The aim of the paper is to ensure that candidates have an understanding of thetax system, and a knowledge of income tax, national insurance contributions,capital gains tax, inheritance tax, corporation tax and value added tax. Thesyllabus covers virtually everything dealt with in Paper FTX, the Foundationsin Taxation paper as well as some new topics introduced at the Paper F6 level.The paper provides a solid basis for those candidates who wish to progress toPaper P6 (UK), Advanced Taxation.
The paper consists of two sections,with all questions within each section being compulsory.
Section A will be comprised of 15multiple-choice questions worth two marks each. The questions could be on anyarea of the syllabus, and will be a mix of computational and narrative.
Section B will be comprised of four10-mark questions and two 15-mark questions.
The four 10-mark questions could be onany area of the syllabus. Given that Section A is the same, this means that itis very important for students to study the whole of the syllabus.
The two 15-mark questions will focus onincome tax (syllabus area B) and corporation tax (syllabus area E).
Questions in Section B will bepredominantly computational, although each question may contain writtenelements, and it is possible that an entirely written answer might be required.
The most important syllabus areas thatyou can expect to see frequently examined are as follows:
·Income from employment (in particular, the incomeassessable, the allowable deductions and benefits).
·Income from self-employment (in particular, the basis ofassessment, the expenditure that is allowable, assessable profits oncommencement and cessation, capital allowances and relief for trading losses).
·Property and investment income (in particular, propertybusiness profits, savings income and dividend income).
·The computation of taxable income and the income taxliability.
·The self-assessment system.
·The time limits for the submission of information, claimsand payment of tax.
·Computation of a person’s chargeable gains.
·Computation of the amount of allowable expenditure for apart disposal.
·Computation of the chargeable gain when a chattel isdisposed of.
·Computation of the exemption when a principal privateresidence is disposed of.
·The share identification rules as they apply toindividuals and to companies.
·The computation of the capital gains tax payable byindividuals.
·Exemptions and reliefs (entrepreneurs’ relief, rolloverrelief and holdover relief for gifts).
INHERITANCE TAX (IHT)
·The seven-year accumulation principle.
·The IHT liabilities arising on lifetime transfers.
·The IHT liability on a death estate.
·The annual exemption and the exemption for gifts betweenspouses.
·The payment of IHT.
·Taxable total profits (in particular, the expenditurethat is allowable in calculating the tax-adjusted trading profit, capitalallowances, property business profits, chargeable gains and relief for tradinglosses).
·Computation of the corporation tax liability.
VALUE ADDED TAX (VAT)
·The circumstances in which a person must register forVAT.
·The computation of VAT liabilities (in particular, thetax point, the valuation of supplies, non-deductible input VAT and relief forimpairment losses on trade debts).
·The cash accounting, annual accounting and flat rateschemes.
FINANCE ACT ARTICLE
Candidates sitting Paper F6 (UK), Taxation shouldread the relevant Finance Act article which is published each year on the ACCAwebsite as this article is highly relevant to Paper F6 (UK).
Other technical articles are also available on the ACCA website to assiststudents in preparing for exams.
Written by a member of the Paper F6 (UK) examining team
Updated March 2015
Last updated: 31 Mar 2015