ACCA P6 Exam Tips:
ACCA P6 Advanced Taxation Exam Tips for June 2015 session are given as follows by famous tuition providers
– Corporation tax: Consortium relief/overseas aspects: CFCs/anti-avoidance: pre entry capital losses and trading losses.
– Capital gains: Reliefs – rollover, gift, disincorporation.
– Inheritance tax: BPR and APR/deed of variation.
– Income tax: Income tax comps at marginal rates/benefits – car.
– Personal financial planning: VCT and seed EIS.
– Trusts: Description and income tax aspects.
– VAT: Registration/pre-registration input VAT.
– Scenarios: Employed vs. self-employed/sole trader vs. company .
– Stamp duty and SDLT.
The exam will comprise two compulsory questions within Section A which will both be of a case study style. The first question will be 35 marks in length and will contain four marks for professional skills. The second will be for 25 marks in total and will contain no professional skills marks. One of these questions will focus on personal tax issues and the other will focus on corporate tax issues.
Section B will comprise three questions, each of 20 marks in length of which only two are to be answered. These will be in a more succinct, note form style.
The whole syllabus is examinable throughout the paper.
The paper will examine candidates’ ability to analyse and evaluate the tax implications of various situations, numerical calculations will only be required to assist in producing an answer and no purely numerical questions will be set.
Topics we would expect to see are:
– Groups of companies involving overseas aspects
– Unincorporated business particularly loss relief or involving a partnership
– Capital gains tax versus inheritance tax
– Overseas aspects particularly the new rules on residence
– Personal service company
– Company purchase of own shares
– Enterprise investment schemes/ venture capital trusts
– Change in accounting date
– VAT partial exemption
– Transfer of trade versus sale of subsidiary
– Disincorporation relief
– Pension contributions
- IHT with the death estate including BPR and APR and lifetime gifts into a trust.
- Company selling shares and the substantial share exemption or a company selling the trade and assets.
- Research and development expenditure for large companies.
- Badges of trade, partnership with a partner joining/leaving with opening year rules, choice of accounting date.
- Trading losses at the beginning of the trading cycle maybe in a partnership.
- Disincorporation relief.
- Personal pension schemes.
- SEIS, EIS and VCT conditions and tax advantages.
- Capital gains tax including entrepreneurs’ relief, shares matching rules.
- Group registration for VAT.
- Business property relief.
- Use of second spouse nil rate band.
- Related property.
- Groups of companies, trading and capital losses.
- Double tax relief for companies.
- De-grouping charges.
- Incorporation relief.
- Furnished holiday lets.
- VAT partial exemption.
- Appeals and the four track tribunal system.
- Benefits in kind or extra salary, income tax and national insurance implications.
Manchester Metropolitan University MMU