To apply relevant knowledge and skills and exercise professional judgement in providing relevant information and advice to individuals and businesses on the impact of the major taxes on financial decisions and situations.

DETAILED SYLLABUS:

A. Knowledge and understanding of the UK tax system through the study of further capital taxes, together with more advanced topics within the taxes studied previously.

• 1. Income and income tax liabilities in situations involving further overseas aspects and in relation to trusts, and the application of additional exemptions and reliefs.
• 2. Corporation tax liabilities in situations involving further overseas and group aspects and in relation to special types of company, and the application of additional exemptions and reliefs.
• 3. Chargeable gains and capital gains tax liabilities in situations involving further overseas aspects and in relation to closely related persons and trusts, and the application of additional exemptions and reliefs.
• 4. Inheritance tax
• 5. Stamp duty and stamp duty land tax
• 6. National Insurance, value added tax and tax administration

B. The importance of taxation to personal and corporate financial management

• 1. The principles underlying personal financial management.
• 2. How an individual’s personal financial objectives may differ depending on their circumstances and expectations.
• 3. The common forms of personal finance and investment products in a given set of circumstances, including ethical considerations.
• 4. How a business’ financial objectives may differ depending on its circumstances and the business environment.
• 5. How taxation can affect the financial decisions made by businesses (corporate and unincorporated) and by individuals.
• 6. Other considerations, personal and commercial, which might affect a financial decision.

C. The impact of relevant taxes on various situations and courses of action, including the interaction of taxes

• 1. Taxes applicable to a given situation or course of action and their impact.
• 2. Alternative ways of achieving personal or business outcomes may lead to different tax consequences.
• 3. Tax advantages and/or disadvantages of alternative courses of action. 6
• 4. Statutory obligations imposed in a given situation, including any time limits for action and the implications of non-compliance.

D. Minimising and/or deferring tax liabilities by the use of standard tax planning measures

• 1. Types of investment and other expenditure that will result in a reduction in tax liabilities for an individual and/or a business.
• 2. Legitimate tax planning measures, by which the tax liabilities arising from a particular situation or course of action can be mitigated.
• 3. The appropriateness of such investment, expenditure or measures, given a particular taxpayer’s circumstances or stated objectives.
• 4. The mitigation of tax in the manner recommended, by reference to numerical analysis and/or reasoned argument.
• 5. Ethical and professional issues arising from the giving of tax planning advice.
• 6. Current issues in taxation.

E. Communicating with clients, HM Revenue and Customs and other professionals

• 1. Communication of advice, recommendations and information in the required format.
• 2. Presentation of written information, in language appropriate to the purpose of the communication and the intended recipient.
• 3. Conclusions reached with relevant supporting computations.
• 4. Assumptions made or limitations in the analysis provided, together with any inadequacies in the information available and/or additional information required to provide a fuller analysis.
• 5. Other non-tax factors that should be considered.

APPROACH TO EXAMINING THE SYLLABUS

The paper consists of two sections:
Section A consists of two compulsory questions for a total of between 50 and 70 marks. Marks may not be allocated evenly between the two questions.
Section B consists of three questions, two of which must be answered. Each question will have the same number of marks, ranging from 15 marks each to 25 marks each.

Questions will be scenario based and will normally involve consideration of more than one tax, together with some elements of planning and the interaction of taxes. Computations will normally only be required in support of explanations or advice and not in isolation.