To develop knowledge and skills relating to the tax system as applicable to individuals, single companies, and groups of companies.

DETAILED SYLLABUS

A. The UK tax system

• 1. The overall functions and purpose of taxation in a modern economy.
• 2. Different types of taxes
• 3. Principal sources of revenue law and practice
• 4. Tax avoidance and tax evasion

B. Income tax liabilities

• 1. The scope of income tax
• 2. Income from employment
• 3. Income from self – employment
• 4. Property and investment income
• 5. The comprehensive computation of taxable income and income tax liability
• 6. The use of exemptions and reliefs in deferring and minimizing income tax liabilities

C. Corporation tax liabilities

• 1. The scope of corporation tax
• 2. Profits chargeable to corporation tax
• 3. The comprehensive computation of corporation tax liability
• 4. The effect of a group corporate structure for corporation tax purposes
• 5. The use of exemptions and reliefs in deferring and minimizing corporation tax liabilities

D. Chargeable gains

• 1. The scope of the taxation of capital gains
• 2. The basic principles of computing gains and losses
• 3.Gains and losses on the disposal of movable and immovable property.
• 4. Gains and losses on the disposal of shares and securities
• 5. The computation of the capital gains tax payable by individuals
• 6. The use of exemptions and reliefs in deferring and minimizing tax liabilities arising on the disposal of capital assets.

E. National Insurance contributions

• 1. The scope of National Insurance
• 2. Class 1 and Class 1A contributions for employed persons
• 3. Class 2 and Class 4 contribution for self- employed persons.

F. Value added tax

• 1. The scope of value added tax
• 2. The VAT registration requirements
• 3. The computation of VAT liabilities
• 4. The effect of special schemes

G. The obligations of taxpayers and/ or their agents

• 1. The schemes for self- assessment and the making of returns
• 2. The time limits for the submission of information , claims and payment of tax, including payments on account
• 3. The procedures relating to enquires, appeals, and disputes
• 4. Penalties for non – compliance

APPROACH TO EXMINING THE SYLLABUS

The syllabus is assessed by a three- hour paper – based examination. The examination will be mainly computational and will comprise five compulsory questions:

Questions 1 and 2 will be worth a total of 55 marks with one question being worth 30 marks and the other 25 marks. One of these questions will focus on income tax and the other will focus on corporation tax

Question 3 will be worth 20 marks and will focus on chargeable gains (either personal or corporate)

Question 4 and 5 will be on any area of the syllabus and will be worth 15 marks and 10 marks respectively.

There will always be a minimum of 10 marks available for value added tax on any paper. There marks might be included as part of a question, or might be a separate question on value added tax.

National Insurance contributions will not be examined as a separate question, but may be examined in any question involving income tax or corporation tax.
Groups and overseas aspects will only be examined in Question 2, and will account for no more than eight marks in total on anyone examination paper.
Chargeable gains can be examined in questions other than Questions 3 (For example part of a corporation tax or business income tax scenario)
Any of the five questions might include the consideration of issues relating to the minimization or deferral of tax liabilities.