Part (b) of this question tested the income tax implications of a very commonly provided taxable benefit – a company motor car.

This is essentially brought forward knowledge from F6, but there were quite a lot of details to assimilate, and the majority of candidates did not take all of these into account.

A candidate must ensure that all aspects of each scenario are considered.

In particular, the car was to be provided for a three-year period, before being transferred to the employee.

The majority of candidates focused on the annual benefit calculation, but failed to consider that this situation would apply for three years, and then recognise the impact of the transfer.

This is what essentially distinguished this as a P6 question – the ability to ‘see the full picture’ and advise on a holistic basis, taking into account all relevant details within a scenario.

Candidates should be prepared for more questions of this style in future exams.