In the ACCA (Association of Chartered Certified Accountants) Applied Skills level, TX (Taxation) UK introduces the core principles of the UK tax system as they apply to individuals and businesses.
TX (UK) Syllabus Areas
The curriculum is organized into seven key functional areas:
- A. UK Tax System & Administration: The purpose of taxation, principal sources of revenue law, and the administrative obligations (e.g., self-assessment, returns, and penalties for non-compliance).
- B. Income Tax & National Insurance (NIC): Calculating taxable income from employment, self-employment, property, and investments, plus NIC for employees and the self-employed.
- C. Chargeable Gains for Individuals: Computing capital gains and losses on asset disposals and applying relevant reliefs.
- D. Inheritance Tax (IHT): Basic liabilities arising on lifetime gifts and on death.
- E. Corporation Tax: Calculating taxable profits for single companies and basic group structures, including adjusted trading profits and capital allowances.
- F. Value Added Tax (VAT): Understanding VAT registration, calculation of tax on goods/services, and the impact on businesses.
- G. Employability & Technology Skills: Using digital spreadsheets and word processing tools to present tax computations professionally.
Key Learning Outcomes
Upon successful completion, you should be able to:
- Explain the rationale behind the UK tax system and identify taxpayer obligations.
- Compute individual income tax and NIC liabilities accurately.
- Determine chargeable gains for individuals and apply exemptions.
- Calculate IHT liabilities for lifetime transfers and estates.
- Compute corporation tax for companies and small groups.
- Evaluate the effects of VAT on various business transactions.
Exam Structure
- Format: 3-hour computer-based exam (CBE).
- Section A: 15 objective test questions (2 marks each) covering the full syllabus.
- Section B: 3 case-based scenarios, each with 5 questions (2 marks each).
- Section C: One 10-mark and two 15-mark long questions, typically focusing on Income Tax and Corporation Tax