Embark on a comprehensive journey through the intricacies of taxation with the ACCA’s Taxation (TX) paper, designed to cultivate your understanding and application of tax principles in various contexts.
The Taxation (TX) paper aims to develop your knowledge and skills relating to the tax system, as applicable to individuals, single companies, and groups of companies. This paper ensures you are well-versed in the computation of tax liabilities, the preparation of tax returns, and the provision of basic tax advice.
The TX exam tests your ability to apply tax knowledge in practical scenarios:
Exam Duration: 3 hours
Exam Format: Computer-Based Exam
Question Types: Objective Test Questions, Multi-Task Questions, and Constructive Response Questions
Total Marks: 100
Pass Mark: 50%
Section A: 15 Objective Test Questions
Section B: 3 Multi-Task Questions
Section C: 1 Constructive Response Question
The UK tax system and its administration
- The overall function and purpose of taxation in a modern economy
- Principal sources of revenue law and practice
- The systems for self-assessment and the making of returns
- The time limits for the submission of information, claims and payment of tax, including payments on account
- The procedures relating to compliance checks, appeals and disputes
- Penalties for non-compliance
Income tax and NIC liabilities
- The scope of income tax
- Income from employment
- Income from self-employment
- Property and investment income
- The comprehensive computation of taxable income and income tax liability
- National insurance contributions for employed and self-employed persons
- The use of exemptions and reliefs in deferring and minimising income tax liabilities
Chargeable gains for individuals
- The scope of the taxation of capital gains
- The basic principles of computing gains and losses
- Gains and losses on the disposal movable and immovable property
- Gains and losses on the disposal of shares and securities
- The computation of capital gains tax
- The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets
- The basic principles of computing transfers of value
- The liabilities arising on chargeable lifetime transfers and on the death of an individual
- The use of exemptions in deferring and minimising inheritance tax liabilities
- Payment of inheritance tax
Corporation tax liabilities
- The scope of corporation tax
- Taxable total profits
- Chargeable gains for companies
- The comprehensive computation of corporation tax liability
- The effect of a group corporate structure for corporation tax purposes
- The use of exemptions and reliefs in deferring and minimising corporation tax liabilities
Value added tax (VAT)
- The VAT registration requirements
- The computation of VAT liabilities
- The effect of special schemes
Employability and technology skills
- Use computer technology to efficiently access and manipulate relevant information.
- Work on relevant response options, using available functions and technology, as would be required in the workplace.
- Navigate windows and computer screens to create and amend responses to exam requirements, using the appropriate tools.
- Present data and information effectively using the appropriate tools.
Exam Preparation and Tips
Master the Basics: Ensure a solid understanding of the fundamental principles of taxation.
Practice Computations: Regularly practice tax computations to build confidence.
Understand Tax Planning: Develop an ability to provide basic tax advice.
Stay Updated: Keep abreast of any changes in tax legislation and practice.
Time Management: Efficiently allocate time to all sections of the exam to ensure completion.