AF8 - Tax year query

elspel

I'm wondering if anyone with any experience of AF8 can help please, or tell me if I'm overthinking it!

I subscribed and did my first assignment pre April 2024, so 2023.24 tax year. I'm now on assignment 2 and wondering that because I'm submitting it in the 2024.25 tax year, do I now base my answers on current 2024.25 allowances?

Specifically for example, in assignment 1 I made reference to CGT and dividend allowances based on 2023.24. However with these now having reduced in 2024.25, do I need to complete assignment 2 on the new allowances, or will the examiner look at allowances I'm using based on my enrolment start date (2023.24) and work on these?

One further question - the FF I have mentions that the clients utilised their ISA allowances, but as we're now in a new tax year, can I assume they haven't? The assistance on RevisionMate mentions to base answers on information in the FF, which would be that they have used it.

High chance I'm overthinking it, but any input or experience would be appreciated as the CGT, dividend and ISA allowances I'm assuming will all have an impact on my output!

elspel

UPDATE - I've spoken to a colleague today who has previously done AF8 and she is of the impression that as the FF I have is dated 2023/24, I should be fine to base my assignment and calculations on 2023/24 allowances, but did caveat and say that I should cover off at the beginning of the assignment that this is the tax year I am using.

Has anyone else done this previously and are you able to confirm whether this was acceptable to the examiner?

Wildparaplanner

With mine - i laid out some assumptions in the appendix, including tax year assumptions as well as legislation assumptions. I passed so i never got any direct feedback on whether this was appropriate or not.

For example, at the time, I said that the (now reversed) 1.5% increase to NI that was due in 2022/23 tax year was ignored (my syllabus was for the 2021/22 tax year)

elspel

@Wildparaplanner said:
With mine - i laid out some assumptions in the appendix, including tax year assumptions as well as legislation assumptions. I passed so i never got any direct feedback on whether this was appropriate or not.

For example, at the time, I said that the (now reversed) 1.5% increase to NI that was due in 2022/23 tax year was ignored (my syllabus was for the 2021/22 tax year)

Thank you - I have fired the question off to the CII, however in the interim have found a small bit of wording at the front of the text book stating 'legislation and tax year based upon date of submission' which answers my queries! I feel they should definitely make it clearer for those of us that overthink though

elspel

UPDATE: For anyone reading this at a later date, I've had the below from the CII today:

Thank you for your query. We appreciate that candidates start work on their assignments at different points during the tax year. It is perfectly acceptable to use the regulations and tax rates in force for the previous tax year (2023-24) or the new tax year (2024-25). You will not be penalised in any way, based on your choice of tax year. Either tax year is perfectly acceptable but please make sure that you identify your chosen tax year at the start of your assignment so the examiners can understand which tax rates you have chosen to use.

You should assume that the Fact Find was completed on the day that you started work on your assignments.

We wish you every success with your submission.

Kind regards,