CTA Part 2 study guide
CTA Part 2 · Work through your exam, one topic at a time.
The Chartered Tax Adviser (CTA) qualification is described by the Chartered Institute of Taxation (CIOT) as the UK's highest-level tax qualification, and the CIOT describes itself as the leading body in the UK for taxation professionals dealing with all aspects of taxation, with promoting education in taxation as its primary purpose. Part 2 (Advanced Technical) is the stage at which candidates are examined on applied technical analysis across the core tax heads - income tax and National Insurance contributions, corporation tax, capital gains tax, inheritance tax and trusts, VAT and indirect taxes, and tax administration, ethics and professional responsibilities - rather than on isolated rule recall. The CTA Part 2 study guide has 6 sections and about 2,073 words.
01Income Tax and National Insurance contributions
Build every income tax answer through the same chain: total income → net income (deduct trading losses, grossed-up Gift Aid and relief-at-source pension contributions) → taxable income (deduct the personal allowance) → tax charged by band and by income type. The order of taxation is decisive: non-savings income first, then savings, then dividends, each stacked into the basic, higher and additional bands.
362 words, about 2 min02Corporation Tax
Corporation tax is charged on the taxable total profits of a company. Profits = trading income plus property income plus non-trading loan relationship credits plus chargeable gains, less qualifying charitable donations and certain relieves.
353 words, about 2 min03Capital Gains Tax
Start with the chargeable person, the chargeable asset and the disposal event, then compute: proceeds (or market value for connected parties, gifts and certain transfers) less allowable acquisition cost, incidental costs and enhancement expenditure, less the annual exempt amount, taxed at the rate for the asset and the taxpayer's band position. Residential property and carried interest gains sit at 18%/24%; other gains at 18%/24% for individuals from 2024/25, with trustees and personal representatives paying the higher rate.
351 words, about 2 min04Inheritance Tax and trusts
IHT is a cumulative lifetime transfer tax. The tax on death is charged on the death estate plus failed PETs in the seven years before death, with lifetime chargeable transfers cumulated first in the seven-year period.
332 words, about 2 min05VAT and indirect taxes
VAT is a tax on the supply of goods and services by a taxable person in the course or furtherance of business, with place of supply, time of supply (tax point), value of supply and rate all examinable separately. Register when taxable turnover exceeds £90,000 in any rolling twelve months (historic test, registration effective from the end of the month following the breach) or when it is expected to exceed £90,000 in the next thirty days alone (forward look).
336 words, about 2 min06Tax administration, ethics and professional responsibilities
Administration questions reward precise knowledge of deadlines and powers. Self assessment: register by 5 October following the tax year, file paper returns by 31 October or online by 31 January, pay by 31 January with payments on account due 31 January and 31 July.
339 words, about 2 min