTC Indexation Figures Todays Exam
Computers up to the value of £2,500 are exempt was the general opinion within our college group. The initial indexation of the share pool was a new one though. Best guess was just to index by the first figure & then index new total to the next share purchase date ?!?0 -
PTC Indexation Figures Todays Exam
In Section 1, PC was exempt coz of de minis value of £500. Subscription was paid by employee so was a deductible expense plus 6% pension reduced annual salary. Only car benefit less 12 months contribution for private use and fuel were taxable benefit. ISa was exempt. Dividends were grossed up and taxable.<BR>In section 2, Schedule A income was nil and personal allowance is restricted so cannot be extended to reduce capital gains. Shares - indexed to following april then July 90 and so on. There was a loss on C limited and offset this loss against shares that only had 95% relief. And CGT was calculated at 10% coz none of tax calculations utilised on income tax computation. Picture was exempt.<BR>0 -
PTC Indexation Figures Todays Exam
As others have said the computer benefit was 20% But after calculating the benefit it was less than 500 so exempt.<BR><BR>I also time apportioned the benefit because I thought it was only available since Dec04. Thinking back it may have said Dec 03 in which case my apportionment was wrong.<BR><BR>In either case it was less than 500 so exempt0 -
PTC Indexation Figures Todays Exam
Yeah that is another way of putting it. Because 20% of 2500 is 500, the first 500 tax calculated is exempt, or you could say the first 2500 of the benefit is exempt. It would have to be a pretty good computer to be more than 2500 though, or am I just out of touch?!?!0 -
PTC Indexation Figures Todays Exam
My text book says PC's exempt up to 2500. It's not a bpp text though.0 -
PTC Indexation Figures Todays Exam
My notes say that 20% of the value of the computer is the benefit but if 20% is less than £500 then its exempt.<BR>I was confused by the indexation figures too and ended up using both of the first two one after the other. Don't know if this is correct or not and I cant find anything in my books about it.0 -
PTC Indexation Figures Todays Exam
Benefit on computers is 20% of market value when benefit given, but first 500 of benefit calculated each year is exempt. That's why I got the computer in today's exam to be exempt in the end. Please tell me someone else came to that conclusion!!0 -
PTC Indexation Figures Todays Exam
My notes say PCs up to 2500 are exempt. Can someone else comment on that please? So I left it out too. I found all the dates related to when shares were bought so no problem there for me. <BR><BR>I also assumed the flat unfurnished as otherwise I think it would of said it was. <BR><BR><BR>0 -
PTC Indexation Figures Todays Exam
When I came out of my exam and went to the pub (tut tut I know!!) I discovered that half the group had indexed twice, and the other half had added the two indexation figures together and gone straight from '84 to '90. Not sure what difference it would have made. The 2 things that confused me were a) the rental situation mentioned no wear & tear (was it unfurnished??) so I didn't take any, and b) in the first part it didn't mention whether his professional body subscription was IR approved, so I assumed that it was, but I think that was the general consensous anyway.0 -
PTC Indexation Figures Todays Exam
Hi Cludia, I got the same problem with the index figuars. I think the right answer was to take first 85 fig then the next purchase date, so Dec, 90 I think so. write me your opinion please.<BR>0 -
PTC Indexation Figures Todays Exam
Don't think indexation was in operation before 1985 - that is why it is called the 1985 pool. So we should have ignored any indexation before that date.<BR><BR>I might sound clever but only remembered it after leaving the exam.<BR><BR>Hope that helps or not as the case may be.0 -
PTC Indexation Figures Todays Exam
Regards indexing, I did the same as you Zac. it was only a guess, but you had to do something even if you didnt know what to do. My friend indexed twice on the £2000. But I suppose whatever anyone did if they followed it through it would be OK.<BR>0 -
PTC Indexation Figures Todays Exam
I also exempted the computer as it was under £2500, and thought that it was only if over £2500 you took off the £500.<BR>0 -
PTC Indexation Figures Todays Exam
My notes read " Where the asset is a computer,the first £500 of the benefit charge is exempt ( the excess is taxable )" I therefore did the following working: (£cost - £500) x 20% x 4/12. I cant remember what the cost was. Don't know if this was right.0 -
PTC Indexation Figures Todays Exam
I worked out that the taxable benefit on the pc was nil, as I read somewhere that the £500 gets taken off AFTER the 20% is worked out. Therefore in this case it brought it down to nil.<BR><BR>Not sure if that was right or not but I went for it. Sounds like most of us put nothing for the pc so that will probably be taken into account even if we were supposed to include it.<BR><BR>Good luck for the results everyone!0 -
PTC Indexation Figures Todays Exam
Regarding the Share pool - it is called the "1985 Share Pool" but actually starts in 1982. It is prior to 1982 that a diffrent system existed - confusing I appreciate.<BR><BR>0