Principles of Taxation Study Guide 2018 PDF

The Institute of Chartered Accountants in England and Wales
PRINCIPLES OF TAXATION
For exams in 2018
Study Guide
www.icaew.com
Contents
1 Introduction 1
2 Principles of Taxation 2
3 Study guide 3
4 Syllabus and learning outcomes 18
5 Technical knowledge 21
6 Glossary of terms 31
1 Introduction
ACA qualification
The ICAEW chartered accountancy qualification, the ACA, is a world-leading professional qualification in
accountancy, finance and business.
The ACA has integrated components that will give you an in-depth understanding across accountancy,
finance and business. Combined, they help build the technical knowledge, professional skills and
practical experience needed to become an ICAEW Chartered Accountant.
Each component is designed to complement each other, which means that you can put theory into
practice and you can understand and apply what you learn to your day-to-day work. Progression
through all the elements of the ACA simultaneously will enable you to be more successful in the
workplace and exams.
The components are:
 Professional development
 Ethics and professional scepticism
 Three to five years practical work experience
 15 accountancy, finance and business modules
To find out more on the components of the ACA and what is involved in training, visit your dashboard
at icaew.com/dashboard
ICAEW Certificate in Finance, Accounting and Business
The ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB) teaches essential skills and
knowledge in the three key areas of finance, accounting and business.
ICAEW CFAB consists of the same six modules as the first level of our world-leading qualification, the
ACA. This means, it can serve as a stand-alone qualification or as a stepping stone on your journey
towards chartered accountancy.
You can find out more about the ICAEW CFAB exams and syllabus at icaew.com/cfabstudents.
To learn more about the ACA qualification and chartered accountancy, visit icaew.com/careers.
Key resources
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resources and services to help you in your studies. They can be found on our website. Depending on the
qualification you are studying, be sure to visit the specific area for you.
For dedicated exam resources, guidance and information for the ACA qualification, log in to your
dashboard at icaew.com/dashboard.
For everything you need while studying the ICAEW CFAB qualification go to icaew.com/cfabstudents.
If you have a question, our student support team is on hand to help and advise you throughout your
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speak to an adviser.
Study Guide 1
2 Principles of Taxation
The full syllabus and technical knowledge grid can be found within the module study guide. Visit
icaew.com/exams if you're studying the ACA or icaew.com/cfabstudents if you're studying ICAEW CFAB.
2.1 Module aim

To enable students to understand the general objectives of taxation and to calculate income tax,
national insurance contributions, capital gains tax, corporation tax and VAT in straightforward scenarios.
On completion of this module, students will be able to:
 explain the general objectives of taxation, the influences upon the UK system of taxation, the
different types of tax in the UK;
 recognise the ethical issues arising in the course of performing tax work;
 identify the obligations the UK system of taxation imposes on taxpayers and the implications of
non-compliance;
 calculate the amount of income tax owed by or owed to individuals and the amount of national
insurance payable;
 calculate the amount of capital gains tax payable by individuals and the chargeable gains subject
to corporation tax;
 calculate the amount of corporation tax payable by companies; and
 calculate the amount of VAT owed by or owed to businesses.
2.2 Method of assessment

The Principles of Taxation module is assessed by a 1.5 hour computer-based exam. 20% of the marks
are allocated from two scenario-based questions. These will each cover a single syllabus area: income tax
and NIC, and corporation tax. The remaining 80% of the marks are from 40 multiple choice, multi-part
multiple choice, multiple response or numeric entry questions. These questions will cover the remaining
areas of the syllabus in accordance with the weightings set out in the specification grid.
2.3 Specification grid

This grid shows the relative weightings of subjects within this module and should guide the relative
study time spent on each. In each assessment, the marks available will equate to the weightings below.
Weighting
(%)
1 Objectives, types of tax and ethics 10
2 Administration of taxation 20
3 Income tax and national insurance contributions 26
4 Capital gains tax and chargeable gains for companies 10
5 Corporation tax 14
6 VAT 20
100
3 Study guide
3.1 Help yourself study for your ACA exams
The right approach
1 Develop the right attitude
Believe in yourself Yes, there is a lot to learn. But thousands have succeeded
before and you can too.
Remember why you are doing it You are studying for a good reason: to advance your
career.
2 Focus on the exam
Read through the Syllabus in this This tells you what you are expected to know.
guide
3 The right method
See the whole picture Keeping in mind how all the detail you need to know fits
into the whole picture will help you understand it better.
 The Practical significance and Working context to
each chapter in the study guide put the material into
context.
 The Learning objectives and Section overviews in
the study manual show you what you need to grasp.
Use your own words To absorb the information (and to practise your written
communication skills), you need to put it into your own
words.
 Take notes.
 Answer the questions in each chapter.
 Draw mindmaps.
 Try 'teaching' a subject to a colleague or friend.
Give yourself cues to jog your The Study Manual uses bold to highlight key points.
memory
 Try colour coding with a highlighter pen.
 Write key points on cards.
4 The right recap
Review, review, review Regularly reviewing a topic in summary form can fix it in
your memory. The Study Manual helps you review in many
ways.
 Each Chapter Summary will help you to recall that
study session.
 The Self-test actively tests your grasp of the essentials.
 Go through the Examples in each chapter a second or
third time.
Study Guide 3
3.2 Study cycle
The best way to approach the Study Manual is to tackle the chapters in order. We will look in detail at
how to approach each chapter below but as a general guide, taking into account your individual
learning style, you could follow this sequence for each chapter.
Key study steps Activity
Step 1 This topic list is shown in the contents for each chapter and helps you navigate
Topic list each part of the book; each numbered topic is a numbered section in the
chapter.
Step 2 The practical significance and working context sections for each chapter, set
Introduction out in this study guide give you the big picture in terms of the context of the
chapter. The Examination context guidance shows what the examiners are
looking for and tells you why the topics covered in the chapter need to be
studied.
Step 3 Section overviews give you a quick summary of the content of each of the
Section overviews main chapter sections. They can also be used at the end of each chapter to
help you review each chapter quickly.
Step 4 Proceed methodically through each chapter, particularly focusing on areas
Explanations highlighted as significant in the chapter introduction or study guide.
Step 5 Take brief notes, if you wish. Don't copy out too much. Remember that being
Note taking able to record something yourself is a sign of being able to understand it. Your
notes can be in whatever format you find most helpful: lists, diagrams,
mindmaps.
Step 6 Work through the examples very carefully as they illustrate key knowledge and
Examples techniques.
Step 7 Check yours against the suggested solutions, and make sure you understand
Answers any discrepancies.
Step 8 Review it carefully, to make sure you have grasped the significance of all the
Chapter summary important points in the chapter.
Step 9 Use the self-test to check how much you have remembered of the topics
Self-test covered.
Step 10 Ensure you have ticked off the learning objectives.
Learning objectives
Moving on...
When you are ready to start revising, you should still refer back to the Study Manual.
 As a source of reference (you should find the index particularly helpful for this).
 As a way to review (the section overviews, examination context, chapter summaries and self-test
questions help you here).
Remember to keep careful hold of the Study Manual – you will find it invaluable in your work.
3.3 Detailed study guide

Use this schedule and your exam timetable to plan the dates on which you will complete each study
period below.
Revision phase – your revision should be centred around using the questions in the ICAEW Question
Bank.
Study Due
Period Practical significance Working context Approach Syllabus references and exam context Date
1 Ethics Ethical considerations underpin all of Ethics can be a very dry topic. The specific syllabus reference for this
your studies as well as your work The best approach is to read chapter is: 1g, h.
Belonging to a professional body requires
experience. the chapter in several short
adherence to a code of ethics. This is part of In the examination, in the objective test
sittings making notes on the
what differentiates a Chartered Accountant You will often make ethical decisions questions, students may be required to:
essential points as you go
from unqualified accountants. Clients, members without even realising it, but sometimes
along.  identify the five fundamental principles
of the public, and the government recognise you may find yourself in a quandary and
in straightforward scenarios and the
that we are required to adhere to exacting be unsure how to act. This is when the Finally, attempt the self-test
safeguards to be put in place when
standards and so expect a certain standard of Code of Ethics will be of assistance. questions at the end of the
these are threatened
behaviour from us. chapter.
You need to know what to look out for
Money laundering has been a major problem in and how to act. You should always take  demonstrate knowledge of the
the past and, to combat this, professionals are particular care in relation to client framework for ethical conflict resolution
required to participate in its prevention by confidentiality; not always an easy task.  determine which of the five
reporting certain suspicions relating to the fundamental principles conflicts of
proceeds of crime. interest may threaten
Stop and think  differentiate between tax evasion and
Accountants have been fined for non-compliance tax avoidance
with the Code of Ethics, and have had claims  identify the elements of money
against professional indemnity insurance for
laundering in straightforward scenarios
breaches of confidentiality. Accountants have been
prosecuted under the anti-money laundering For extra question practice on these topics
regulations. It is essential that professional go to the section of the Question Bank
accountants should act ethically in all of their covering this chapter.
work.
Study Guide 5
Study Due
2 Introduction to taxation The volume and complexity of tax law is Read through Chapter 2 of The specific syllabus references for this
now such that many businesses have to the Study Manual quickly to chapter are: 1a, b, c, d, e, f.
Every person in the UK is affected by our tax
spend considerable amounts of time obtain the background
system in some way. We pay tax on the money In the examination, in the objective test
just on tax administration. When a knowledge of which you
we earn and on the things we buy and this tax questions, students may be required to:
business starts to trade it must inform must be aware. Learn the two
is used by the government to pay for our
HMRC. Without advice from an definitions in the chapter.  identify the social justice principles
schools, hospitals, roads and so on.
accountant, a business may pay too being applied for taxation purposes
Finally work through the self-
There are currently over 20 taxes in the UK much tax and miss deadlines.
test questions carefully to  recognise external influences on the UK
although you will only study the most common
Many business decisions will have tax ensure that you have grasped taxation system
of these for your exams.
consequences and will be discussed at the main points in the
board level. Tax is now very important chapter.  understand which taxes apply to
As governments and business practices change, different taxpayers eg, partnerships,
as most large companies operate on a
the tax system changes. The annual Budget companies
global basis and will choose which
forms the basis for the Finance Bill which then
country they want their business to be  identify the responsibilities of HMRC
receives Royal Assent, becoming the Finance
based in at least partly on the basis of
Act. For extra question practice on these topics
tax cost.
go to the section of the Question Bank
The Finance Act is supplemented by a huge body At the other end of the spectrum you covering this chapter.
of case law and practical interpretation. may encounter tax in the context of a
Unfortunately, the new law is usually just added to growing business taking on its first
the existing law and so the overall legislative employee and setting up a payroll.
burden increases over time. There are regular calls Small businesses often struggle most
for a programme of tax simplification, but with tax administration and can benefit
although there has been much discussion, we most from sensible tax advice and
have seen little real change. planning. Just knowing in advance how
much tax is payable and when, will help
It is important to have a good overall feel for
a small growing business considerably.
the tax system early in your studies so that you
The accountant advising on how to
know where to look for the detailed rules when
claim a tax credit or allowance will help
you need them later on.
his client to succeed.
Stop and think The introduction of digitisation of tax
It is likely that you have personally been paying hopes to transform tax administration
tax on your various sources of income/gains for making it more effective, more efficient,
some time. Have you stopped to think about how and simpler for the taxpayer.
this affects the decisions that you make? Do you,
for instance, regularly invest money in tax free
individual savings accounts?
Study Due
3 Introduction to income tax In practice, much of the accountant's Read section 1 of Chapter 3 The specific syllabus references for this
job will be to check and then interpret and learn the list of exempt chapter are: 3a, b, j.
Income of different types is taxed at different
the figures produced by their own income in section 1.3. In the examination, in scenario-based
rates of income tax. This makes it difficult to
computer system and HMRC’s. questions, students may be required to:
calculate an individual's income tax liability and In section 2 it is very
indeed a common criticism of the tax system is Most will use software to prepare their important to work through  differentiate between items which are
that the 'man in the street' cannot understand clients' tax returns. This will include a the worked examples and taxable and exempt for income tax
his own tax bill. computation of the tax payable, and interactive questions purposes
may include other supporting schedules carefully. These ensure that
One way of helping people to deal with  categorise taxable income as non
and summaries. However, we all know you can apply the main
complexity in the tax system is to use savings, savings or dividend income
that computers are only as good as the points studied.
technology. Enabling computer software to do
data input and the skills of the In the objective test questions, students
much of the calculation means that the public Section 3 of this chapter is
programmer. A computer cannot may be required to:
does not need to understand the underlying vitally important and should
replace a skilled accountant who knows
principles. be worked through  calculate the tax liability
the client and understands the business'
thoroughly. The examples
There has been a strong drive from government needs. A good accountant can add  identify how tax relief is given for Gift
and interactive question are
in recent years to encourage people to use perspective and give advice beyond Aid
vital for your studies and you
internet filing. HMRC has responded to this by mere compliance work.
should work through them all  compute the allowances available for
building online filing facilities into its own
Understanding how a person's income carefully. taxpayers with income exceeding
website. If you look at its home page you will
tax liability is put together will be useful £100,000, and for some married
see some of the services on offer Once you are happy with the
not only in a work context but also in couples
(www.gov.uk/government/organisations/hm- above, work through section
your personal and family life. For extra question practice on these topics go
revenue-customs). Individuals can file their own 4 of the chapter. Again the
personal tax returns directly online which examples are the most to the section of the Question Bank covering
means faster and more accurate processing important part of the section. this chapter and to the section of the
than with paper returns and in the case of a tax Question Bank containing scenario-based
Finally, complete the self-test questions for income tax. However, you will
refund being due, it should be paid more
questions at the end of the need to study Chapter 4 and Chapter 5
quickly.
chapter. before attempting these scenario-based
Stop and think questions.
Do you understand your own tax bill? It is likely that Students have historically prepared well for
you receive employment income and possibly
this area of the syllabus. Better prepared
income from various investments such as dividend
students are able to perform well in the more
income and bank/building society interest. Did you
difficult area of Gift Aid.
realise that you must pay different rates of tax on
each of these types of income?
Study Guide 7
Study Due
4 Employment income Whilst there are some basic rules for Read quickly through section The specific syllabus references for this
what is taxable, a person's take home 1 of this chapter but pay chapter are: 2b, 2d, 3c.
Most people are interested in their employment
pay can be altered dramatically by the particular attention to the
package. Employers recognise that a flexible In the examination, in scenario-based
make up and timing of their worked example.
and modern system for rewarding their questions, students may be required to:
remuneration.
employees results in a happier and more Section 2 is vitally important
committed workforce. They also know that one  determine how benefits are taxable on
An accountant will be expected to as you must be able to
employees
of the largest costs of running a business will be understand how an individual's calculate the value of the
the cost of the payroll, so it is important to employment income will be taxed and various taxable benefits  identify which benefits are exempt
ensure it is correct. give advice on how tax can be covered. Work through the
minimised. Sometimes different parts of examples and questions Students may be required in the objective
Whilst we have some basic rules which identify test questions to:
our tax legislation will interact. A choice carefully. Learn as many of
what is taxable and when, the government also
which may reduce income tax must also the exempt benefits as you  calculate an employee’s PAYE code
uses the tax system to influence what
be considered in the context of other can.
employment benefits people prefer. For  understand the operation of the PAYE
taxes and tax credit claims to ensure
example, environmental damage caused by In section 3 there are three system.
that the best overall result is achieved
CO2 emissions are a major concern and so examples of the calculation of
for a client. It is important to keep up to For extra question practice on these topics
employees choosing electric cars or cars which PAYE codes that you should
date and alert for changing legislation. go to the section of the Question Bank
produce low emissions are taxed less than those work through carefully.
who drive more polluting cars. Understanding your client means covering this chapter and to the section of
Finally work through the self- the Question Bank containing scenario-
Stop and think looking beyond his business needs and
test questions at the end of based questions for income tax. However,
it will be common to advise a company
Think about the benefits your employer provides the chapter. you will need to study Chapter 5 before
not only on corporation tax, but also to
for you. Are these benefits part of your attempting these scenario-based questions.
assist with PAYE issues and give advice
employment package because of their tax-efficient
status? Do you know how to quantify them for tax
to the directors on their personal tax as Students need to take great care when
purposes? well. calculating the value of a benefit, as often
Although there is a lot to learn, you will one important piece of information is
find that friends and family will be keen missed when working this out.
to test the extent of your knowledge in
this area too.
Study Due
5 Trading profits A significant practical problem is Read quickly through section The specific syllabus references for this
identifying when a new trade actually 1 of Chapter 5. You should chapter are: 3d, e.
In some businesses, it is obvious that trading is
begins. It is rare that a client seeks the be aware of the badges of
taking place. Perhaps the client has opened a In the examination, in the objective test
help of an accountant before starting trade. Then read section 2.
shop or bought an existing business from questions, students may be required to:
up a new business. There is usually
someone else. However, in other cases it can be Section 3 is the most
some early activity and it is often only as  identify and use the badges of trade in a
more difficult to establish whether a person has important part of the chapter
the business needs to seek external given scenario
a taxable business. There is a mass of case law and you must work through
finance or as the first deadlines loom
to help determine this. A profit motive can be a it slowly and carefully. It is Students may be required in scenario-
that the entrepreneur thinks about
significant pointer towards the existence of a important that you have a based questions to:
asking for tax advice.
trade, but this may not be enough on its own. very good understanding of
Many one-off transactions could be treated as Unfortunately this can be too late for when expenditure is  determine whether expenditure
capital gains instead and the tax consequences some and they may have already allowable or disallowable. incurred is allowable or disallowable in
will be very different. Many individuals have incurred late notification or filing calculating trading profits
The worked example in
bought and sold goods on eBay without penalties. The job is then one of finding  correctly deal with other adjustments
section 4 is the most
realising that what they were actually doing was out what has happened and negotiating required to calculate adjusted trading
important part of this final
trading, and that they could be liable to pay tax reduced penalties before looking profits
section.
on their profits. HMRC has been taking a close forward and helping the business with
interest in this type of activity, and eBay now its plans for the future. The self-test questions at the For extra question practice on these topics
requires those using the site to register as either end of the chapter cover the go to the section of the Question Bank
For larger unincorporated businesses, covering this chapter and to the section of
trading or non-trading members. most important points learnt
the financial accounts may have been the Question Bank containing scenario-
so finish the chapter by
95% of the businesses which exist in the UK are prepared quite separately from the tax based questions for income tax.
working through them.
small and most of these are unincorporated. computations of the business owners.
Although they may not pay very much income The accountant will then have to go
tax on their profits when compared to the through the figures making changes for
corporation tax paid by large multinational the differences between tax and
companies, they are important cogs in the accounting law and practice. Smaller
wheels of the economy. Government tries to businesses may only prepare tax
encourage business by giving tax relief for some computations in the first place, perhaps
business expenses, although not all. with additional statements being
Stop and think prepared from time to time to support
business plans or cash flow forecasts.
Your friends/family may often buy and sell certain
valuable items. Have you ever stopped to think What is taxable and in which year is an
about whether they are trading? ongoing challenge.
Study Guide 9
Study Due
6 Capital allowances The general rule when working out Read quickly through section The specific syllabus reference for this
taxable profits is that any depreciation 1, but take care to spend time chapter is: 3e.
When a company, a sole trader or a partnership
that has been charged in working out on the pro forma In the examination, in the objective test
draws up accounts, there will normally be a
accounting profits is not deductible in computation. questions for unincorporated businesses
deduction for the depreciation of capital assets.
computing taxable profits, so it must be and in scenario-based questions for
The purpose of this is to spread the cost of Sections 2 to 7 are very
added back. Capital allowances are then corporation tax, students may be required
these assets over the time that they are to be important and should be
calculated on certain types of asset, and to:
used to generate income. The tax system deals studied thoroughly. You
are deducted from profits to arrive at
with capital assets quite differently from should work through all of the  identify which assets qualify as plant
taxable profits.
financial reporting. Capital allowances are the worked examples and and machinery
deduction that is given for tax purposes in Some special types of asset have to be questions very carefully.
respect of capital expenditure instead of kept separately identified, for example  calculate writing down allowances at
Finish the chapter by the correct rate and deal with disposals
depreciation. items where there is an element of
completing all of the self-test
private use by the sole trader or partner.  identify which assets are eligible for first
In practice, the capital allowances which are questions.
year allowances
given will usually accelerate tax relief for the For larger businesses, the capital
costs of buying fixed assets. The expenditure on allowances computation will be done  correctly apply the annual investment
most plant and machinery qualifies for using software. Smaller businesses may allowance
allowances at the rate of 18% each year on a do the calculations by hand, but in all  correctly treat cars and other assets with
reducing balance basis, but the government cases, accurate record-keeping is private use by the sole trader or partner
periodically introduces higher rates of relief essential.
such as the AIA for short periods of time. This is  determine the amount of any balancing
to encourage businesses to bring forward their adjustment
capital expenditure plans and to try to boost  calculate capital allowances for periods
growth in the economy. More generous rates shorter or longer than 12 months
are also used to encourage expenditure on
For extra question practice on these topics
other assets such as environmentally friendly
go to the section of the Question Bank
cars and energy saving equipment.
covering this chapter. There is further
Stop and think practice of capital allowances in the section
of the Question Bank containing scenario-
Have you ever wondered how tax relief is given for
based questions for corporation tax, to try
capital expenditure and/or whether tax relief is
after studying Chapter 10.
given for all types of expenditure? If tax relief were
given for the depreciation charged on assets A methodical approach is required to
through the accounts there would be significant calculate capital allowances, otherwise this
potential for taxable profit to be manipulated by can be unnecessarily time-consuming.
the choice of depreciation rate. Consequently, a
standardised tax allowance is given to prevent this
manipulation.
Study Due
7 Trading profits – basis of assessment If you are training to be an accountant in Students often find the rules The specific syllabus references for this
practice, you are likely to be employed by covered in this chapter quite chapter are: 3e, f, g, h, i.
It is inevitable that most businesses are started
a partnership. complicated when they begin
by people who do not have any formal financial In the examination, in the objective test
their studies. However, the
training or tax background. It is possible for Whenever you begin to review a client's questions, students may be required to:
rules are fundamental and
them to get basic help and advice through the tax affairs, it is important to identify the
you must be able to apply  correctly apply the current year basis for
government’s gov.uk website, but the reality is trading medium which is being used for
them in any given situation. taxing trading profits
that the UK tax system is actually too complex the transactions you are reviewing. The
The secret to achieving this is
for a do-it-yourself approach to work in most tax consequences of trading as a sole  calculate the taxable trading profits in
to practise as many examples
cases. trader or partnership follow income tax the opening years of a business,
as possible. Gradually you will
principles. A sole trader is taxed on the including overlap profits
Even the choice of accounting date can make a learn the technique for
profits of their business whilst each
big difference to a business. For example, a working out taxable profits.  determine the taxable trading profits in
partner is taxed on their interest in the
seaside guest house will probably not want to Work through all of the the final tax year of a business
business which will be governed by
have its year end in the middle of its busy questions and examples in
their profit sharing agreement.  understand how partnership profits are
summer season. If a business later finds that it sections 1 to 4 carefully.
needs to change its accounting date, then The special tax rules for opening and allocated to individual partners and are
Do not begin the section on taxed on them individually
special tax rules apply. closing years of trading apply to sole
partnerships until you are
traders and individual partners. When  determine taxable trading profits using
The partnership remains a popular business very confident with the
starting a sole trade or a partnership, it the cash basis of accounting
medium today. It is used by all types of trade previous sections of the
is worth thinking carefully about the
from small building firms, caterers and artists, chapter. For extra question practice on these topics
choice of year end to reduce the
to international architects, lawyers and go to the section of the Question Bank
amount of overlap profits. Section 6 is important as it
accountants. covering this chapter.
takes you through the rules
For partnerships, the interaction of the
Rules have been introduced to allow sole on the cash basis for small A significant amount of practice is required
accounting rules which determine
traders with turnover below £150,000 to use businesses. Work through this by students in order to be able to deal
accounting profits, the tax rules for
the cash basis when calculating their taxable section and the worked efficiently with opening year rules for sole
determining taxable profits, and then
profits. It is hoped these rules will make the tax example carefully. Look back traders and partnerships.
the rules for assessing income in specific
system simpler for these smaller businesses. to Chapters 5 and 6 to
tax years, can lead to some inequitable
Stop and think contrast these rules with the
divisions of the business’s tax charge
ones you have already learnt
You probably know that businesses may prepare between the partners. For this reason,
for businesses using accruals
accounts to any date they choose. Have you ever many partnerships use a tax reserve to
accounting.
stopped to wonder how we decide which tax year retain cash within the control of the
the profits of a period of account should be taxed business to smooth out some of these The self-test questions
in? effects. However it is important to provide additional practice at
remember that this does not change applying the rules. Work
the underlying principle that each through them carefully.
partner is taxed as an individual.
Study Guide 11
Study Due
8 National insurance contributions Just as many of the population have Read quickly through section The specific syllabus references for this
National insurance contributions (NIC) were tended to ignore national insurance in 1. Then work through the chapter are: 2b, 3k.
introduced early in the 20th century and were the past, so too have many in the tax examples and interactive
In the examination, in the objective test
meant as a temporary measure. Over 100 years and accounting professions. question in section 2 very
questions, students may be required to:
later they are still with us and form a large part Nevertheless, both the structure and the carefully.
of the UK’s taxation yield. amount raised by the tax are worthy of  calculate national insurance
Read through sections 3 and 4
careful scrutiny. contributions payable by employees
The tax is paid on earnings. The largest amount paying particular attention to
collected relates to employed persons, both and their employers
The misclassification of workers the worked example and
personally (ie, deducted from salaries), and also (employed or self-employed) will lead interactive question in section  calculate national insurance
that paid by employers (ie, as a tax on the to the wrong classes and amounts of 4. contributions payable by sole traders
salary). Businesses prefer to use self-employed national insurance being paid. This can and partners
workers as they do not pay NIC on self- Finish the chapter by
have an impact on the person's future
employed workers’ invoices. The workers completing the self-test For extra question practice on these topics
entitlement to state benefits. HMRC
themselves would often rather be taxed as self- questions. go to the section of the Question Bank
regularly lists calculation of the amount
employed as the NIC rate is lower, ie, it saves covering this chapter.
chargeable to national insurance as one
tax. However, the employed/self-employed
of the most commonly made errors.
classification is not a matter of choice, but one of
law. A further complication in practice arises
The high cost of NICs has also driven many high- where people are both employed and
earning individuals to use tax-saving avoidance self-employed, or where they have more
schemes. At one time there appeared to be more than one job at the same time. There
fine wine in the hands of such people than could are annual limits to the amount of
possibly have really existed, but they had been national insurance which has to be paid,
paid ‘in kind’ to avoid NIC. Other assets, such as which most workers will be unable to
platinum sponges, were also popular at various apply without professional advice.
times as the avoidance industry sought to reduce
tax bills. These days most such contrived
avoidance schemes have been stopped.
NIC remains a substantial cost for employers
both in absolute terms and in the costs of
administering the tax.
Stop and think
Do you realise how much of your income is taken
in national insurance? Have a look at your last
payslip. Is it more than you thought? Do you think
of it as a tax?
Study Due
9 Capital gains tax – individuals Individuals report any capital gains tax Read through section 1. The specific syllabus references for this
payable on supplementary pages within chapter are: 4a, b, c, d.
Income tax is charged on a person's income Section 2 is more important
the same annual tax return that is used
from trading, employment or derived from and you must study the In the examination, in the objective test
for income tax self assessment purposes.
ownership of investments. Capital gains tax is worked example and questions, students may be required to:
Not everything needs to be reported; for
the tax paid on the increase in the value of a interactive question carefully.
example, a small gain from the sale of  determine when a gain or loss arises
capital asset when it is disposed of. This
just one asset which is below the annual Section 3 is also very
immediately raises a number of issues, such as  compute a gain or loss on disposal of a
disclosure threshold does not need to be important and the worked
how in practice to determine when a sale is of a capital asset
included. If on the other hand there examples and interactive
capital item and when it is of a revenue item.
have been many such disposals, they question should be worked  calculate the capital gains tax payable
Generally speaking a one off sale of something
will probably need to be shown. through carefully. for the tax year
on which you did not intend to make an
immediate profit from selling will give rise to a The complex nature of parts of the Once you are completely  calculate any gain or loss on disposal of
capital gain. capital gains tax system we have today happy with sections 2 and 3 a chattel
is largely created by the historical build you should work through
There have been times during the past 40 years For extra question practice on these topics go
up of legislation. One aim behind the section 4 on chattels.
when the general level of inflation has reached to the section of the Question Bank covering
introduction of sweeping changes in
double figures. Companies, but not individuals, Finally complete the self-test this chapter.
2008 has been to simplify the system.
may deduct an indexation allowance from the questions at the end of the
This has involved making the basic
gain to remove the effect of inflation on the chapter.
computation more straight forward.
increase in value of the asset. The indexation
Changes in 2010 have however
allowance is based on the movement in the
reintroduced the link between the
retail price index and is covered in Chapter 10.
taxation of income and gains.
Prior to 1998 individuals were also entitled to
deduct an indexation allowance.
There are many other reliefs which reduce

chargeable gains, particularly for assets used by
businesses.
Stop and think
It is generally obvious when you are earning
income on which you must pay tax. However,
would you recognise when you might be subject
to capital gains tax on the disposal of a capital
asset?
Study Guide 13
Study Due
10 Corporation tax There are many factors which can affect You should read section 1 The specific syllabus references for this
a company's corporation tax liability. It fairly quickly. chapter are: 4a, b, c, 5a, b, c, d.
Companies pay corporation tax on the profits
is important not only to identify
of an accounting period. Usually this is the Sections 2 and 3 are more In the examination, in the objective test
same as the period for which they prepare and correctly taxable trading profits, but important and you must work questions, students may be required to:
publish (for larger companies) their accounts, also to calculate correctly any tax relief through all of the worked
for fixed assets which were purchased  identify the correct accounting periods
but there are exceptions which you will meet in examples and the interactive
during the period. The date on which of a company
this chapter. question carefully.
an item of plant is purchased and the  calculate the corporation tax payable by
When you look at a set of published accounts, length of the company's accounting Ensure you understand how
you will see that the effective rate of different sources of income a company
period are both relevant. In practice,
corporation tax paid on its profit before tax will and gains are classified, and In the scenario-based question for
the exact date of purchase is governed
vary enormously from company to company the payment date(s) for corporation tax, students may be required
by specific tax rules, although these are
and year to year. This rate has become very corporation tax. to:
not within the scope of this text.
important in recent years as boards of directors
Finally complete the self-test  calculate the taxable total profits for a
are judged on their tax performance as well as
questions at the end of the company
their trading profits. A tax rate which is too
chapter.
high may indicate that the company may be  demonstrate understanding of the
missing tax reliefs and credit opportunities; too impact of related 51% group
low and they may be accused of shirking their companies on corporation tax payment
corporate responsibility to pay their 'fair share'. dates
Stop and think For extra question practice on these topics
When you do business with someone, think about go to the section of the Question Bank
whether the business is run as a sole trader, or as a covering this chapter and to the section of
company. There are very different tax the Question Bank containing scenario-
consequences for each. based questions for corporation tax.
Study Due
11 Value added tax The current level of the VAT threshold Read through sections 1 and The specific syllabus references for this
means that many businesses which are 2 quickly to gain a general chapter are: 6a, b, c, d, e.
VAT is an indirect tax levied on supplies of
large enough to use a professional understanding of how VAT
goods and services. As such it is collected on In the examination, in the objective test
adviser will need to register for VAT. works.
behalf of the government by registered traders questions, students may be required to:
Registration brings with it extra
who pay it over to HMRC on a regular basis: Section 3 on registration is
administrative requirements and also  determine when a transaction is within
monthly, quarterly or annually. We all pay VAT, important and is worth
means that the prices which the the scope of VAT, and the impact of it
but registered traders can also recover some of working through carefully.
business charges to the general public being a taxable or exempt supply
the VAT which they pay on their purchases. The
will be higher. However, it can also be The interactive question
government collects a huge proportion of its  identify when VAT
beneficial for a business to register for covering the tax point in
annual revenue in the form of VAT which makes registration/deregistration are
VAT. particular in section 4 is very
the tax extremely important in practice. required/desirable
important.
It is important to understand how and
Other countries within the European Union have  calculate the VAT applying to a supply,
when to account for VAT and to also be To finish the chapter you can
their own VAT-equivalent taxes and there are starting at either the VAT inclusive or
aware of when this differs from the work through section 5 and
strict rules governing how each Member State exclusive figure
direct taxes, income and corporation then attempt the self-test
can operate the tax.
tax. Also, because VAT is dealt with questions at the end of the  determine the tax point of a supply
Stop and think during a business's accounting period, it chapter.
is very much a 'real time' tax. If a client  deal with additional aspects of input tax
If a business has to charge VAT on its sales, those and output tax such as bad debts,
is unsure about how to account for a
sales become more expensive for the unregistered discounts etc
consumer and can make the business less
particular transaction, the problem will
competitive. Thus many businesses depend on need to be solved within a matter of For extra question practice on these topics
good VAT advice and a competent accountant weeks rather than after the end of the go to the section of the Question Bank
should always remember to advise on the VAT tax year or accounting period. It is not covering this chapter.
consequences of particular courses of action. always obvious from legislation whether
goods are chargeable to VAT, and if Students have historically been weak at
they are, what rate should be used. VAT questions. This is probably because
there are a large number of small issues to
deal with rather than one main pro forma
to learn. It is essential that students take
time to understand and become
competent at VAT at an early stage.
Study Guide 15
Study Due
12 Value added tax – further aspects Accounting for VAT and paying the tax Read through section 1, The specific syllabus references for this
on time is an important part of a working carefully through the chapter are: 2a, d, 6e, f.
Successive governments have continued to
business's regular administration. An worked examples and
introduce further schemes designed to simplify In the examination, in the objective test
accountant can help a business by interactive question.
VAT administration to make it less of a burden questions, students may be required to:
advising on the special schemes for
for business. Then ensure that you know
which it may be eligible.  calculate the VAT payable or
how the schemes covered in
Many businesses complete their own VAT reclaimable for a period
Some of these schemes just reduce section 2 work.
returns and just ask their accountant to deal
paperwork by reducing the frequency of  identify the schemes available to small
with problems. Read quickly through section
returns, but others can actually reduce businesses and apply the rules of the
3.
Although a business is merely collecting VAT on the amount of VAT which a business schemes
behalf of the government, many still resent pays over to HMRC. Not all businesses Remember to attempt the
having to pay over the cash when it falls due. will benefit from using the schemes, self-test questions at the end For extra question practice on these topics
Indeed, for many smaller businesses, collecting however, so it is important to of the chapter. go to the section of the Question Bank
and paying VAT can create severe cashflow understand when they are relevant. covering this chapter.
difficulties.
Stop and think
Did you realise that VAT administration can be a
significant burden for businesses? A competent
accountant can provide invaluable support by
advising on when these administrative burdens
can be alleviated, or by helping a business with its
VAT administration.
Study Due
13 Administration of tax The administrative rules which you will This is a large chapter The specific syllabus references for this
be covering in this chapter are containing the administration chapter are: 2a, c, d, e, f.
The self assessment system is built on the premise
important. Taxpayers, particularly those of all the taxes covered in the
that individuals and companies assess their own In the examination, in the objective test
in business, will need to ensure that they Principles of Taxation
tax. This places a considerable administrative questions, students may be required to:
have the systems in place to meet the syllabus.
burden on the taxpayer.
various deadlines as they fall due and  determine due dates for employers'
Sections 1 to 3 are important
As well as obligations to submit data, the taxpayer that their cash flow encompasses PAYE and national insurance returns
as they cover the common
also has the right to make changes later on. payment of tax on time. Most corporate and payments, including penalties for
penalty regimes applying
transactions with HMRC are now non compliance
A company’s return will duplicate much of the across all the taxes.
electronic and over the last few years
information which is required by Companies  determine when a tax return is required
there has been a gradual shift as Read carefully through each
House and the introduction of iXBRL has meant and its submission date, including the
businesses prepare for this. of sections 4 to 12, working
companies can align their filing of the two sets of penalties for non compliance
carefully through the
information. Record retention will continue to be
examples and questions, as  identify the administrative issues
important. Usually taxpayers will need
Individuals and companies must retain records. they outline specific rules on affecting individuals and companies
to keep records for six years, however,
Record retention may involve electronic storage individual taxes.
in cases where there has been  determine the payment dates and
of data for some taxpayers, although accessing
inadequate disclosure, HMRC has Skim read through sections amounts of payments to be made by
the relevant material after a number of years
powers to make a discovery assessment 13 and 14. both individuals and by companies of
have passed can prove problematic in practice.
which could extend back as far as 20 all sizes
Finally complete the self-test
Meeting deadlines and retaining records are years in extreme cases.
questions at the end of the  identify and calculate the penalties and
very important if taxpayers are to avoid
Additionally, you need to know what chapter. interest payable by individuals and
unnecessary interest and penalties. Defaulting
happens when HMRC conducts a companies for non compliance
on these obligations can have far-reaching and
compliance check into a taxpayer's tax
serious consequences. For example, many  recognise when penalties for VAT are
return and what the consequences
companies in the construction industry rely on due and determine the amount of the
could be. The taxpayer has certain
being able to use a special scheme for their penalties
rights of appeal and these can be very
subcontract work; if they have paid their
important, for example, where HMRC For extra question practice on these topics
corporation tax late on more than two
has made unrealistic demands. Where go to the section of the Question Bank
occasions, they can be excluded from the
interest and penalties are imposed, a covering this chapter.
scheme and then the larger building companies
well prepared accountant can save a
will not use them.
client considerable sums.
Stop and think
Did you realise how important it is to ensure that a tax
return is filed on time and that tax is paid by the due
date? If this is not done penalties can be considerable.
Study Guide 17
4 Syllabus and learning outcomes
Covered
in chapter
1 Objectives, types of tax and ethics

Students will be able to explain the general objectives of taxation, the influences upon the
UK system of taxation, the different types of tax in the UK and will be able to recognise the
ethical issues arising in the course of performing tax work.
In the assessment, students may be required to:
(a) Identify the objectives of digitisation of tax. 2
(b) Identify the objectives of taxation in general terms of economic, social justice and
environmental issues, the range of tax opportunities open to the government and the
relative advantages of different types of tax in meeting the government’s objectives. 2
(c) Recognise the impact of external influences, including EU tax policies, on UK tax
objectives and policies. 2
(d) Classify entities as individuals, partnerships, or companies for tax purposes and state
how they are taxed. 2
(e) Identify who is liable for the following taxes, how the taxes apply to income and
transactions, identify the government bodies responsible for the taxes, and determine
when an individual or entity comes within the scope of the taxes: 2
 capital gains tax
 corporation tax
 income tax
 national insurance
 VAT
(f) Recognise the importance of the budget cycle, tax year and the following sources of
UK tax law and practice: 2
 legislation
 case law
 HMRC manuals, statements of practice, extra statutory concessions and press
releases
(g) Identify the five fundamental principles given in the IESBA Code of Ethics for
Professional Accountants and ICAEW Code of Ethics, and the guidance in relation to a
tax practice with regard to: 1
 the threats and safeguards framework
 ethical conflict resolution
(h) Identify the following: 1
 conflicts of interest
 money laundering
 tax avoidance and tax evasion
2 Administration of taxation
Students will be able to identify the obligations the UK system of taxation imposes on
taxpayers and the implications for taxpayers of non-compliance.
(a) Identify the records which companies and individuals must retain for tax purposes
and state the periods for which the records must be retained. 12,13
Covered
in chapter
(b) Identify the key features of the PAYE and national insurance system and calculate
PAYE tax codes for employees. 4, 8
(c) Identify the key features of the self assessment system for both companies and
individuals. 13
(d) Determine, in straightforward cases, due dates for:
 companies', sole traders', partnerships' and individuals' tax returns, tax payments
and payments on account 13
 businesses' VAT returns and payments 12
 employers' PAYE and national insurance returns and payments 4, 13
(e) Identify and calculate the interest and penalties due for:
 late submissions of and/or incorrect returns 13
 late and/or incorrect payments of tax 13
(f) Identify the periods within which HMRC can enquire into a taxpayer's returns or other
information and tax liabilities and recognise the taxpayer's right of appeal and the
process for dealing with disputes. 13
3 Income tax and national insurance contributions

Students will be able to calculate the amount of income tax owed by or owed to
individuals and the amount of national insurance payable.
(a) Recognise the main sources of taxable and non-taxable income. 3
(b) Calculate the personal allowance available to an individual according to personal
circumstances including married couples allowance and marriage allowance. 3
(c) Calculate assessable employment income for an employee or director, including
taxable and exempt benefits. 4
(d) Recognise the badges of trade. 5
(e) Allocate given items of business expenditure as allowable or disallowable for tax
purposes and calculate the adjusted trading profits after capital allowances on plant
and machinery of a sole trader or partnership using either the accruals basis or cash
basis of accounting. 5, 6, 7
(f) Allocate the tax adjusted profits of a partnership to each partner and calculate the tax
assessable profits for each partner for any given tax year. 7
(g) Calculate the assessable trading profits for a new unincorporated business and
identify the overlap profits on the commencement of trade. 7
(h) Calculate the assessable trading profits for a continuing business. 7
(i) Calculate the final assessable trading profits for an unincorporated business ceasing to
trade. 7
(j) Calculate total taxable income and the income tax payable or repayable for
individuals. 3
(k) Calculate the total national insurance contributions payable by employees, employers
and self-employed individuals. 8
Study Guide 19
Covered
in chapter
4 Capital gains tax and chargeable gains for companies

Students will be able to calculate the amount of capital gains tax payable by individuals
and the chargeable gains subject to corporation tax.
(a) Classify persons, assets and disposals as either chargeable or exempt for capital gains
purposes. 9
(b) Calculate the chargeable gains and losses on the disposal of assets, including
indexation where appropriate. 9
(c) Calculate total taxable gains for both individuals and companies. 9, 10
(d) Calculate the capital gains tax payable by individuals. 9
5 Corporation tax
Students will be able to calculate the amount of corporation tax payable by companies.
(a) Identify accounting periods for a company. 10
(b) Recognise the interaction of having one or more related 51% group companies with
corporation tax payment dates. 10
(c) Allocate given items of business expenditure as allowable or disallowable for tax
purposes and calculate the adjusted trading profits after capital allowances on plant
and machinery. 10
(d) Calculate the taxable total profits and the corporation tax payable for a company
resident in the UK which has a period of account of 12 months or less. 10
6 VAT
Students will be able to calculate the amount of VAT owed by or owed to businesses.
(a) Classify supplies in given straightforward situations as exempt, zero-rated, standard-
rated, subject to a reduced rate of 5%, or outside the scope of VAT. 11
(b) Recognise the implications of supplies being classified as standard-rated, zero-rated or
exempt. 11
(c) Identify when a business could or should register or deregister for VAT and state the
time limits. 11
(d) Determine the tax point for a supply of goods or services. 11
(e) State the principles of VAT payable or repayable on the supply of goods or services by
a taxable person and calculate the monthly, quarterly or annual VAT payable or
repayable by a business. 11, 12
(f) State the alternative schemes for payment of VAT by businesses and calculate the VAT
payable or repayable for a business using these. 12
5 Technical knowledge
The tables contained in this section show the technical knowledge in the disciplines of ethics and
taxation covered in the ACA syllabus by module.
For each technical topic, the level of knowledge required in the relevant Certificate or Professional Level
module is shown.
The knowledge levels are defined as follows:
Level C
A general knowledge with a basic understanding of the subject matter and training in its application
thereof sufficient to identify significant issues and evaluate their potential implications or impact.
Level B
A working knowledge with a broad understanding of the subject matter and a level of experience in the
application thereof sufficient to apply the subject matter in straightforward circumstances.
Level A
A thorough knowledge with a solid understanding of the subject matter and experience in the
application thereof sufficient to exercise reasonable professional judgement in the application of the
subject matter in those circumstances generally encountered by Chartered Accountants.
Key to other symbols:
 The knowledge level reached is assumed to be continued
Study Guide 21
Ethics codes and standards
Ethics Codes and Standards Level Modules
Certificate Level
C/D Accounting
B Assurance
C/D Business, Technology and Finance
D Law
C Management Information
C Principles of Taxation
Professional Level
IESBA Code of Ethics for Professional A Audit and Assurance
Accountants (parts A, B and C and Definitions)
B Business Strategy and Technology
B Financial Accounting and
ICAEW Code of Ethics Reporting
B/C Financial Management
B Tax Compliance
B Business Planning
Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study
FRC Revised Ethical Standard (2016) B Assurance
A Audit and Assurance
Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study
Taxation
Certificate & Professional Level
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Legal and ethical framework
Anti-money laundering guidance C B A
Base erosion and profit-shifting project B
Disclosure of tax avoidance schemes (DOTAS) A
General anti-abuse rule A
HMRC B  
Objectives of taxation C  
Professional Conduct in Relation to Taxation (PCRT) C B
Tax planning, evasion and avoidance C B A
Administration
Administration B  
Appeals C  
Digital accounts B  
PAYE B  
Payments B A 
Penalties and interest B  
Self-assessment B A 
Capital gains tax

Chargeable gains
Annual exempt amount B A 
Capital gains tax for trusts B 
Chargeable assets C B 
Chargeable disposals C B 
Chargeable persons C B 
Chattels: wasting and non-wasting B  
Connected persons A 
Converted trading losses B 
Costs of acquisition and disposal C B 
Study Guide 23
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Leases A
Nil gain/nil loss transfers A 
Part disposals B 
Qualifying corporate bonds B 
Rate of tax B A 
Relief for capital losses A
Reorganisations and reconstructions A
Shares and securities (including bonus and rights issues) B 
Chargeable gains reliefs
Entrepreneurs' relief B A
Gift relief B A
Incorporation relief A
Letting relief A 
Principal private residence relief A 
Reinvestment relief under EIS/SEIS B
Rollover relief B A
Overseas aspects of capital gains tax
Arising basis B A
Domicile B A
Double tax relief A 
Gains on foreign assets B A
Remittance basis B A
Residence C A
Temporary absence A
UK taxation of non-domiciled individuals B A
Income tax
Trading profits
Adjustments to profits B A 
Badges of trade B A 
Capital allowances B A 
Cash basis of accounting B A 
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Foreign currency transactions A
Pension contributions A 
Pre-trading expenditure A 
Patent royalties B 
Owner-managed businesses
Basis of assessment – current year basis B A 
Change of accounting date A 
Commencement and cessation of trade B A 
Overlap profits B A 
Partnerships B A 
Trading losses A 
Treatment of opening year losses A 
Treatment of terminal losses A 
Employment income
Allowable deductions against employment income A 
Employment income B A 
Share schemes A
Statutory Mileage Rates Scheme A 
Taxable and exempt benefits B A 
Termination payments B
Other income/expenditure
Dividends from UK companies B A 
Enterprise Investment Scheme B
Investment income B A 
ISAs B  
Lease premiums A 
Miscellaneous income A 
Property income C A 
Savings income B A 
Seed Enterprise Investment Scheme B
Venture Capital Trusts B
Overseas aspects of income tax
Study Guide 25
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Arising basis B A
Domicile B A
Income on foreign assets and income from foreign employment B A
Remittance basis B A
Residence C A
UK taxation of non-domiciled individuals B A
Income tax computation
Exempt income B A 
Gift of assets and cash to charity B A 
Income tax liability and income tax payable B A 
Income tax charge on child benefit B 
Independent taxation and jointly owned assets B A
Income tax for trusts B 
Limit on income tax reliefs A 
Married couples’ allowance and marriage allowance B A 
Pension contributions – provisions for retirement B A
Pension contributions – tax reliefs B A
Personal allowances B A 
Qualifying interest payments B 
Rates of taxation B A 
Taxable persons C A 
Inheritance tax
Fundamental principles of inheritance tax
Chargeable persons B 
Chargeable property B 
Excluded property B 
Inter-spouse transfers A 
Rates of taxation A 
Related property B 
Seven-year accumulation period A 
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Transfers of value A 
Trusts B 
Valuation A 
Inheritance tax on lifetime transfers
Relevant property trusts A 
Potentially exempt transfers A 
Inheritance tax on death
Death estate A 
Deeds of variation B
Lifetime transfers A 
Overseas aspects of inheritance tax
Deemed domicile for IHT A 
Domicile A 
Lex-situs rules A 
Reliefs and exemptions from inheritance tax
Agricultural property relief C B
Annual exemption A 
Business property relief B A
Fall in value relief A 
Gifts to charities and political parties A 
Gifts with reservation of benefit A
Inter-spouse transfers A 
Marriage/civil partnership exemption A 
Normal expenditure out of income A 
Quick succession relief B 
Small gifts exemption A 
Taper relief A 
National Insurance Contributions

Classes of NIC C B 
Directors B 
Study Guide 27
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Maximum contributions C 
Taxable benefits B 
Corporation tax
Chargeable gains
Chargeable assets C B 
Chargeable disposals C B 
Chargeable persons C B 
Chattels: wasting and non-wasting B  
Costs of acquisition and disposal C B 
Indexation B A 
Leases A
Nil gain/nil loss transfers A 
Part disposals B 
Purchase of own shares A
Qualifying corporate bonds B 
Relief for capital losses A 
Reorganisations and reconstructions A
Shares and securities (including bonus and rights issues) B 
Substantial shareholding exemption B A
Trading profits
Adjustments to profits B A 
Badges of trade B A 
Capital allowances B A 
Foreign currency transactions A
Long periods of account C A 
Pension contributions A 
Patent royalties B 
Taxable total profits
Chargeable gains B A 
Intangible assets B A
Loan relationships B B A
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Loan relationships – worldwide debt cap A
Miscellaneous income B A 
Patent box B
Property income (including lease premiums) A 
Qualifying donations B A 
Research and development expenditure A 
Research and development tax credits B A
Trading losses B A
Trading profits B A 
Use of deficit on non-trading loan relationships B A
Corporation tax computation
Accounting periods C B A
Close companies A
Corporation tax liability B A 
Distributions B 
Diverted profits tax B
Double tax relief (including underlying tax and withholding tax) B 
Liquidation A
Provision of services through a company A
Rates of taxation B A 
Residence C B 
Tax treaties and the OECD Model Tax Convention C
Groups
Capital gains groups B A
Change in group structure A
Change in ownership B A
Consortium relief A
Controlled foreign companies A
Degrouping charges B A
Group loss relief B A
Group relationships A 
Non-coterminous accounting periods B A
Study Guide 29
modules
Business Planning:
Tax Compliance
Principles of
Title
Taxation
Taxation
Overseas companies and branches A
Pre-acquisition gains and losses A
Related 51% group companies B A
Rollover relief B A
Transfer of assets B A
Transfer pricing A
Stamp taxes
Basic principles B 
Chargeable occasions B 
Exemptions B 
Stamp taxes for groups B 
VAT
Capitals goods scheme A 
Classification of supplies B 
Distinction between goods and services C 
EU and overseas aspects A 
Group aspects A 
Input VAT A  
Output VAT A  
Partial exemption B 
Payments A  
Penalties and interest A  
Property transactions B A
Registration and deregistration A  
Single and multiple supplies B 
Small business reliefs A  
Taxable person A  
Taxable supplies A  
Transfer of a business as a going concern A
VAT records and accounts A  
6 Glossary of Terms
Accounting period Period for which a company's taxable total profits are charged to corporation
tax.
Actual basis For income tax purposes, the basis of assessment in the first tax year that a
business operates is the actual basis. This means that the taxable trading
profits for the first tax year are the taxable trading profits of the business from
the date of commencement to the following 5 April.
Adjustment to profits The process whereby an accounting profit or loss is adjusted to accord with
tax law.
Advocacy threat May occur when a professional accountant promotes a position or opinion to
the point that objectivity may be compromised.
Allowable expenditure Expenditure incurred wholly and exclusively for the purposes of the trade
which is not specifically disallowed by legislation.
Annual accounting A scheme available to small businesses which allows them to make payments
scheme for VAT on account of VAT during the year based on the previous year's VAT liability.
A single VAT return for the year is then filed within two months of the year
end together with any balancing payment of VAT due.
Annual exempt amount The amount of gains on which no CGT is payable.
(AEA)
Annual investment A type of capital allowance, which offers tax relief at 100% on qualifying
allowance (AIA) expenditure in the year of purchase. The maximum deductible from taxable
profits is currently £200,000 pa.
Appropriations of Withdrawals from a business (such as the payment of a 'salary' to a sole trader
profit or partner, or dividends paid by a company to shareholders) after tax ie, they
are not allowable for tax purposes.
Augmented profits Taxable total profits plus exempt ABGH distributions.
Badges of trade As there is no statutory definition of 'trading' the Courts have developed a
number of tests to determine whether an entity is trading. Collectively these
tests are known as the 'badges of trade'.
Balancing allowance If too few capital allowances have been given on an asset over its lifetime, a
balancing allowance may arise. This might happen if an asset is sold for an
amount less than its tax written down value.
A balancing allowance can only arise on the main pool if the business ceases.
Balancing allowances can arise on single asset pools when the asset is sold,
even when the business has not ceased.
Balancing charge If too many capital allowances have been given on an asset over its lifetime, a
balancing charge arises. This might happen if an asset is sold for an amount
in excess of its tax written down value.
A balancing charge can occur on the main pool and on single asset pools at
any time.
Budget cycle The process by which UK statutory tax law is developed The tax law is
amended each year by the Finance Act. This is based on proposals from the
Government and presented by the Chancellor of the Exchequer in the
Budget. The Budget forms the basis for the Finance Bill which is presented to
Parliament each year to enact the proposals and bring them into law. This
process is complete once the Finance Bill receives Royal Assent, becoming the
Finance Act.
Glossary of terms 31
Business Payment Assists businesses which are unable, or anticipate they will be unable, to meet
Support Service (BPSS) income tax, national insurance, corporation tax, VAT or other payments owed
to HMRC.
The service reviews the circumstances of the business and may arrange
temporary options such as for payments to be made over a longer period.
Additional late payment penalties will not be charged on payments included
in the arrangement, provided the taxpayer makes payments in line with the
arrangement. However interest will continue to be payable as applicable.
Capital allowances Tax allowances for certain types of capital expenditure. Depreciation on
assets is not allowable for tax purposes. Instead, capital allowances give tax
relief by allowing part of the cost of capital assets each year.
Capital gains tax (CGT) Paid by individuals on their taxable gains.
Careless inaccuracy The taxpayer has not taken reasonable care in completing the return.
Cash accounting Allows small businesses to account for VAT on the basis of cash paid and
scheme for VAT received, rather than on invoices received and issued.
Cash basis Certain small unincorporated businesses may elect to use the cash basis
rather than accrual accounting for the purposes of calculating their taxable
trading income. Under the cash basis, a business is taxed on its cash receipts
less any cash payments of allowable expenses.
Chattels An item of tangible moveable property. Specifically excludes goodwill, shares
and leases.
Common penalty Relates to situations where a taxpayer has made an error/inaccuracy in a tax
regime return. The regime covers income tax, national insurance contributions,
corporation tax and value added tax. Penalties are based on the Potential Lost
Revenue (PLR) and range from 30% to 100% of the PLR. Penalties may be
reduced or suspended.
Company A company is a legal person formed by incorporation under the Companies
Acts. It is legally separate from its owners (shareholders) and its managers
(directors).
Compliance checks HMRC may conduct two main types of compliance checks into taxpayer
returns:
 pre-return checks; and
 enquiries into returns, claims or elections which have already been
submitted.
In addition, HMRC may conduct a check after a return has become final (or
where no return has been submitted) where it believes that an assessment or
determination may need to be issued under the discovery provisions.
Confidentiality Professional accountants are required to respect the confidentiality of
information acquired as a result of professional and business relationships
and, therefore, not disclose such information without proper and specific
authority unless there is a legal or professional right or duty to disclose, nor
use the information for their personal advantage or the advantage of third
parties.
Corporation tax Paid by companies on their taxable total profits for an accounting period.
Criminal property Includes (but is by no means limited to):
 the proceeds of tax evasion, other tax-related offences or any other
crime
 a benefit obtained through bribery and corruption (including both the
receipt of a bribe and the income received from a contract obtained
through bribery or the promise of a bribe)
 benefits obtained, or income received, through the operation of a
criminal cartel
 benefits (in the form of saved costs) arising from a failure to comply with
a regulatory requirement, where that failure is a criminal offence
Current year basis For income tax purposes, the CYB is the basis on which trading profits are
(CYB) taxed. Under the CYB, the basis period for the tax year is the taxable trading
profits for the 12-month period of account ending in that tax year.
Default surcharge The default surcharge regime applies where there is late payment of VAT or
late filing of a VAT return. However, a default surcharge penalty only applies
to late payments of VAT.
Deliberate and The taxpayer has deliberately made an inaccurate return and has positively
concealed inaccuracy done something to conceal the inaccuracy such as produced false invoices or
bank statements.
Deliberate but not The taxpayer has deliberately made an inaccurate return but has not
concealed inaccuracy positively done anything to conceal the inaccuracy
Determinations If a return is not received by the filing date HMRC may make a determination
(to the best of its information and belief) of the tax due. This may include a
determination of any amounts added or deducted in the computation of the
tax payable, or any amount from which those figures are derived. The
determination must be made within three years of the statutory filing date.
The determination is treated as if it were a self assessment.
Direct taxes Paid by those who generate the funds to pay the tax eg, income tax.
Discovery assessments HMRC has the power via a discovery assessment to collect extra tax where it
discovers a loss of tax even if the normal time period in which it could open a
compliance check has passed.
HMRC can make a discovery assessment after the usual time for a compliance
check if it is discovered that full disclosure has not been made by the
taxpayer.
Dividend nil rate band The first £5,000 of taxable dividend income on which income tax is charged
at the dividend nil rate (0%).
Dividend income Distributions paid to shareholders by companies.
Dormant company One which is not carrying on a trade or business.
Employment income Includes income arising from an employment and the income of an office
holder such as a director. There are two types of employment income:
 General earnings
 Specific employment income (not in your syllabus).
European Union The overall aim of the European Union (EU) is the creation of a single
European market with no internal trade barriers between member states and
common policies relating to trade outside the EU.
Exempt ABGH Exempt dividends received from UK and overseas companies. Exempt ABGH
distributions distributions, other than those received from companies which are 51%
subsidiaries of the receiving company or 51% subsidiaries of a company of
which the receiving company is a 51% subsidiary, are added to taxable total
profits to give augmented profits.
Exempt supplies One on which output VAT cannot be charged. In general, input VAT cannot
be recovered by a trader making exempt supplies.
Familiarity threat May occur when, because of a close relationship, a professional accountant
becomes too sympathetic to the interests of others.
Finance Act Each year the Chancellor of the Exchequer presents the Budget, which
contains all the tax measures for the year ahead. The Budget has historically
been in March or April. However on 23 November 2016 the Chancellor of
the Exchequer announced a reform in the Budget procedure, stating that
2017 would be the last Spring Budget. From Autumn 2017, Britain moved to
a single annual fiscal event, the Autumn Budget. The statutory provisions to
effect these tax measures are set out in a single Bill: the annual Finance Bill.
Once enacted it becomes the Finance Act.
Financial year Runs from 1 April in one calendar year to 31 March in the next calendar year.
The financial year running from 1 April 2017 to 31 March 2018 is called
Financial Year (FY) 2017.
First year allowance A type of capital allowance, which offers tax relief at 100% on qualifying
expenditure in the year of purchase. There is no limit on the qualifying
amount although the qualifying assets are very restricted.
Flat rate scheme for Allows small businesses to calculate net VAT due by applying a flat rate
VAT percentage to their VAT inclusive turnover rather than accounting for VAT on
individual sales and purchases.
Future prospects test A person must register for VAT if, at any time, there are reasonable grounds
for VAT for believing that the taxable turnover in the next 30 days alone will exceed
the threshold.
If a person is liable to register under the future prospects test, he must notify
HMRC by the end of the 30-day period in which the threshold is expected to
be exceeded. This 30-day period includes the date the trader becomes aware
that the threshold is likely to be exceeded.
Registration takes effect from the beginning of the 30-day period.
General earnings A category of employment income including any salary, wages or fee, any
gratuity or other profit or incidental benefit of any kind obtained by an
employee consisting of money or money's worth, and anything else
constituting an emolument of the employment, together with anything
treated under any statutory provision as earnings (eg, benefits).
Gift Aid Gives tax relief for cash donations made by individuals to charities.
Gross income Income before any form of deduction has been made.
Historic test for VAT A person must register for VAT if, at the end of any month, the taxable
turnover in the prior period exceeds the threshold. The prior period is the
previous 12 months or the period from the commencement of the business,
whichever is the shorter.
If a person is liable to register under the historic test, he must notify HMRC
within thirty days of the end of the month in which the threshold was
exceeded (the relevant month).
Registration takes effect from the first day after the end of the month
following the relevant month.
Her Majesty's Revenue HMRC was established in 2005 as the UK's tax and customs authority,
& Customs responsible for making sure that money is available to fund the UK's public
services and for helping families and individuals with targeted financial
support. Through its customs service it facilitates legitimate trade and
protects the UK's economic, social and physical security.
Income tax Paid by individuals (employees, investors, partners and self-employed) on
their taxable income.
Income tax payable or The amount of income tax payable by a taxpayer (or repayable by HMRC)
repayable under self assessment after taking into account tax deducted at source.
Indirect taxes Relate to consumption. It is up to individuals whether they spend money on
such goods eg, value added tax.
Input VAT Each VAT registered business receives credit for any VAT that it has suffered
on its purchases. This credit is deducted from its output VAT to reduce how
much it owes to HMRC.
Integrity Professional accountants are required to be straightforward and honest in all
professional and business relationships.
Intimidation threat May occur when a professional accountant may be deterred from acting
objectively by actual or perceived pressures, including attempts to exercise
undue influence over the professional accountant.
Job related Accommodation is job related if:
accommodation
(a) The accommodation is necessary for the proper performance of the
employee's duties (eg, caretaker); or
(b) The accommodation is provided for the better performance of the
employee's duties and the employment is of a kind in which it is
customary for accommodation to be provided (eg, police officers); or
(c) The accommodation is provided as part of arrangements in force
because of a special threat to the employee's security (eg, members of
the government).
A director can only claim one of the first two exemptions if he or she owns
5% or less of the shares in the employer company and either they are a full-
time working director or the company is non-profit making or is a charity.
Limited cost trader A limited cost trader is a VAT-registered trader operating the flat rate scheme.
The flat rate applicable to a limited cost trader is 16.5%.
Loan relationship A company has a loan relationship if it loans money as a creditor or is loaned
money as a debtor.
A loan relationship includes bank and building society accounts, bank
overdrafts, government gilt-edged securities and loans to and from other
companies which are often in the form of debentures. It does not include
trade debts.
Making Tax Digital Making tax digital for business (MTDfB) is a government project which will
fundamentally change the UK tax system by ending the use of the tax return
in its current form for many taxpayers. It will simplify maintenance of records
and accuracy of tax liabilities for businesses and individuals. Under MTDfB
taxpayers will be required to maintain records digitally and make a quarterly
return of data to HMRC, with a final adjusting return when figures are
finalised.
MTDfB is being phased in and is expected to apply for income tax from April
2018 for certain taxpayers, income tax for remaining taxpayers and VAT for
all taxpayers from April 2019 and corporation tax from April 2020.
Marriage allowance A spouse or civil partner may elect to transfer £1,150 of their personal
allowance to their spouse/civil partner provided the transferor spouse either
has no income tax liability or would be a basic rate taxpayer after the transfer,
and the recipient spouse is a basic rate taxpayer.
Married couple's Additional allowance available for older married couples and registered civil
allowance (MCA) partners. The married couple's allowance (MCA) is not deducted from net
income to arrive at taxable income like the personal allowance. Instead the
MCA reduces an individual's income tax liability and is called a tax reducer.
The MCA tax reducer is calculated at a fixed rate of 10% of the relevant MCA
amount.
Modified VAT invoice A 'less detailed', or modified, invoice can be issued for retail supplies over
£250.
Money laundering The term used for a number of offences involving the proceeds of crime or
terrorist funds. It includes possessing, or in any way dealing with, or
concealing, the proceeds of any crime.
Money laundering All firms who are subject to the anti-money laundering (AML) rules must
reporting officer appoint a MLRO. The MLRO is responsible for oversight of the firm's
(MLRO) compliance with its AML obligations and should act as a focal point for the
firm's AML activity.
National Insurance Paid by self-employed individuals, employees and employers. The
Contributions (NIC) contributions are used to bear part of the liability of the government to pay
state benefits such as jobseekers allowance and state pensions.
National Crime Agency The NCA became operational in 2013 and replaced the Serious Organised
(NCA) Crime Agency (SOCA).
NCA tackles serious and organised crime, strengthens UK borders, fights
fraud and cyber-crime, and protects children and young people from sexual
abuse and exploitation.
As the UK's financial intelligence unit it receives suspicious activity reports
about money laundering and terrorist financing.
Net income For income tax purposes, it is the total chargeable income before deducting
the personal allowance.
Non-savings income Employment income, Trading profits, Property income, Miscellaneous
income. Income that is not categorised as from a specific source is taxed as
miscellaneous income.
Non-wasting chattel One with a predictable life at the date of disposal of more than 50 years.
Examples include antiques, jewellery and works of art.
Objectivity Professional accountants are required to not allow bias, conflict of interest or
the undue influence of others to override professional or business
judgements.
OECD The Organisation for Economic Cooperation and Development: the OECD's
model tax treaty forms the basis of many of the UK's international tax treaties.
Output VAT As the goods or services go through the production and distribution process,
each VAT registered business charges VAT on the value of the goods or
services it supplies. This VAT is collected on behalf of HMRC.
Overlap profits For income tax purposes, choosing a period of account which ends on a date
other than 5 April will result in double counting of trading profits. Such
profits are taxed more than once.
Partnership A partnership is a group of persons carrying on a business together with a
view to making a profit.
Pay As You Earn (PAYE) Pay As You Earn (PAYE) is HMRC's system for collecting income tax and
national insurance contributions from employees. The employer deducts tax
and national insurance contributions directly from employment income or
occupational pensions on behalf of HMRC.
Period of account The period for which a company has prepared its accounts.
Personal allowance The amount of income on which no income tax is charged.
Potential lost revenue The amount of tax outstanding at the end of the tax year (income tax and
(PLR) CGT) or accounting period (corporation tax). For VAT purposes it is the
amount outstanding as a result of the failure.
Proceeds of Crime Act POCA criminalises all forms of money laundering and creates other offences
2002 (POCA) such as failing to report a suspicion of money laundering and 'tipping off'.
Professional accountant A member of ICAEW.
Professional behaviour Professional accountants are required to comply with relevant laws and
regulations and avoid any action that discredits the profession.
Professional Conduct in The purpose of Professional Conduct in Relation to Taxation is to assist and
Relation to Taxation advise members on their professional conduct in relation to taxation, and
(PCRT) particularly in the tripartite relationship between a member, client and
HMRC. Part 2 explains the principles which govern the conduct of members.
Part 3 applies these principles to the day to day work of a tax adviser. Part 4
applies the principles to more specialist situations.
Professional Professional accountants are required to maintain professional knowledge and
competence and due skill at the level required to ensure that clients or employers receive
care competent professional service based on current developments in practice,
legislation and techniques and act diligently in accordance with applicable
technical and professional standards when providing professional services.
Profit sharing ratio The taxable trading profits of a partnership are allocated between the
partners according to the profit-sharing ratio agreed for the period of
account.
Progressive taxes Rise as a proportion of income as that income rises. For example, in the UK
the personal allowance means income tax is not paid at all on low levels of
income, whereas the rate of income tax on income of over £45,000 is 40%
and that on taxable income of over £150,000 is 45%.
Qualifying donations The amount paid by a company to a charity in the accounting period.
Real Time Information Employers are required to inform HMRC about tax, NICs and other
(RTI) deductions every time a payment is made to an employee, rather than after
the end of each tax year.
Regressive taxes Rise as a proportion of income as income falls. The amount of duty paid on a
packet of cigarettes is the same, regardless of the income of the purchaser.
That amount will be a greater proportion of the income of a person with a
low income than a person with a higher income.
Related 51% group Companies A and B are related 51% group companies if A is a 51% subsidiary
company of B, or B is a 51% subsidiary of A, or both A and B are 51% subsidiaries of
the same company. B is a 51% subsidiary of A if more than 50% of B's
ordinary share capital is owned directly or indirectly by A.
Safeguards Safeguards are measures that may eliminate threats or reduce them to an
acceptable level.
Savings income Interest from investments.
Savings income nil rate The first £1,000 (basic rate taxpayer) or £500 (higher rate taxpayer) of
band savings income, above the starting rate band, on which income tax is
charged at the savings nil rate (0%).
Self-interest threat May occur as a result of the financial or other interests of a professional
accountant or of an immediate or close family member.
Self-review threat May occur when a previous judgment needs to be re-evaluated by the
professional accountant responsible for that judgment.
Senior accounting Is the director who, in the company's reasonable opinion, has overall
officer (SAO) responsibility for the company's financial accounting. The SAO must take
reasonable steps to establish and maintain accounting systems within their
companies that are adequate for the purposes of accurate tax reporting.
Simple assessment HMRC can, if it has sufficient information, issue a simple assessment of an
individual's income tax or capital gains tax liability without the individual
completing a tax return.
Simplified VAT invoice A 'less detailed', or simplified, invoice can be issued for supplies under £250.
Small pool limit If the balance on the main pool, after additions and disposals but before
claiming the WDA, is less than the small pool limit of £1,000, a WDA can be
claimed up to the value of the small pool limit. This means that the main pool
may be written down to nil, rather than a small balance being carried forward
on which allowances have to be claimed each year.
Small profits threshold Class 2 NICs are not payable where an individual's taxable profits figure is
below the small profits threshold (previously known as the small earnings
exception).
State pension age The age at which an individual is entitled to receive the basic state pension
and cease paying NICs.
Supplies outside the A supply which has no effect for VAT purposes eg, the payment of wages or
scope of VAT dividends.
Surcharge liability If a taxable person files a VAT return late or pays VAT late, a default occurs
notice and a surcharge liability notice is issued. The surcharge liability period runs for
12 months from the end of the period of default.
Suspicious activity A report made to the National Crime Agency about suspicions of money
report (SAR) laundering or terrorist financing. This is commonly known as a 'SAR'.
Taxable income For income tax purposes, this is the net income after deduction of the
personal allowance.
Taxable person for VAT A person making taxable supplies who is, or who is required to be, registered
for VAT. Person includes a sole trader, a partnership (not the individual
partners) and a company.
Taxable supply for VAT Any supply of goods or services made in the UK other than an exempt supply
or a supply outside the scope of VAT.
Taxable total profits The sum of a company's income and gains less its qualifying donations paid
(TTP) for an accounting period.
Taxation at source Some income is received by the taxpayer net of tax, which means that tax is
already deducted at the source of the income. This simplifies the collection of
tax for HMRC.
Tax avoidance Any legal method of reducing a taxpayer's liability. The fact that avoidance is
legal does not mean that it will always be acceptable.
Tax evasion An illegal method of seeking to pay less tax than is due by deliberately
misleading HMRC. This may be attempted by either:
• suppressing information to which HMRC is entitled, for example by
– failing to notify HMRC of a liability to tax; or
– understating income or gains;
• or providing HMRC with false information, for example by
– deducting expenses that have not been incurred; or
– claiming capital allowances on plant that has not been purchased.
Tax liability The total amount of tax due from a taxpayer.
Tax point for VAT VAT becomes due on a supply of goods or services at the time of supply.
Normally VAT must be accounted for on the VAT return for the period in
which the tax point occurs.
The basic tax point is the date on which goods are removed or made
available to the customer or the date on which services are completed.
However, the actual tax point may occur before or after the basic tax point.
Tax year Runs from 6 April in one calendar year to 5 April in the next calendar year.
The tax year running from 6 April 2017 to 5 April 2018 is called the 2017/18
tax year.
Tax written down value Once the writing down allowance has been deducted from the pool balance,
(TWDV) the remainder of the value of the pool is then carried forward to the start of
the next period of account. This amount is called the TWDV. It continues to
be written down on a reducing balance basis.
Unit taxes Calculated as a flat rate per item, regardless of value.
Value Added Tax (VAT) A tax payable on the consumption of goods and services by the final
consumer.
VAT fraction VAT charged on taxable supplies is based on the VAT exclusive value of the
supply. For standard rated items, the rate of VAT is 20%. If the VAT inclusive
price is given, the VAT component of the consideration is:
20 1
or
120 6
Value taxes Based on a percentage of the value of the item, such as value added tax.
Voluntary payrolling Employers may voluntarily opt to process all benefits except accommodation
and beneficial loans through the payroll. Tax is then paid on these benefits
through RTI PAYE.
Wasting chattel One with a predictable life at the date of disposal not exceeding 50 years.
Examples include caravans, boats, and computers and animals. Plant and
machinery are always treated as having a useful life of less than 50 years.
Writing down For each period of account a business may claim a capital allowance known
allowance (WDA) as a WDA on a proportion of the value of its capital assets.

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The Institute of Chartered Accountants in England and Wales

For exams in 2018

4 Syllabus and learning outcomes 18

2.1 Module aim

2.2 Method of assessment

2.3 Specification grid

2 Focus on the exam

3 The right method

4 The right recap

Key study steps Activity

3.3 Detailed study guide

There are many other reliefs which reduce

1 Objectives, types of tax and ethics

3 Income tax and national insurance contributions

4 Capital gains tax and chargeable gains for companies

B/C Financial Management

Capital gains tax

National Insurance Contributions

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