Home Forums Query re Cii answers

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  • Tessa Roberts
    Keymaster
    Post count: 2195

    It’ll relate to the reinvested proceeds – is the collective portfolio still within the 2010 trust?

    Tessa.

    Tutor for Expert Pensions.

    Tessa Roberts
    Keymaster
    Post count: 2195

    The effective rate is the outcome of the periodic charge – it’s then applied to the exit charge.

    Tessa.

    Tutor for Expert Pensions.

    Tamnnaj
    Participant
    Post count: 83

    It could be that – that the colleectives are part of the trust as it states the trustees encashed and reinvested… What d’you think? I’ve attached a snippet for you – hopefully you can read it ok

    I feel like I’m gonna trip myself up in the exam 🙁

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    Tamnnaj
    Participant
    Post count: 83

    Hi Tessa

    All understood re effective rate, just didn’t understand why it formed part of the periodic charge answet and then the rate was used to recalculate the periodic charge itself! I’ve attached a snippet for your reference: hopefully you can read it ok

    I was following your notes on page 170 which was perfectly clear to me.

    Tamnna

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    Tamnnaj
    Participant
    Post count: 83

    I was just working on April 2019 Q1c – could you help me with calculating the regaining of £5,600 personal allowance please?

    I initially thought it was £9,350 i.e. £11,850 less £5k/2=£2.5k (this based on salary only)

    And then I thought it would be £133k-£21k-£100k = £12k/2 =£6k therefore personal allowance of £11,850-£6k =£5,850 (based on total taxable ncome)

    confused dot com :s

    Tamnna

    Tessa Roberts
    Keymaster
    Post count: 2195

    Yes – the collectives are therefore still within the trust so that explains that one.

    As for the effective rate – I guess it’s just a case of that’s that the CII are after…

    Tessa.

    Tutor for Expert Pensions.

    Tamnnaj
    Participant
    Post count: 83

    Hi Tessa

    Re above – Would you be able to confirm re my query on the personal allowance in April 2019 Q1c please?

    Thanks
    Tamnna

    Tessa Roberts
    Keymaster
    Post count: 2195

    Sorry – looks like our last two posts crossed so I missed it.

    Her bonus is £21,000.

    Income drops to £133,500 – £21,000 = £112,500.

    £12,500 in excess of £100,000. / 2 = £6,250.

    £11,850 – £6,250 = £5,600.

    Tessa.

    Tutor for Expert Pensions.

    Tamnnaj
    Participant
    Post count: 83

    No worries all good thanks Tessa and for all your help throughout…here goes tomorrow (big deep breath with all fingers & toes crossed not to say eyeballs too after all the reading today! 😮 lol)

    KR
    Tamnna

    Tamnnaj
    Participant
    Post count: 83

    Hi Tessa

    Wonder if you could help me please?

    On April 2018 exam guide, question 2 (a) is about income tax

    Can you confirm please:
    -how the chargeable gain is calculated ?- I calculated it as £62,658
    -why in a tax year is the salary being pro-rata’d? – surely there’d be 12 months worth of salary from 1 May 2017 to 1 April 2018
    -how is the tax on the bond top sliced gain being computed? – I calculated a top slice gain of £4,820 of which £2,400 is taxed at HRT

    On April 2019 exam guide, answer to question 1 (g) does not consider the new top slice relief menthod. Any ideas whether that answer would continue to achieve maximum marks going forward?

    Thanks
    Tamnna

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