Use clear and specific language. © GTG 2. Structure your answers in a paragraph format. <Student Name>_<Paper Name>_<Page No> 2. at the top of each page of answer sheet i. put all the image files into one combined PDF file. paper no. This is because ACCA marks the answers online by the scanning method and any colour other than black is not recognisable. Do not write anything on the left and the right margins of each page.F6. 5.1 Performance analysis. 8. fountain pens. 10. Scanning instructions 1. Number your working notes clearly. Write in a legible and neat handwriting. Use only black pen when answering the mock exam. 6. 3. 4. Try to give headings wherever possible. Pencil. Circle the question number: For example. Q. 7. Zip the image files / PDF files before attaching to the mail. Answers that are not handwritten will not be corrected. Avoid spelling mistakes. Scan the answer sheets in JPEG format images. Mock answers need to be strictly handwritten. 9. Start each question on a new page and write the question number in the section at the top of the page. 4. gel pens and coloured pens (including highlighter pens) should be avoided. Avoid congested writing. Write your name. and page no.2: Mock Paper Instructions for students regarding mock exams Writing instructions 1. If possible. 3. Strike out incorrect answers rather than using correction fluid.e. .

3 Paper F6 TAXATION (UK) GTG Student No _______________ Name: ___________________ Company Address: ___________________ Exam date ___________________ Received Country: ___________________ Returned Marker _______________ _______________ TOTAL SCORE _______ Detailed commentary Max score _______________ _______________ _______________ Question No. 1 Score Performance / Comments 2 3 4 5 o o IMPORTANT: DETACH THIS SHEET AND AFFIX IT TO YOUR SCRIPT YOU ARE ADVISED TO PHOTOCOPY YOUR SCRIPT BEFORE SENDING THE ORIGINAL IN FOR MARKING .© GTG Mock Paper: F6.

There are two lower rates for cars with low CO2 emissions: 5% for cars with CO2 emissions of 75 grams per kilometer or less and a rate of 10% for cars with CO2 emissions rate between 76 and 120 grams per kilometer.640 22.000 £3. Car Fuel Benefit The base figure for calculating the car fuel benefit is £18.900 100.000 miles Capital Allowances % Plant and Machinery General pool: Writing down allowance Special rate pool Motor cars CO2 emissions up to 110g/Km CO2 emissions between 111 and 160g/Km CO2 emissions over 160g/Km Annual investment allowance (for the first £100.£150.440 of taxable income.000 £150.475 9.001 and above A starting rate of 10% applies to savings income where it falls within the first £2.F6. Pension Scheme Limits Annual allowance The maximum contribution that can qualify for tax relief without any earnings is Authorised mileage allowances: cars Up to 10.4: Mock Paper The following tax rates and allowances are to be used in answering the questions: Income Tax Normal rates % 20 40 50 Dividend rates % 10 32.490 9. Personal Allowance £ Personal allowance (Standard) Personal allowance aged 65 to 74 Personal allowance aged 75 and over Income limit for age related allowances Income limit for standard personal allowance Car Benefit Percentage The base level of CO2 emissions is 130 grams per kilometer.000 miles Over 10.5 42.5 © GTG Basic rate Higher rate Additional rate £1 – £37.000 .000 of expenditure) Industrial buildings Writing down allowance 20 10 100 20 10 100 1 40p 25p £255.600 6.000.401 .400 £37.

0% 0.000 £1.100 £5.0% 3.5% .£325.500.000 £1.715 per year £5.5% 20.000 10% 17.0% £70.000 £68.876 and above per year £1 – £5.716 – £43.0 Nil 12·8 12·8 Nil 8·0 1·0 Class 1 Employer Class 1A Class 2 Class 4 Rates of interest (assumed) Official rate of interest Rate of interest on underpaid tax Rate of interest on overpaid tax 4.875 per year £43.715 per year £5.875 per year £43.000 7/400 2009 21% 28% £300.000 £1.000 2008 21% 28% £300.000.© GTG Corporation tax Financial year Small profits rate Main rate Lower limit Upper limit Standard fraction Marginal relief Standard fraction x (U – A) x N/A Value added tax Standard rate: up to 3 January 2011 from 4 January 2011 onwards Registration limit Deregistration limit Capital gains tax Rate of tax Lower rate Higher rate Annual exemption Entrepreneurs' relief: Lifetime limit Rate of tax Inheritance tax Tax rates £1 .5 National insurance contributions (Not contracted out rates) Class 1 Employee £1 – £5.715 per year £5.000 Excess: Death rate Lifetime rate Taper relief Years before death Over 3 but less than 4 years Over 4 but less than 5 years Over 5 but less than 6 years Over 6 but less than 7 years Over 7 years Percentage reduction (%) 20 40 60 80 100 Nil 40% 20% 18% 28% £10.716 and above per year £2·40 per week £1 – £5.000 7/400 Mock Paper: F6.876 and above per year % Nil 11·0 1.500.000 7/400 2010 21% 28% £300.716 – £43.500.

and £3.605 3.850 4.010 for entertaining employees.900. (v) Wages and salaries This includes a salary of £20. (ii) Professional fees include the following: £1. (vii)Private house Forrest uses one of the six rooms in his house as an office.225.000 miles of which 40% was for private travel.620 5. She works in the shop as a sales assistant. 40% of this related to business telephone calls.230 58.085) 60. The cost of the home telephone is not included in the income statement.000. £85 as a donation to a political party and £2.780 £ 210.000 paid to Forrest’s wife.350 for personal financial planning advice £750 for debt collection (iii) Repairs and renewals This is made up of £855 for repairing the fence.865 . This cost is not included in the income statement.6: Mock Paper © GTG 1. Forrest drove a total of 20.120 4. 1.730 (150.920 for entertaining suppliers and £2. The total running costs of the house for the year were £12. £845 for Forrest’s health club subscription.750 for making a general provision for repairs. (viii) Private telephone The total cost of Forrest’s home telephone for the year was £2.930 71. His income statement for the year ended 5 April 2011 is as follows: £ Gross profit Expenses Depreciation Motor expenses (note 1) Professional fees (note 2) Repairs and renewals (note 3) Entertainment expenses (note 4) Wages and salaries (note 5) Other expenses (note 6) Net profit The following information is relevant: (i) Motor expenses During the year. Other sales assistants doing the same job are paid an annual salary of £15. (vi) Other expenses These include £325 for a wedding present to an employee. Forrest Gump is a self-employed trader.F6.000 for a trade subscription.330 for accountancy £1. (iv) Entertainment This is made up of £1.

(7 marks) (30 marks) 2. Snapshot Ltd has purchased the following assets during the accounting period: £ 25.550 15 May 2010 20 August 2010 12 September 2010 10 November 2010 25 December 2010 6 January 2011 22 January 2011 24 January 2011 Office Furniture Motor Car (1) with CO2 emission rate of 192g/km Motor Car (2) with CO2 emission rate of 148g/km Motor Car (3) with CO2 emission rate of 105g/km Equipment Freehold office building Machinery Building alterations necessary for the installation of the machinery .000 54. (9 marks) (b) Calculate Forrest Gump’s income tax and capital gain tax liability for 2010-11.300.500. During 2010-11. These were the actual cash amounts received.800 and dividends of £4.800 19. The following information is available for the year ended 31 March 2011: Trading loss The trading loss is £8. Forrest contributed £200 per month (gross amount) into a personal pension scheme.7 During the year ended 5 April 2011.300 15. and no entry has been made in the accounts to record this. Forrest sold some investments during 2010-11 which resulted in a capital gain of £12. Interest paid (gross) on this loan during 2010-11 is £240. Snapshot Ltd is a manufacturer of digital cameras.250.000 7. Required: (a) Calculate Forrest Gump’s tax adjusted trading income for the year ended 5 April 2011. (x) Other information Forrest has a part-time job as a business consultant. (3 marks) (d) Calculate Forrest’s balancing payment for 2010-11 and his payments on account for 2011-12 along with the relevant due dates.200 275. Forrest’s payment on account of income tax in respect of 2010-11 totalled £25. There is no need to calculate NIC in respect of part-time employment. Forrest received building society interest of £2.800 18.800. The goods cost £850. he received a monthly salary of £1. This figure is before accounting for capital allowances. (11 marks) (c) Calculate total NIC due from Forrest in respect of his trade for 2010-11.900 9. and have a selling price of £1.© GTG (ix) Goods for own use Mock Paper: F6. Plant and machinery The tax written down value of plant and machinery on 1 April 2010 was £30. Income tax deducted under PAYE from this income during the year is £4.000. During 2010-11.500.320. Forrest took out a loan on 6 April 2010 to purchase equipment for use in his part-time employment. Forrest took goods out of the shop for his personal use without paying for them.314. Also advise Forrest on the consequences of not making the balancing payment for 2010-11 until 31 August 2012.

8: Mock Paper Snapshot Ltd makes a short life asset election for the equipment purchased on 25 December 2010. Loan interest received Received on 30/9/2010 Accrued till 31/03/2011 £9. with Snapshot Ltd receiving a premium of £45. Picquick Ltd made a bonus of 1 share for every 4 shares held.8).000 from Pixell Ltd. © GTG In March 2011. acquired on 1 July 2010. Dividends received During the year ended 31 March 2011. The property was immediately sub-let to a tenant. The cost of the new freehold office building purchased on 6 January 2011 was made up as follows: £ 245. which was not required for business. The original cost of that equipment was £11. It had originally purchased 50. Snapshot Ltd paid a premium of £120. Snapshot Ltd had unused capital losses of £5.1) for £40. Snapshot Ltd received dividend amounting to £27. calculate the company’s corporation tax liability for the year ended 31 March 2011.F6.000 as on 1 April 2010. Other information Snapshot Ltd has two associated companies. Required: (a) Calculate Snapshot Ltd’s tax adjusted trading loss for the year ended 31 March 2011. 15 marks (25 marks) .400 Office building Electrical and lighting systems Fire alarm system Escalators Property Income Snapshot Ltd let out a leasehold warehouse.000 from Photo Smart Ltd. Snapshot Ltd sold equipment for £5.800 £4.500 which was payable in advance.4). On 15 October 2006 (RPI 200.37 CTA 2010. an unconnected UK company and £18.000 shares in Picquick Ltd on 20 June 1991 (RPI 134.000 shares in Picquick Ltd for £250. Chargeable Gains Snapshot Ltd sold 30.year lease.000.000 for granting a five-year lease and the annual rent of £17.000 to obtain a twenty.600 15.800 8.800 from the general pool. 10 marks (b) Assuming that Snapshot Ltd claims relief for its trading loss against total profits under s.500 The loan was made for non-trading purposes.200 5.200. Both the figures indicate the actual amount of cash received. a 100% UK subsidiary company of Snapshot Ltd.000 on 25 April 2010 (RPI 222.

at which time the following assets were sold to Lilly: (i) A freehold shop with a market value of £450.000. She made no other capital disposals in the tax year 2010-11.a.© GTG Mock Paper: F6. The taxable income of Carol for the tax year 2010-11 is £28.000 Purchased 2. She was in the USA for 2 years and 7 months before coming back to Wick on 31 January 1990 to start her own business. as a partnership. (iv) On 1 May 1981.000. The shop had been purchased on 1 July 2006 for £225. Lilly paid Carol £300.200 £2.000 shares for £15.000.a.000 for the warehouse.000 51.550. 25% of the property was used for business purposes. (15 marks) 4. on 1 May 2007. aged 72. Lilly paid Carol £285. Carol had purchased a residential property in Wick for £28. On 1 July 1987. she left to start a new job in the USA.000 shares for £12. Harry joined the partnership and they decided to share profits on the following basis: Salary p.800 Interest p. (iii) Carol had also entered into the following transactions relating to the sale and purchase of shares of Dallas Ltd.300 £4. preparing accounts up to 31 December annually.000 shares for £45. On 1 June 2009. £6. She had losses brought forward of £18. Required: Calculate Carol’s capital gains tax liability for the tax year 2010-11 and state when the tax is due.000 and has never been used by Carol for business purposes. Tom and Dick started a business.000 .000 Purchased 1.000. On 1 October 2010.000 Carol was working as a manager in Dallas Ltd and also held 65% of the shares of the company. Carol Gracious. she sold her house in Wick for £58.000 70.000 shares for £8.400 £2. Carol and Lilly have elected to hold over any gains arising. Where possible. has been in business as a sole trader since 1 April 1990.000 40.9 3. she started using her house for both domestic as well as business purposes. They decided to share the profits and losses equally. £1.000. On 31 March 2011.400 Balance profit 2/5 2/5 1/5 Tom Dick Harry The firm’s adjusted trading profits are as follows: £ Period ended 31/12/2007 Year ended 31/12/2008 Year ended 31/12/2009 Year ended 31/12/2010 25. she transferred the business to her daughter Lilly. (ii) A freehold warehouse with a market value of £375. After coming back from the USA.000 Sold 5. an unquoted trading company: 5 June 2000 25 April 2008 20 May 2008 20 February 2011 Purchased 4.750. She occupied this house until 30 June 1987. The warehouse had been purchased on 1 April 1991 for £135.000 for the shop. and has always been used by Carol for business purposes.

The company started business on 1 May 2010. and is in the process of completing its VAT return for the quarter ended 31 December 2010. (3 marks) (15 marks) 5.200 13.10: Mock Paper Required: (a) Show the allocation of the trading profits between the partners.200 6. © GTG (6 marks) (b) Show the trading income assessment for each partner for all relevant years (6 marks) (c) Show the amount of overlap profits for each of the partners. On 15 December 2010. (3 marks) Explain the VAT implications if Wonderful Ltd offers a 3% discount for prompt payment to VAT-registered dealers.320 Standard rated sales to customers not registered for VAT are inclusive of VAT. The company was registered for VAT in January 2011. explaining your reasons in your answer. The purchase was partly financed by a bank loan of £6. ii.000. Sales invoices issued to customers not registered for VAT: for standard rated sales £21. and the period during which such an invoice should be issued.600 13.950 At the time of registration.740 8. the company’s turnover exceeded £70. the company purchased equipment for £8.300 13. iii.600 for zero rated sales £6. This purchase is standard rated.260 4.500. A list of the company’s purchases of spare parts for resale since formation is as follows: Month May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 £ 3. The company issued the following sales invoices: i. Required: (i) (ii) Calculate the amount of VAT payable by Wonderful Ltd for the quarter ended 31 December 2010. (3 marks) .200. (3 marks) (b) Sunrise Ltd deals in spare parts for machinery.820 6. (a) Wonderful Ltd is registered for VAT. the company had inventory of £24. (2 marks) (iii) State the circumstances in which Wonderful Ltd is and is not required to issue a VAT invoice. Required: (i) State the amount of input VAT the company can claim after it becomes registered for VAT. Sales invoices issued to VAT registered dealers for standard rated sales £58.500 in hand.000.F6. In the month of December 2010.

11 (c) Hopes Ltd commenced trading on 1 July 2010.200 23. Its forecast sales are as follows: £ 2010 July August September October November December 2011 January February March 3.200 4. and the above figures are exclusive of VAT.300 13.200 The company's sales are all standard rated.© GTG (ii) Mock Paper: F6.700 15.200 14. (4 marks) (15 marks) .600 5.300 13. Required: Explain when Hopes Ltd will be required to compulsorily register for VAT. and when the registration will be effective from.300 19.

12: Mock Paper © GTG .F6.

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