Introduction to the ACCA F6 Exam and the syllabus
On successful completion of this paper candidates should be able to:
- Explain the operation and scope of the tax system and the obligations of taxpayer and/or their agents and the implications of non-compliance
- Explain and compute the income tax liabilities of individuals and the effect of national insurance contributions (NIC) on employees, employers and the self-employed
- Explain and compute the Corporation Tax liabilities of individual companies and groups of companies Explain and compute the Chargeable
- Gains arising on companies and individuals
- Explain and compute the Inheritance Tax liabilities of individuals
- Explain and compute the effects of Value Added Tax on incorporated and unincorporated businesses
Position of the paper in the overall syllabus
The syllabus for Paper F6, Taxation, introduces candidates to the subject of taxation and provides the core knowledge of the underlying principles and major technical areas of taxation as they affect the activities of individuals and businesses.
Candidates are introduced to the rationale behind and the functions of the tax system. The syllabus then considers the separate taxes that an accountant would need to have a detailed knowledge of, such as income tax from self-employment, employment and investments, the corporation tax liability of individual companies and groups of companies, the national insurance contribution liabilities of both employed and self employed persons, the value added tax liability of businesses, the chargeable gains arising on disposals of investments by both individuals and companies, and the inheritance tax liabilities arising on chargeable lifetime transfers and on death..
Having covered the core areas of the basic taxes, candidates should be able to compute tax liabilities, explain the basis of their calculations, apply tax planning techniques for individuals and companies and identify the compliance issues for each major tax through a variety of business and personal scenarios and situations.
Approach to examining the syllabus
The syllabus is assessed by a three-hour paper-based examination. There will be 15 minutes reading and planning time given at the start of the exam.
Assessment: Taxation (GBR)
The paper will be predominantly computational and all questions are compulsory Section A of the exam comprises 15 multiple choice questions of 2 marks each Section B of the exam comprises four 10 mark questions and two 15 mark questions The two 15 mark questions will focus on income tax and corporation tax
The section A questions and the other questions in section B can cover any area of the syllabus.