Mock Exam Question Reference:
Q 1: Q1 M1 BPP
Q2 M3Q2 BPP
Q3: Q12 BPPK
Q4: Q 33 BPPK
Q5: Q 37 BPPK
Performance Report
Question 1:
- Calculation of shortfall of cash to cover the expenses was calculated wrong. It was so simple but you calculated wrong. Tax rate for NI calculation was wrong, personal allowance amount was wrong. Workings were not clear and all over the place. Please understand its not marker’s responsibility to look for workings, If marker struggled to find your workings, he will simply not give you mark, they do not have time to look for working and figure out how did you manage to come up with this figure. In option one you assumed gift of all the shares and calculated dividend of all 1.3 million shares. It was absolutely wrong, In question it specifically asked you to tell how many shares will need to be gifted to cover the shortfall. You said there will be no CGT pyable whereas there will be CGT. There will be Capital Gains tax because it was quoted company and he owned less than 5% shares and so do not qualify for gift relief. Interest free loan was less than 10000 so not taxable. You ignored Stamp duty part. Your Capital Gains tax is very weak and need special attention. Please read the question carefully and answer all the parts to maximize your chance of passing. NI rates were given in paper & you totally ignored it. You did not consider tax consequences of dividend received and hence lost easy marks. You scored (1) mark for basic income tax calculation.
In option two, you ignored 6000 deduction from sales proceeds. You deducted 40000 for FHL, I do not know where did you get it from. You deducted annual exemption whereas it specifically said in question that annual exemption for CGT is been already used. You seemed to waste lot of time calculating letting relief which was not needed. Hence shows your week understanding of letting relief and rent a room relief and when to calculate it. You are not supposed to calculate income tax of calisia here, you are calculating tax of her daughter. Your interest calculation was right but did not calculate tax on it. You ignored ER on FHL too. you did not consider CGT. Your stamp duty explanation was wrong and needs revision. (1) mark in this part too.
Option 3 explanation was so brief and earned you zero marks out of 4.
Option 4 your calculation was totally wrong. You forgot what you were asked? You are doing same question and same part. You totally ignored what you were asked and explained IHT, which was in next part, hence scored zero marks.
You scored total of (2) marks in this part out of possible 21
This part was all about writing in commentary style and it was said in the question that no calculation is required, you still continued with calculation ignoring examiner instructions hence gained just (1) mark out of possible 10. Always follow what examiner says and don’t do otherwise if you want to pass this paper. Lot of your calculations were right but many were wrong. You only needed to explain these calculations, e.g. all assets will be taxable at death. Tax rate would be 40%, first 325000 will not be taxable because of NRB, additionally her husband’s NRB will also be transferred to her etc etc.. This was the way to pass this question.
You did not gain any professional or presentation mark as your answer was poorly presented, workings not cross referenced, not proper layout etc. if you would have presented this answer in proper form you would have gained up to 4 marks.
Your Total score in this question is 3 out of maximum 35
Question 2:
Please make your writing easy to read for examiner and present it well so its easier to mark. Candidates lose marks if answer is presently bad. Your “de grouping charge” and
“Substantial shareholding exemption” is weak. Capital gains group is weak. Please remember its 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.
- Sale was at non gain no loss because of Chargeable gains group, so cost will be when purchased by A, plus indexation allowance first from the date of purchase by A to 1st march 2014 and then again another indexation allowance from that date to 24th June 16. Post tax proceeds means sales proceeds of 140,000 less tax.
Your scores in this portion was below satisfactory. There was 8 marks allocated to commentary in this question in which you gained no marks. For calculation there were 3 marks, all of your calculations were wrong except that I can see you know the rule of indexation, so being generous I can give you only (1) marks in this part.
- Now in this part it says do “Calculations” so majority of marks were for calculations. It was very basic chapter 1 calculations, you did well as far as income tax of bonus is concerned. While calculating income tax on dividend you did a little mistake, tax on salary will be calculated first & then tax on dividend. You did not consider National insurance and Corporation Tax aspect in this part and hence lost some easy marks. You scored (5) marks out of total 9 in this part.
- It was typical “Ethics” question which you see in almost every P6 exam. You raised 3 points and were given (3) Every point earns you a mark. Always raise points equal to marks allocated in the question. Please write legible writing to make marker’s life easy.
Your Total marks in this question are (9) out of possible 25
Question 3
- 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 do not know rules about CGT installment & you wasted your time writing stuff which earned you no marks. Always remember, Do not write useless stuff when you know it will not earn you any marks, instead utilize that time thinking about useful ideas, writing 1 useful idea is better than 5 useless ideas. You scored no marks in this part and needs improvement on CGT theory from AccountancyTube notes. 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 no marks in this part as your all raised ideas were not relevant to what examiner asked in the question.
- This part was all about calculation, one of candidate’s favorite. You calculations were confusing, Lifetime tax rate is different than death tax, and you taxed @ 40% in lifetime. NRB in 2009 was different than its 2016. You said there is no DTR whereas clearly in the question, tax rate of overseas country was given. 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. You did not explain how much interest will be charged, it clearly shows you don’t know when it was due. There was no further tax on shares on death as it was 7 years old, you did not mention it. You have deducted NLB twice and I do not seem to understand why. Please write slowly and cross reference your workings. Present your answer in professional way, assume you are presenting this report to your senior in Tax practice firm, that’s what examiner expect you to do, you answers are very hard to understand and relate.
Your Total marks in this question are 2 out of possible 20
Question 4:
- “Explain with support of calculations” means more explanation less calculation. You did only calculations that too wrong. It was very basic F6 level calculation enhanced with some P6 portion of Close companies. You messed up basic car benefit. Need revision. (0) marks in this part
- This was again about close company wining up and giving some dividend to shareholders and some building to participant. Your close company knowledge is very weak and needs revision. Capital gains tax is also weak. There will be CGT on building but not @ 28% . You gained (1) mark here.
- Your calculation of CT liability was totally wrong, which shows you have no grip on CT too. You scored (2) marks for some point. Deficit on Non Trade loan relationship is omitted, double tax relief, calculation of value of shares, chargeable gain, were all wrong. You are given (2) for knowing very basic F6 level knowledge of CT.
Your Total score in this part is 3 out of total 20
Unsuccessful Attempt
Score: 17
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. Your knowledge about P6 is very very weak & needs time. Your writing and presentation of answer is so poor and difficult to mark. Please write slowly and cross reference everything, make marker’s life easy, you script took more than double time to mark than other candidates which shows how frustrating it will be for ACCA marker. Please present your answer well.
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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