ACCA TX
ACCA Taxation (TX) Flashcards
What are the 3 different categories of Total Income included in an Income Tax computation?
Name the sources of income included in each category in the Income Tax computation.
What is the basis of assessment for employment income?
What is the basis of assessment for a continuing source of trading income?
What is the normal basis of assessment to apply to property income, what option is available to the taxpayer and when is that option compulsory?
What basis of assessment applies to interest income?
What basis of assessment applies to dividend income?
What deductions are made from Total Income to compute Net Income?
What is the difference between Net Income and Taxable Income?
In what order are the deductions from both Total and Net Income deducted?
What types of interest income are exempt from Income Tax?
In what order are the categories of Taxable Income charged to Income Tax?
What is the difference between Income Tax Liability and Income Tax Payable?
How do you calculate the adjusted net income (ANI) of the taxpayer?
Why is ANI computed?
What is the tax treatment of a gift aid payment in preparing the Income Tax computation?
Are pension contributions paid by an individual treated the same way for tax purposes as gift aid payments?
How is income of a jointly-let property taxed on husband and wife?
What is the tax treatment of mortgage (loan) interest paid by a taxpayer on a residential let property in the calculation of property income?
Explain the operation of the transferrable amount of the PA (marriage allowance).
In what circumstances would the election to transfer the transferrable amount be beneficial and when must it be made?
Describe what tax relief would be available if a trader paid a premium on a short lease for trading purposes.
Describe what capital allowances would be available if an unincorporated trader bought a car with CO2 emissions for use by an employee during a 9 month accounting period. How would this differ if the car had some private use by the owner of the business?
An unincorporated trader has always been profitable and prepared accounts to 31 March each year. In the year ended 31 March 2026 the trader made a loss. Describe the ways in which the loss could be relieved.
How should the adjusted trading profit or loss of a partnership be divided?
How should each partner’s share of adjusted trading profit then be assessed on the partners?
If an employee has the use of job related accommodation, what assessable benefit arises in relation to the property?
What is job related accommodation?
What information about a car is needed to be able to determine the assessable employment income benefit?
What reduction is made to the assessable fuel benefit if the employee contributes towards the cost of fuel for private use?
How is the assessable benefit calculated if an employee is provided by an employer with the private use of an asset?
What category of NIC is payable by the self employed?
What categories of NIC are suffered by an employee?
What categories of NIC are suffered by employers?
In what circumstances will an Annual Allowance (AA) Charge arise on a taxpayer?
In what circumstances must a chargeable gain be computed?
What makes a company UK resident for UK Corporation Tax purposes?
What are the consequences of a company being treated as UK resident for UK Corporation Tax purposes?
What is a company’s accounting period/period of account?
What is a financial year for Corporation Tax and what is its purpose?
For what period is a Corporation Tax computation prepared?
If a company is not large by when must it pay its Corporation Tax?
How does a large company pay its Corporation Tax?
How do you determine if a company is large?
When does an accounting period start?
When does an accounting period end?
What is included in the computation of “Total Profits” in the Corporation Tax computation?
What is the difference between “Total Profits” and “Taxable Total Profits”
In the adjustment of trading profit for a company, what is the treatment of motor expenses where the vehicle has some private use by a director/employee?
What is the tax treatment of loan interest payable on a loan taken out by a company to buy shares in another company?
If a car is provided by a company for the business and private use of the owner/manager of the company, what tax relief is available for the cost of the car?
What tax relief, if any, is available to a company when it buys business premises?
For Corporation Tax purposes what happens when a company changes its accounting date by preparing accounts for a 15 month period?
If a company incurs a trading loss for an accounting period, how can it be relieved as soon as possible?
Can a company choose to use only part of a loss when making a claim?
Can a company ever carry back a loss for more than 12 months?
How can a company use a capital loss?
Explain the tax issues that arise if both subsidiaries incur trading losses in the current period.
A company has 2 subsidiary companies, one wholly owned and the other 60% owned, what AIA is available?
Explain the tax issues that arise if the parent company incurs a capital loss while both subsidiaries realise chargeable gains in the current period.
If company A owns 80% of company V, which in turn owns 80% of company FC, which companies are in a group for loss relief purposes?
If company A owns 75% of company V, which in turn owns 75% of company FC, which companies are in a group for chargeable gains purposes?
How does the calculation of a chargeable gain for a company differ from how a gain is computed for an individual?
If a net capital loss arises on disposals made by a single company in an accounting period, what happens to the net capital loss?
When a company disposes of shares in another company what is the order in which the shares sold are matched with acquisitions?
What difference arises in the tax treatment of shares acquired by a company in the form of a bonus issue and a rights issue?
For VAT purposes what types of supply may be made by a trader?
What is the difference between making zero rated supplies and exempt supplies?
Based on past turnover in what circumstances must a trader compulsorily register for VAT?
Based on past turnover by what date must a company notify HMRC of its requirement to register for VAT and from when will it be registered?
Based on future turnover in what circumstances must a trader compulsorily register for VAT?
Based on future turnover by what date must a company notify HMRC of its requirement to register for VAT and from when will it be registered?
Why might a trader voluntarily register for VAT?
In what circumstances can input VAT incurred prior to VAT registration be recovered by a trader?
In what circumstances must a trader deregister for VAT or choose to deregister?
In what circumstances would a disposal of the assets and trade of a business be outside the scope of VAT?
In relation to the supply of goods or services, what is the significance of the tax point?
What date will determine the tax point?
Is output tax charged on the sales figure before or after deducting a prompt payment discount?
Is relief available for the output tax on a sale when the amount of the debt cannot be collected?
For what periods of time may a VAT return be submitted?
In what circumstances may a trader use the cash accounting scheme and when must they leave?
In what circumstances may a trader use the annual accounting scheme and when must they leave?
What is the VAT treatment of sales of goods made to customers resident overseas?
Explain how to deal with the CGT implications of a gift made by an individual of a chargeable asset?
If an individual has a mix of both gains and losses arising in a tax year, and capital losses brought forward, how are they dealt with?
In what circumstances does a chargeable disposal arise for an individual?
What tax rates may apply to an individuals’ taxable gains?
Capital losses and AEA are deducted from the gains made by a taxpayer in the tax year in what beneficial order?
By what date must the CGT liability for the 2025/26 tax year be paid assuming no disposals of residential property?
When must a payment on account be made on the disposal of a residential property?
How is the payment on account calculated?
Assuming a taxpayer made no disposals of residential property or assets qualifying for either business asset disposal relief or investors' relief, describe how the Capital Gains Tax liability is calculated.
If an individual sells a chargeable asset to his daughter for half of its market value of £100,000, what amount in used as proceeds in the Capital Gains Tax computation?
On what basis are chargeable assets transferred between spouses or civil partners?
If a taxpayer disposes of 25% of a plot of land originally purchased at a total cost of £100,000, how would the allowable cost of the part-disposal be calculated?
How would you compute a chargeable gain arising on a disposal of a painting for sale proceeds of more than £6,000 which had cost less than £6,000?
When an individual disposes of shares in a company what is the order in which the shares sold are matched with acquisitions?
When an individual sells shares in a company what conditions need to be satisfied for the sale to qualify for business asset disposal relief?
When an individual sells shares in a company what conditions need to be satisfied for the sale to qualify for investors’ relief?
When land and buildings are sold at a gain by a business, what conditions must be satisfied for the gain to be fully deferred by a claim for rollover relief?
How is the gain deferred on a claim for rollover relief when the replacement asset is not a depreciating asset?
In a rollover relief claim, what would happen if the replacement asset was fixed plant and machinery to be used in the trade?
What assets qualify for gift relief when an individual makes a gift of that asset?
When an individual sells his / her private residence, what periods of non-occupation by the individual are treated as deemed occupation?
In what circumstances will Inheritance Tax potentially become payable?
How do you compute a transfer of value for Inheritance Tax?
What rates of Inheritance Tax may be charged on the death estate?
In what circumstances can an Inheritance Tax charge of 40% made on a lifetime transfer made within 7 years prior to the date of death be reduced by taper relief?
What rate of tax above the nil rate band is chargeable on a transfer of value made in lifetime into a discretionary trust and who pays the tax where no information is given?
What exemptions may be deducted from a lifetime transfer of value in computing the net CLT or PET figure?
What other exemptions are available to fully exempt a lifetime transfer?
What are the CGT implications of a taxpayer making a gift in lifetime to his daughter of half his 60% holding in an unquoted trading company which he had held for several years and in which he worked?
What are the Inheritance Tax implications of the above transfer?
Card 1 of 114. Question side.