MODULE SPECIFICATION

Module Title: Module Code: AC5004 Module Leader:

(was AC2039 /AC3050)
TAXATION Christina Stirk
Level: 2

Credit: 30

ECTS credit: 15
Pre-requisite: AC4001 (was AC1016) Pre-cursor: None

Co-requisite: None Excluded combinations: None

Location of delivery: UEL - Docklands

Main aim(s) of the module:

The module aims to develop students’ knowledge and understanding of taxation concepts and principles
relating to individuals, partnerships, single and groups of companies operating in the UK and overseas
business activities.

Main topics of study:

General Principles of Taxation

UK taxation legislation: principal UK taxes; legal framework; tax avoidance versus tax evasionOrganisation
and functions of the Inland Revenue
Self assessment systems for individuals and companies: enquiries, appeals, interest & penalties

Income Tax
Scope of Income Tax: concept of residence; rates and allowances of tax; income tax liability computationTaxation of
a trade or profession: trading income; capital allowances; bases of assessment; loss relief; partnerships
Taxation of the employee: Emoluments; Benefits In Kind; PAYE system; charitable giving Taxation of
Property: Property Business Income; Rent-a-room scheme; Furnished Holiday LettingInvestment Income:
Exempt Investments; Savings; Dividends
Gift Aid Donations; personal and occupational pension schemes; NICs

Capital Gains Tax

Scope of capital gains tax: exempt and chargeable persons, assets and disposals.
Computation of gains and losses on disposal and gift of chargeable assets; part disposals; insurance proceeds,
wasting assets, principal private residence, shares & securities, takeovers & reorganisations Exemptions and relief:
Inter-spouse exemption; loss relief; PPR and letting relief, holdover relief, rolloverrelief, entrepreneur relief.

Corporation Tax
Scope of corporation tax: concept of residence; taxable total profits; FII; rates of tax; CT liability;Loss
relief: trading loss; property business loss; choice of loss relief claim
Group of companies: associated companies; group relief; inter group transfers

Value Added Tax

Scope of VAT: administration; registration; accounting for VAT; assessment; interest & penaltiesSpecial
VAT schemes: cash accounting and annual accounting schemes, flat rate schemes

Inheritance Tax
Scope of IHT: general principles of Transfer of Values – exempt, PETs, CLTs
Exemptions and relief: small gift relief; marriage exemption; annual exemption; inter-spouse exemption; nilrate
band; taper relief
Computation and payment of IHT on chargeable lifetime gifts and death estate

Tax Planning
Tax efficient ways of minimising and deferring tax liabilities through effective use of exemptions and reliefsTax
efficient choice of business medium and extraction of profits.

34
Learning Outcomes for the module

At the end of this module, students will be able to:

Knowledge
1. Explain the organisation, operation and administration of the UK taxation system
2. Explain the taxations concepts and principles in relation to different business mediums operating
both within and outside the UK.

Thinking skills
3. Analyse and apply the appropriate principles of direct and indirect taxation in computing the
taxation liabilities of individuals including employees, sole traders, partnerships and death estates,
and of single companies, groups of companies and overseas activities

Subject-based practical skills

4. Recommend tax planning advice based upon the evaluation of tax exemptions and reliefs to
minimise or defer tax liabilities

Skills for Life and Work (General Skills)

5. Evaluate and interpret underlying concepts and principles including handling numerical and other
data

Teaching/ learning methods/strategies used to enable the achievement of learning outcomes:

Lectures & workshops – to introduce theoretical principles and concepts of lecture topics and illustrate
with examples.
Seminars – used as a forum for discussion of the lecture topic and problem solving through student
participation, individually or in groups. This will enable students to develop skills of explaining, analysing
and evaluating information, and applying relevant taxation concepts and principles in a variety of
circumstances encountered by businesses in the commercial environment.
Guided reading and independent study – students will be expected to do additional reading where
appropriate, and work through exercises and prescribed tutorial scenario questions outside contact times
to enable students to participate with relevant and appropriate discussions in workshops and seminars
Formative assessments and feedback sessions – to reflect on learning progression and revision

Assessment methods which enable students to demonstratethe Weighting: Learning

learning outcomes for the module: Outcomes
demonstrated
Component 1
Unseen examination of 3 hours 100% 1-5

Reading and resources for the module:

Core
ACCA Paper F6 Taxation Study Text (FA 2013), Berkshire: Kaplan Publishing

Recommended
Lymer, A and Hancock, D (2013) Taxation, policy and practice FA 2013, Birmingham: Fiscal Publications

Melville, A. (2012) Taxation FA 2013, Harlow: Prentice Hall

Nightingale, K. (2013) Taxation, theory and practice FA 2013, Harlow: Prentice Hall.

Taxation journals (most recent or as directed in lectures) – guidance on search facilities on the Internet are
available from the UEL Learning Resource Centre

Indicative learning and Activity

teaching time:

35
1. Student/tutor
interaction,:
48 hours lectures
72 hours 24 hours seminars

2. Student learning time:

228 hours Additional reading, practise questions, tutorial preparation and self-assessmentand
revision for end of semester examination
Total hours (1 and 2): 300 hours

36