Mock Exam Question Reference:
Q 1: Q1 M1 BPP
Q2 M3Q2 BPP
Q3: Q12 BPPK
Q4: Q 33 BPPK
Q5: Q 37 BPPK
- You scored 1 mark straight away by presenting your answer in nice form.
Calculation of shortfall of cash to cover the expenses was calculated perfectly which earned you 4 marks.
Option 1- your scored 2 marks here. You lost marks because of wrong explanation of Stamp duty, you also ignored tax on dividend which lost you two more mark
Option 2- you did few omissions here, you calculated tax on after tax proceeds, which is wrong. You ignored ER on FHL and lost some marks. Ignored, dividend and tax hence lost more marks. Weak understanding of stamp duty against lost you a mark. You scored 3 marks here.
Option 3- your explanation of gift relief availability is wrong , it was available not because of investment property but because it was FHL. You ignored tax on rental income and lost more marks. You ignored tax on dividend again and lost marks. You scored 2 marks in this part.
Option 4- you explained this point well about rent a room relief. Gift relief will be available Stamp duty wont apply. You scored 4 marks here.
Your total score in this part of the question is (16) out of possible 21
- This part was all about writing and no calculations were needed. You raised few good points and scored (3) marks in this question. You omitted or explained wrong many points which are as follow.
DTR, Political party, death tax rate, BPR on property used by partnership, BPR rate on partnership , residence status, cost of administering overseas property, funeral expense etc. you wasted time calculating benefits of lifetime transfer which was not needed. Read the question carefully, ask yourself why I am given this information, what I can write about this information and try to relate the information with the scenario and topic.
You also gained (3) presentation marks because of neat and professional answer.
Your total marks in this question are 22 out of maximum 35
. Your “de grouping charge” and “Substantial shareholding exemption” is weak. Please remember it’s not F6 Exam where only calculations are needed, its P6 exam where you need to write commentary and explain your calculations. Identify in the question why this information is given? Examiner does not give any information without purpose. Always incorporate all information in your answer to maximize your marks.
- Your identified CGT group correctly and said it will be at no gain no loss but eventually when you came to calculate it you took the actual cost? Cost will be the amount paid by A when purchased this property plus the indexation allowance from that date up until date of sale of this property.
There were 8 marks allocated to commentary in this question (of which most of them were about SSE and DE grouping charge) of which you gained (3) marks. For calculation there were 3 marks, you gained two of it as you miscalculated cost portion.
- Now in this part it says do “Calculations” so majority of marks were for calculations. It was very basic chapter 1 calculations, but unfortunately you did not do it right. You seemed to struggle calculating basic Income tax calculations & national insurance calculations despite of Tax bands given to you in the exam paper. Your marks in this part are below satisfactory and you scored just (1)
- It was typical “Ethics” question which you see in almost every P6 exam. You raised 4 points and were given (4) Every point earns you a mark. Always raise points equal to marks allocated in the question.
Your Total marks in this question are 8 out of possible 25
- It was commentary part as it says in question “Explain” so no calculations were necessary. There were couples of marks for explaining the circumstances when CGT could be paid in installment, relating these rules with scenario and explaining further why or why not in this case CGT will be paid in installment would have earned you marks. You just said because it was gift so CGT could be paid in installment; It was correct incomplete sentence, so earned lost easy mark here. When its gift and gift relief is not claimed only then you can pay by installment and this rule only apply to some assets which include building. You did not mention when first installment will be paid. You said interest will be charged on installments, its wrong, interest is only charged on late paid installments. Your understanding about when to pay CGT by installment needs revising. You earned (2) marks in this part, one of which was about the point when asset is sold and all installments need to be paid at once. Always ask yourself after finishing part of a question (Did I raise enough valid ideas according to marks allocated to this part?) one idea = 1 mark. Another important tip is always highlights word “AND” on question requirement, it means examiner is asking you to do this AND do that.
- This part was again about writing and no calculation was needed. It asked to tell what would be penalty because there was error in Tax return of previous tax year. Your knowledge about self-assessment is very weak, revise it, you scored (0) marks in this part. Maximum penalty in this was 30% of Potential lost revenue to HMRC, which may be reduced to minimum of 15% depending on your circumstances.
- Most of this part was about calculation, one of candidate’s favorite. You calculations were right at time but did not had any support (workings). Always explain the calculations in words, there was no further tax on shares as it was 7 years old. Lifetime tax paid on it was not 40%, lifetime tax is either 20 or 25% depending on who’s paying. You reduced total estate by amount of tax paid in life, which is clearly wrong, you ignored NRB. You did not state basis of DTR calculated, always state how you are calculating DTR. Calculations need to be supported by workings and commentary. You missed interest calculation and lost easy marks.
Always ask yourself why examiner is given me this information. What he want me to do with this information. You scored (2) marks in this question. Revise your IHT calculations and theory too.
Your Total marks in this question are 4 out of possible 20
- You scored (5) marks in this part as you raised many good points, although you missed some, your answer was too brief, you did not explain why its divided not a benefit ? you should have stated because its close company and its gift to participator. You should always convey to examiner that you know this rule, if you don’t convey examiner will assume you don’t know it, even you though you do. You missed national insurance consequences too. Always think from every angle while answering the question especially when you have to choose between two options given.
- Your explanations were too vague and scored you no marks here.
- Part (i) was about Prtial exemption of VAT, very favorite of examiner. Although you did well in this part but your explanations were brief here too, it seemed like you know the concept and calculation but do not know the theory of it. Please revise as theory is important and you can lose marks. You scored (3) marks here.
Part (ii) you scored (3) marks in this part because of your brief answer and you missed some conditions too.
Your Total score in this question is 11 out of possible 20
Unfortunately you could not pass this mock exam but don’t be upset, learn from mistakes and apply in exam, you still have many days from exam, try & read all the tips which are pointed out, learn from mistakes and don’t repeat them in real exam. Read question carefully, what is being asked, take your time planning the answer, give special attention to words like “AND” in the question it is asking you to do two different things and marks are divided. Ask yourself why this piece of information is given to me in the question and what I can do with it. Improve theory of AccountacyTube notes & learn rules on finger tips. Do not spend much time deciding which optional question to choose. Do not write irrelevant stuff which wastes your time and effort, 1 good point is better than 5 irrelevant points, so spend time thinking instead of writing irrelevant stuff.
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