ACCA TX-UK study guide
ACCA TX-UK · Work through your exam, one topic at a time.
ACCA Taxation (TX) is a Fundamentals-level exam in the ACCA Qualification. ACCA describes it as developing "knowledge and skills relating to the tax system as applicable to individuals, single companies and groups of companies." It suits students who have completed the earlier Fundamentals exams and are moving into applied technical material, and it is also relevant to finance professionals who need working knowledge of UK tax computations. The ACCA TX-UK study guide has 5 sections and about 1,560 words.
01The UK Tax System and Tax Administration
Candidates must know the difference between tax law (statute, chiefly the annual Finance Acts) and tax practice (HMRC guidance, statements of practice, extra-statutory concessions). Note the constitutional convention that taxes are renewed annually, and know the roles of the main bodies: HMRC (collection and administration), the Treasury (policy), and the tribunals/courts (appeals).
360 words, about 2 min02Income Tax and NIC for Individuals
Build the computation by taxable income : total income less reliefs (e.g. trading losses, qualifying loan interest, gift aid and pension contributions extend the basic and higher rate bands).
311 words, about 2 min03Chargeable Gains and Inheritance Tax
Understand the chargeable gain computation: disposal proceeds less allowable cost (including incidental costs of acquisition and disposal, and enhancement expenditure reflected in the asset). Know the annual exempt amount (£6,000 for 2023/24, £3,000 from 2024/25), the share matching rules (same-day, then 30-day, then pooled shares), and reliefs - principal private residence, business asset disposal, gift relief, rollover, and entrepreneurs' relief successors.
302 words, about 2 min04Corporation Tax and Groups
Learn the adjusted trading profit computation: accounting profit, add back disallowables (depreciation, entertaining, capital, fines), deduct capital allowances, then adjust for other income and chargeable gains. Understand capital allowances : plant and machinery, the annual investment allowance, writing-down allowances, and the super-deduction/full expensing rules.
307 words, about 2 min05VAT and Other Taxes
Understand registration (compulsory when taxable turnover exceeds £85,000 in a 12-month period, or expected to exceed in the next 30 days), deregistration , and the taxable supplies categories: standard-rated (20%), zero-rated, reduced (5%), exempt, and outside the scope. Know the difference between output tax and input tax , and the rules on input tax recovery - blocked input tax (entertaining, cars, non-business), and partial exemption for mixed-use businesses.
280 words, about 1 min