FTC Exam Tips for P6 Advanced Taxation June 2008

Tips include:
  • Corporation tax including IBA, loss relief (S393A), group and consortium relief, overseas subsidiaries, group gains and VAT
Key scenarios:
One or more of the following is likely to feature on the exam:

  • CGT vs IHT for lifetime gifts
  • Employed vs self-employed (IT and NICs)
  • Badges of trade (IT vs CGT)
  • Employee vs partner (IT and NICs)
  • Extraction of funds from company: salary vs dividend (IT, NICs, Corp. Tax)
  • Incorporation (IT, NICs, VAT, CGT), perhaps with incorporation relief vs gift relief
  • Comparison of employment packages and benefits (eg. cash vs car, share options vs bonus)
  • Corporation tax disposal of business: sale of shares vs sale of assets
  • Close companies - maybe a letter on this.
  • VAT cash accounting scheme, annual accounting scheme, due date for registration.
  • Financial planning sources of finance, lease versus buy, investments including EIS vs VCT, the Financial Services and Markets Act 2000, pensions

NOTE: These exam tips should only be used in conjunction with proper studying. We cannot guarantee that these tips will appear in the actual exam as we have not seen the exam papers.