p6uk-2013-dec-q.pdf

Professional Level – Options Module Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections: Section A – BOTH questions are compulsory and MUST be attempted Section B – TWO questions ONLY to be attempted Tax rates and allowances are on pages 2–5 Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. Pa pe r P 6 ( U K ) Advanced Taxation (United Kingdom) Friday 6 December 2013 The Association of Chartered Certified Accountants SUPPLEMENTARY INSTRUCTIONS 1. You should assume that the tax rates and allowances for the tax year 2012/13 and for the financial year to 31 March 2013 will continue to apply for the foreseeable future unless you are instructed otherwise. 2. Calculations and workings need only be made to the nearest ￡. 3. All apportionments should be made to the nearest month. 4. All workings should be shown. TAX RATES AND ALLOWANCES The following tax rates and allowances are to be used in answering the questions. Income tax Normal Dividend rates rates % % Basic rate ￡1 – ￡34,370 20 10 Higher rate ￡34,371 – ￡150,000 40 32·5 Additional rate ￡150,001 and over 50 42·5 A starting rate of 10% applies to savings income where it falls within the first ￡2,710 of taxable income. Personal allowances ￡ Personal allowance Standard 8,105 65 – 74 10,500 75 and over 10,660 Income limit for age related allowances 25,400 Income limit for standard personal allowance 100,000 Car benefit percentage The relevant base level of CO2 emissions is 100 grams per kilometre. The percentage rates applying to petrol cars with CO2 emissions up to this level are: % 75 grams per kilometre or less 5 76 grams to 99 grams per kilometre 10 100 grams per kilometre 11 Car fuel benefit The base figure for calculating the car fuel be