Answers

475. 7B Current year capital losses must always be used in full against the current year capital gains.475 £4. £26. Therefore the maximum carry back is the total profits in the year to 31 December 2009 i. 2D The standard personal allowance is reduced by £1 for every £2 that a taxpayer s adjust ed net income exceeds £100. This is less than the loss remaining. against total profits (i. The PLR in this instance is 40% x £8. Therefore in this case the return for the chargeable period ended 31 December 2010 must be submitted by 31 012. of £30. The penalty is therefore 30% x £3.e. 8D The rate of tax to be applied to gains qualifying for entrepreneurs relief is 10% .e.000/2 = £4. A company is permitted to carry back 12 months only. 3B The maximum penalty for a careless error is 30% of the potentially lost revenue (PLR). Therefore the tax payable in this instance is £16. one first 12 month period and one for the remaining period.000 must be used first and only £2. following the current year claim.200.900 of the brought forward figure need be used.000. Therefore in this case the 14th January 2011.ACCA Certified Accounting Technician Examination Paper T9 (UK) June 2011 Answers Preparing Taxation Computations (UK Stream) and Marking Scheme Section A 1A The employer must submit the P35 along with copies of the P14 by 19 May followin g the end of the tax year concerned.000. This is applied after the deduction of the annual exemption.000 = £3. b efore gift aid payments). resulting in a standard personal allow ance of £6. 4C A company must make a current year loss claim against total profits if it wishes to make a claim to carry a loss back. Each return is due 12 months after the end of the long of account.100.000 = £2.200 = £960. If the period of account exceeds 12 months two returns are required. Therefore the reduction is £8.990 ((£180.0 00.000 £10 .000. 12 mont for the period March 2 6C The final instalment for a large company is always due on the 14th of the fourth month after the end of the chargeable accounting period. If capital losses are brought forward then they must be used against the first available capital gains after t he current year losses and then only enough to reduce the current years net gains to the annual exemption limit of £10. Theref ore in this case the £3. 5A The tax return must be submitted to HM Revenue and Customs (HMRC) within hs of the end of the period of account.

The due date in this instance is 10 October 2010. therefore t he VAT can be reclaimed in the quarter ended 30 June 2011. 10 C The value added tax (VAT) on an impaired debt may only be reclaimed once the deb t has been outstanding for six months from the due date.000 (the future test). HM Revenue an d Customs (HMRC) will then register the trader from the first day of that 30-day period.. In this instance 1 January 2011 .100) x 10%) 9B A trader will be liable to register for value added tax (VAT) when he is aware t hat his taxable turnover during the next 30 days will exceed the VAT registration limit of £70. 2 marks each 20 15 .

000) £2.600 1·5 September to March only x 7/12 £933 0·5 * Market value when first provided to any employee Mileage allowance Amount received from employer: 14.160 (2.300 0·5 .Section B Marks 1 (a) (i) Amar Benefits for the tax year 2010 11 Flat Annual value Additional benefit: (£310.860) £1.350 (1.400) £5.600 September to March only x 7/12 Contribution £200 x 7 7.200 9.000) (1.000) x 4% £ 3.950 1 1 * Amar first occupied the flat more than six years after the company purchased t he property. Furniture £8.000 0·5 0·5 0·5 Parking space Exempt 1 Childcare vouchers Amount received from employer: £40 x 2 x 52 Amount exempt: £55 x 52 £ 4.400 0·5 1·5 12.000 miles x 40p Next 4.000* £75.000 x 50p Authorised mileage allowance: First 10. therefore the market value is used to calculate the benefit.000 miles x 25p £ 7.000 (4.000* x 20% 1.

1 10 (ii) Revenue form Due date P11D 6 July 2011 1 1 2 (b) (i) Ivan Income tax for the tax year 2010 11 Trading profit Property business income (£6.000 3.600 x 100/80) Nonsavings income £ 160.000 £2.000 170.000 Total income £ 0·5 1 0·5 1 1 Standard personal allowance* 163.500 2.800 x 100/90) Building society interest (BSI) (£3.600 Savings income £ 4.100 nil .600 nil 4.500 Dividend income £ 2.400) Individual savings account (ISA) interest exempt UK dividends (£1.

Taxable income 163.000 170.100 * Adjusted net income is above £112.500 2.600 4.950 and therefore the standard personal allowa nce is reduced to nil 0·5 16 .

560 0·5 112.200 x 50% 6.800 1 Purchases: Machine 100.500 x 50% 2.000 503.Marks Extension of basic rate band: £37.000 only £5.000) 1 Computer (4.161 not on other income .800 x 20% 7.400 13.000 1 Disposals: Machine (35.040 0·5 150.600 0·5 Savings income 4.400 + (£320 x 100/80) = £37.200 10 (ii) Ivan £ £ Class 2: £2·40 x 52 Class 4: On trading (£43.339 4 26 2 (a) Violet Ltd Capital allowances for the year ended 31 March 2011 Annual Short investment Main Special life Capital allowance pool rate pool asset allowances £ £ £ £ £ Balances brought forward 440.200) Annual investment allowance (100.600 x 40% 45.000 1 Director s car 25.800 1 Extension of higher rate limit: £150.300 Tax deducted at source: Dividend credit (£2.000 1 Employees car 18.000 0·5 Writing down allowance 20% (100.000) 100.250 0·5 Dividend income 2.400 1 £ £ Tax payable: General income 37.600) 100.500 x 20%) (900) 0·5 61.000) 1 100.875) x 1% 1.000 80.715) x 8% 3.000 25.053 1·5 £43.000 + (£320 x 100/80) = £150.000 (1.875 (£160.214 Total national insurance contributions 4.000 2.000 x 10%) (200) 0·5 BSI credit (£4.000 x 42·5% 850 0·5 62.600 0·5 National insurance contributions for the tax year 2010 11 weeks 125 1 profit of £160.000 1·5 4.

200 (1.200) 1 Balances carried forward nil 402.10% (2.500* 1 Balancing charge 1.900 9 * There is no adjustment for the private use by the director 17 .500) 2.500 nil Total capital allowances 201.400 22.

000/2 = £750.500.000 1 Augmented profits 670.000 x 1% (2.000 x 100/90 10.000 0·5 Chargeable gain 15.000 0·5 Non-trade interest paid (4.Marks (b) Indigo Ltd Corporation tax for the year ended 31 March 2011 £ £ Adjusted trading profit (working) 630.000 £670.800 1 (£750.000 Property business loss brought forward (8.000) 1 630.000 x 28% 184.000 0·5 Non-trade interest received 20.000) 1 Capital allowances (28.000) 0·5 Industrial buildings allowance £200.000) x £660.000) 1 Taxable total profits 660.000 0·5 668.000 Property business income 10.000 0·5 Tax payable £ £660.000) 12.000 x 7/400 (1.000 * Dividends received from Purple Ltd are ignored because they are from an associ ated company 1 Tax limits: £1.000/2 = £150.000 0·5 £300.421 Tax payable on 1 January 2012 1 Working £ Profit before interest and capital allowances 700.000 0·5 Capital loss brought forward (3.000) 16.379) 1·5 £670.000 13 22 18 .000 0·5 Trading interest paid (40.000 Franked investment income (FII) Orange Ltd only* £9.000 183.

500 11.000 0·5 Cost (22.000 0·5 5.000 Capital loss brought forward (2.200) 0·5 16.000 Rights issue 10.000) (22.000 0·5 Expenses of sale (1.000 Gain: £ Proceeds 40.864) 13.000 £18.000 1 Cost (8.000 + £70.000 Disposal (5.000 (2.000 Field £ Proceeds 18.936 1·5 Privately owned painting £ Proceeds market value 12.000) 0·5 4.000 9.000 x £18.000) 0·5 furniture of historic interest donated to the nation 1 1 for 2 x £4 2.000 14.800 Cost £14.000 23.Marks 3 (a) Tanya Capital gains for the tax year 2010 11 Shares Pool: Shares Cost £ May 2006 1.000 Desk Exempt 9 (b) Beth Capital gains tax for the tax year 2010 11 £ Gains 19.000 0·5 June 2007 4.500 33.000) 0·5 18.000) 1 2.500 .000 1 7.

400 x 18% £2.400 £ 792 0·5 700 0·5 £33.100) 0·5 Chargeable gains 6.492 Due date of payment: 31 January 2012 1 4 19 rate band: £37.500 x 28% 1.000 = £4.900 Unused basic Tax payable: £4.000 Annual exempt amount (10.17.400 1 .

000 8.000 2010 11 £ nil 4.000 (12.475) .000 Standard personal allowance 20.000) 1 0·5 Gift relief: £16.(c) Kate Chargeable gain for the tax year 2010 11 Marks Deemed proceeds market value Cost £ 28.000 Gain chargeable now 3.000 (12. 2009 10 and 2010 11 Trading profit Property business income 2008 09 £ 12.000 (12.200 1 Revised base cost: Deemed cost market value Gift relief £ 28.000 (6.000 6.000 x £480.000 2009 10 £ 8.200 1 5 18 4 (a) Tonto (i) Tax payable for the tax years 2008 09.800) 15.000 16.800) 1·5 £600.

475) 1·5 1·5 13.525 7. is: The supplier s name and address The supplier s VAT registration number The date of the supply A description of the goods or services supplied The rate of VAT charged The amount chargeable inclusive of VAT 1 mark for each with a maximum of 5 .000 1 0·5 3 (iii) Refund of tax for 2009 10 £1.000 (6.14.000 relief claims for the tax years 2008 09.505 nil 1 4 (ii) Loss Loss used Loss used Nil the £14. which must be included on a less detailed invoice.505 1 (b) Value added tax (VAT) less detailed invoices (i) The maximum amount for which a less detailed value added tax (VAT) invoice m ay be issued for is £250 inclusive of VAT. 1 (ii) The information. 2009 10 and 2010 11 in 2008 09 in 2009 10 loss can only be carried back one year 0·5 1 Loss used in 2010 11 Loss carried forward to 2011 12 Nil no claim required because the income is covered by the personal allowance £3.525 nil Tax at 20% £2.705 £1.475) 4.000 (6.

14 20 .