Taxation (TX)

This paper gives insight to a student about the advanced skills and knowledge which will be needed to lead the student towards P6 Advanced Taxation.

The Paper introduces the function of UK tax system. The syllabus then considers the separate taxes that an accountant would need to have a detailed knowledge of, such as income tax from self-employment, employment and investments, the corporation tax liability of individual companies and groups of companies, the national insurance contribution liabilities of both employed and self-employed persons, the value added tax liability of businesses, the chargeable gains arising on disposals of investments by both individuals and companies, and the inheritance tax liabilities arising on chargeable lifetime transfers and on death.

Having covered the core areas of the basic taxes, candidates should be able to compute tax liabilities, explain the basis of their calculations, apply tax planning techniques for individuals and companies and identify the compliance issues for each major tax through a variety of business and personal scenarios and situation

 Key areas of paper:

On successful completion of this exam, candidates should be able to:

• UK Tax system and the obligations of tax payers

•  The income tax liabilities of individuals and the effect of national insurance contributions (NIC) on employees, employers and the self-employed

• Chargeable gains arising on individuals and Companies

• Inheritance tax liabilities of individuals

• The Corporation tax liabilities of individual companies and groups of companies

• Value added tax on incorporated and unincorporated businesses