ACCA TX / Taxation FA2017 CBE Progress Test 2 (2018–2019) / Score 100% / 2025 Update / Exam Prep Guide

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ACCA - TX Taxation FA2017 - CBEs - 18-19 TX - CBE
Progress Test 2
Financial Accounting (University of Oxford)




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8/27/2018 ACCA - TX Taxation FA2017 - CBEs - 18-19: TX - CBE Progress Test 2



ACCA F6 Practice Test 2 FA17 (1117)
Question 1 of 25

Dylan put £270,000 into a trust on 2 February 2018. He had previously given £200,000 to
his brother on 24 October 2013 and had made another gift into a trust on 12 August 2015 of
which the gross chargeable transfer was £158,000.

How much lifetime tax is payable on the gift on 2 February 2018?

£66,000
£25,750
£24,250
£19,400

0 out of 2

The correct answer is: £24,250.

£
2.2.18 CLT 270,000
AE 17/18 (3,000)
16/17 b/f (3,000)
264,000
Nil band @ 17/18 325,000
Less GCT < 7 years from date of gift (158,000)
(167,000)

97,000 × 20/80
= 24,250

The answer £66,000 treats the PET as chargeable so the nil rate band is used up and the
tax is £264,000 x 20/80. The answer £25,750 does not deduct the annual exemptions. The
answer £19,400 uses the rate of 20%.




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8/27/2018 ACCA - TX Taxation FA2017 - CBEs - 18-19: TX - CBE Progress Test 2

Question 2 of 25

Fred was married to Ginger for many years and they had a daughter, Julie. Fred died on 30
April 2017 leaving the whole of his estate, including a main residence valued at £90,000, to
Julie.

Ginger died on 2 March 2018 leaving the whole of her estate, including a main residence
valued at £120,000, to Julie.

What is the available residence nil rate band on Ginger’s death?

£ 55

0 out of 2

The correct answer is: £110,000.

£
Maximum residence nil rate band
Own residence nil band 100,000
Unused residence nil band of Fred (100,000 – 90,000) 10,000
110,000
Available residence nil rate band
Lower of £110,000 and the value of Ginger's main residence £120,000 110,000




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8/27/2018 ACCA - TX Taxation FA2017 - CBEs - 18-19: TX - CBE Progress Test 2

Question 3 of 25

Tunbridge Ltd ceased trading on 31 December 2018, it had the following results:

31 31 31 31 31
December December December December December
Year ended
2014 2015 2016 2017 2018
£ £ £ £ £
Trading
2,000 4,000 3,000 5,000 (18,000)
profit/(loss)
Interest income 1,000 1,000 1,500 2,000 1,000

What is the unused loss at 31 December 2018?

£0
£500
£10,000
£17,000

0 out of 2

The correct answer is: £500.

Year ended 31 December
2014 2015 2016 2017 2018
£ £ £ £ £
Trading income 2,000 4,000 3,000 5,000 –
Interest income 1,000 1,000 1,500 2,000 1,000
Total profits 3,000 5,000 4,500 7,000 1,000
Current year relief (1,000)
(4) (3) (2) (1)
Carry back relief (5,000) (4,500) (7,000)
TTP 3,000 – – – –

£
Loss 18,000
Current year (1) (1,000)
Carry back (2) (7,000)
Carry back (3) (4,500)
Carry back (4) (5,000)
Remaining 500

The answer £0 allows carry back more than 36 months. The answer £10,000 only carries
back 12 months. The answer £17,000 sets off the loss only in the current period.




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