Income tax (UK)
UK income tax can apply to employment income, self-employment profits, pensions, property income, savings and dividends, subject to the relevant rules. In a computation, income categories, deductions and allowances affect taxable income and the tax calculation. Not all receipts are taxable, and rates, thresholds, reliefs and territorial rules depend on the tax year and circumstances. For TX-UK June 2026–June 2027, use the Finance Act 2025 assessment basis and the exam’s specified scope.
Worked example
A taxpayer has employment income and bank interest. They identify each income category and apply the allowances and rates specified for the relevant tax year when calculating tax.
Common mistake
Applying one undated rate to all income or assuming all money received is taxable income.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |