Taxation (UK) (F6) Syllabus rationale

Exams in the financial This is a narrative explaining how the syllabus is

structured and how the main capabilities are linked.
year 1 April 2015 to 31 The rationale also explains in further detail what the
examination intends to assess and why.
March 2016
Detailed syllabus

This syllabus and study guide is designed to help This shows the breakdown of the main capabilities
with planning study and to provide detailed (sections) of the syllabus into subject areas. This is
information on what could be assessed in the blueprint for the detailed study guide.
any examination session.
Approach to examining the syllabus
THE STRUCTURE OF THE SYLLABUS AND
STUDY GUIDE This section briefly explains the structure of the
examination and how it is assessed.
Relational diagram of paper with other papers
Study Guide
This diagram shows direct and indirect links
between this paper and other papers preceding or This is the main document that students, tuition
following it. Some papers are directly underpinned providers and publishers should use as the basis of
by other papers such as Advanced Performance their studies, instruction and materials.
Management by Performance Management. These Examinations will be based on the detail of the
links are shown as solid line arrows. Other papers study guide which comprehensively identifies what
only have indirect relationships with each other could be assessed in any examination session.
such as links existing between the accounting and The study guide is a precise reflection and
auditing papers. The links between these are shown breakdown of the syllabus. It is divided into sections
as dotted line arrows. This diagram indicates where based on the main capabilities identified in the
you are expected to have underpinning knowledge syllabus. These sections are divided into subject
and where it would be useful to review previous areas which relate to the sub-capabilities included
learning before undertaking study. in the detailed syllabus. Subject areas are broken
down into sub-headings which describe the detailed
Overall aim of the syllabus outcomes that could be assessed in examinations.
These outcomes are described using verbs
This explains briefly the overall objective of the indicating what exams may require students to
paper and indicates in the broadest sense the demonstrate, and the broad intellectual level at
capabilities to be developed within the paper. which these may need to be demonstrated
(*see intellectual levels below).
Main capabilities
INTELLECTUAL LEVELS
This paper’s aim is broken down into several main
capabilities which divide the syllabus and study The syllabus is designed to progressively broaden
guide into discrete sections. and deepen the knowledge, skills and professional
values demonstrated by the student on their way
Relational diagram of the main capabilities through the qualification.

This diagram illustrates the flows and links between The specific capabilities within the detailed
the main capabilities (sections) of the syllabus and syllabuses and study guides are assessed at one of
should be used as an aid to planning teaching and three intellectual or cognitive levels:
learning in a structured way.
Level 1: Knowledge and comprehension
Level 2: Application and analysis

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 Level 3: Synthesis and evaluation down.

Very broadly, these intellectual levels relate to the GUIDE TO EXAM STRUCTURE
three cognitive levels at which the Knowledge
module, the Skills module and the Professional level The structure of examinations varies within and
are assessed. between modules and levels.

Each subject area in the detailed study guide The Fundamentals level examinations contain
included in this document is given a 1, 2, or 100% compulsory questions to encourage
3 superscript, denoting intellectual level, marked at candidates to study across the breadth of each
the end of each relevant line. This gives an syllabus.
indication of the intellectual depth at which an area
could be assessed within the examination. However, The Knowledge module is assessed by equivalent
while level 1 broadly equates with the Knowledge two-hour paper based and computer based
module, level 2 equates to the Skills module and examinations.
level 3 to the Professional level, some lower level
skills can continue to be assessed as the student The Skills module examinations F5-F9 are all paper
progresses through each module and level. This based three-hour papers containing a mix of
reflects that at each stage of study there will be a objective and longer type questions. The Corporate
requirement to broaden, as well as deepen and Business Law (F4) paper is a two-hour
capabilities. It is also possible that occasionally computer based objective test examination which is
some higher level capabilities may be assessed at also available as a paper based version from the
lower levels. December 2014 examination sitting.

LEARNING HOURS AND EDUCATION The Professional level papers are all three-hour
RECOGNITION paper based examinations, all containing two
sections. Section A is compulsory, but there will be
The ACCA qualification does not prescribe or some choice offered in Section B.
recommend any particular number of learning hours
for examinations because study and learning For all three hour examination papers, ACCA has
patterns and styles vary greatly between people and introduced 15 minutes reading and planning time.
organisations. This also recognises the wide
diversity of personal, professional and educational This additional time is allowed at the beginning of
circumstances in which ACCA students find each three-hour examination to allow candidates to
themselves. read the questions and to begin planning their
answers before they start writing in their answer
As a member of the International Federation of books. This time should be used to ensure that all
Accountants, ACCA seeks to enhance the education the information and exam requirements are properly
recognition of its qualification on both national and read and understood.
international education frameworks, and with
educational authorities and partners globally. In During reading and planning time candidates may
doing so, ACCA aims to ensure that its qualifications only annotate their question paper. They may not
are recognized and valued by governments, write anything in their answer booklets until told to
regulatory authorities and employers across all do so by the invigilator.
sectors. To this end, ACCA qualifications are
currently recognized on the education frameworks in The Essentials module papers all have a Section A
several countries. Please refer to your national containing a major case study question with all
education framework regulator for further requirements totalling 50 marks relating to this
information. case. Section B gives students a choice of two from
three 25 mark questions.
Each syllabus contains between 23 and 35 main
subject area headings depending on the nature of Section A of both the P4 and P5 Options papers
the subject and how these areas have been broken contain one 50 mark compulsory question, and

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Section B will offer a choice of two from three legislation published in the Official Gazette of the
questions each worth 25 marks each. Republic of Cyprus (“the Gazette”) on or before 30
September. I.e. June and December 2015 papers
Section A of each of the P6 and P7 Options papers will be based on regulation or legislation published
contains 60 compulsory marks from two questions; in the Official Gazette of the Republic of Cyprus
question 1 attracting 35 marks, and question 2 (“the Gazette”) on or before 30 September 2014.
attracting 25 marks. Section B of both these
Options papers will offer a choice of two from three For CZE tax papers, December and June
questions, with each question attracting 20 marks. examinations will be based on legislation passed
before the previous 31 May. I.e. December 2014
All Professional level exams contain four and June 15 papers will be based on legislation in
professional marks. force at 31 May 2014..

The pass mark for all ACCA Qualification For VNM tax papers, June and December
examination papers is 50%. examinations will be based on legislation passed
before the previous 31 December. I.e. June and
December 2015 papers will be based on legislation
GUIDE TO EXAMINATION ASSESSMENT passed by 31 December 2014.

ACCA reserves the right to examine anything Tax papers for the following variants:
contained within the study guide at any examination BWA, CHN, HUN, HKG, IRL, LSO, MWI, MLA,
session. This includes knowledge, techniques, POL, PKN, ROM, RUS, ZAF, ZWE.
principles, theories, and concepts as specified. The June and December examinations will be based
on legislation passed before the previous 30
For the tax papers, ACCA will publish examinable September. I.e. June and December 2015 papers
documents, or tax rates and allowances tables, once will be based on legislation passed by 30
a year to indicate exactly what legislation could September 2014.
potentially be assessed within identified
examination sessions. These should be read in
conjunction with the information below.

For UK tax papers, examinations falling within the

financial year 1 April to 31 March will examine the
Finance Act which was passed in the previous July.
I.e. Exams falling in the period 1 April 2015 to 31
March 2016 will examine the Finance Act 2014.

For SGP tax papers, examinations falling within the

year 1 April to 31 March will be based on
legislation passed before the previous 30
September. I.e. examinations falling in the year 1
April 2015 to 31 March 2016 will be based on
legislation passed by 30 September 2014.

For MYS tax papers, examinations falling within the

year 1 October to 30 September will be based on
legislation passed before the previous 31 March.
I.e. examinations falling in the year 1 October 2014
to 30 September 2015 will be based on legislation
passed before the previous 31 March 2014.

For CYP tax papers, June and December

examinations will be based on regulation or

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 Syllabus MAIN CAPABILITIES

On successful completion of this paper candidates

should be able to:
ATX (P6)
A Explain the operation and scope of the tax
system and the obligations of tax payer and/or
their agents and the implications of non-
compliance
TX (F6) B Explain and compute the income tax liabilities
of individuals and the effect of national
insurance contributions (NIC) on employees,
employers and the self-employed
AIM C Explain and compute the chargeable gains
arising on individuals
To develop knowledge and skills relating to the tax D Explain and compute the inheritance tax
system as applicable to individuals, single liabilities of individuals
companies, and groups of companies. E Explain and compute the corporation tax
liabilities of individual companies and groups
of companies
F Explain and compute the effects of value added
tax on incorporated and unincorporated
businesses

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

The UK tax system and its administration (A)

The UK tax Ta (A)

Income tax and NIC Chargeable gains for Inheritance Corporation tax
liabilities (B) individuals (C) tax (D) liabilities (E)

VAT (F)

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RATIONALE
B. Income tax and NIC liabilities
The syllabus for Paper F6, Taxation, introduces
candidates to the subject of taxation and provides 1. The scope of income tax
the core knowledge of the underlying principles and
major technical areas of taxation as they affect the 2. Income from employment
activities of individuals and businesses.
3. Income from self-employment
Candidates are introduced to the rationale behind –
and the functions of – the tax system. The syllabus 4. Property and investment income
then considers the separate taxes that an
accountant would need to have a detailed 5. The comprehensive computation of taxable
knowledge of, such as income tax from income and income tax liability
self-employment, employment and investments, the
corporation tax liability of individual companies and 6. National insurance contributions for employed
groups of companies, the national insurance and self-employed persons
contribution liabilities of both employed and self
employed persons, the value added tax liability of 7. The use of exemptions and reliefs in deferring
businesses, the chargeable gains arising on and minimising income tax liabilities
disposals of investments by both individuals and
companies, and the inheritance tax liabilities arising C. Chargeable gains for individuals
on chargeable lifetime transfers and on death.
1. The scope of the taxation of capital gains
Having covered the core areas of the basic taxes,
candidates should be able to compute tax liabilities, 2. The basic principles of computing gains and
explain the basis of their calculations, apply tax losses
planning techniques for individuals and companies
and identify the compliance issues for each major 3. Gains and losses on the disposal of movable
tax through a variety of business and personal and immovable property
scenarios and situations.
4. Gains and losses on the disposal of shares and
securities
DETAILED SYLLABUS
5. The computation of capital gains tax
A. The UK tax system and its administration
6. The use of exemptions and reliefs in deferring
1. The overall function and purpose of taxation in and minimising tax liabilities arising on the
a modern economy disposal of capital assets

2. Principal sources of revenue law and practice D. Inheritance tax

3. The systems for self-assessment and the 1. The basic principles of computing transfers of
making of returns value

4. The time limits for the submission of 2. The liabilities arising on chargeable lifetime
information, claims and payment of tax, transfers and on the death of an individual
including payments on account
3. The use of exemptions in deferring and
5. The procedures relating to compliance checks, minimising inheritance tax liabilities
appeals and disputes
4. Payment of inheritance tax
6. Penalties for non-compliance

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 E. Corporation tax liabilities APPROACH TO EXAMINING THE SYLLABUS

1. The scope of corporation tax The syllabus is assessed by a three-hour paper-

based examination.
2. Taxable total profits
The paper will be predominantly computational and
3. Chargeable gains for companies all questions are compulsory.

4. The comprehensive computation of corporation Section A of the exam comprises 15 multiple choice
tax liability questions of 2 marks each.

5. The effect of a group corporate structure for Section B of the exam comprises four 10 mark
questions and two 15 mark questions.
corporation tax purposes
The two 15 mark questions will focus on income tax
6. The use of exemptions and reliefs in deferring
(syllabus area B) and corporation tax (syllabus area
and minimising corporation tax liabilities E).

F. Value added tax The section A questions and the other questions in
section B can cover any areas of the syllabus.
1. The VAT registration requirements

2. The computation of VAT liabilities

3. The effect of special schemes

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Study Guide b) Explain and apply the features of the self-
assessment system as it applies to
companies, including the use of iXBRL.[2]
A THE UK TAX SYSTEM AND ITS
ADMINISTRATION 4. The time limits for the submission of
information, claims and payment of tax,
1. The overall function and purpose of taxation including payments on account
in a modern economy
a) Recognise the time limits that apply to the
a) Describe the purpose (economic, social etc) of filing of returns and the making of claims.[2]
taxation in a modern economy.[1]
b) Recognise the due dates for the payment of tax
b) Explain the difference between direct and under the self-assessment system, and
indirect taxation.[2] compute payments on account and balancing
payments/repayments for individuals.[2]
c) Identify the different types of capital and
revenue tax.[1] c) Explain how large companies are required to
account for corporation tax on a quarterly
2. Principal sources of revenue law and practice basis and compute the quarterly instalment
payments.[2]
a) Describe the overall structure of the UK tax
system.[1] d) List the information and records that taxpayers
need to retain for tax purposes.[1]
b) State the different sources of revenue law.[1]
Excluded topics
c) Describe the organisation HM Revenue &
[1]
Customs (HMRC) and its terms of reference.  The payment of CGT by annual instalments.

d) Explain the difference between tax avoidance 5. The procedures relating to compliance checks,
and tax evasion, and the purposes of the appeals and disputes
General Anti-Abuse Rule (GAAR).[1]
a) Explain the circumstances in which HM
e) Appreciate the interaction of the UK tax system Revenue & Customs can make a compliance
with that of other tax jurisdictions.[2] check into a self-assessment tax return.[2]

f) Appreciate the need for double taxation b) Explain the procedures for dealing with appeals
agreements.[2] and First and Upper Tier Tribunals.[2]

g) Explain the need for an ethical and professional Excluded topics

approach.[2]
 Information powers.
Excluded topics
 Pre-return compliance checks.
 Specific anti-avoidance legislation.
 Detailed procedures on the carrying out and
3. The systems for self-assessment and the completion of a compliance check.
making of returns
6. Penalties for non-compliance
a) Explain and apply the features of the self-
assessment system as it applies to a) Calculate late payment interest and state the
individuals.[2] penalties that can be charged.[2]

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  The exemption where an employer pays for
B INCOME TAX AND NIC LIABILITIES medical treatment.

1. The scope of income tax  Share and share option incentive schemes
for employees.
a) Explain how the residence of an individual is
determined.[1]  Payments on the termination of
employment, and other lump sums received
Excluded topics by employees.

 The split year treatment where a person  Real time reporting late filing penalties.
comes to the UK or leaves the UK.
3. Income from self-employment
 Foreign income, non-residents and double
taxation relief. a) Recognise the basis of assessment for self-
employment income.[2]
 Income from trusts and settlements.
b) Describe and apply the badges of trade.[2]
2. Income from employment
c) Recognise the expenditure that is allowable in
a) Recognise the factors that determine whether calculating the tax-adjusted trading profit.[2]
an engagement is treated as employment or
self-employment.[2] d) Explain and compute the assessable profits
using the cash basis for small businesses.[2]
b) Recognise the basis of assessment for
employment income.[2] e) Recognise the relief which can be obtained for
pre-trading expenditure.[2]
c) Recognise the income assessable.[2]
f) Compute the assessable profits on
d) Recognise the allowable deductions, including commencement and on cessation.[2]
travelling expenses.[2]
g) Recognise the factors that will influence the
e) Discuss the use of the statutory approved choice of accounting date.[2]
mileage allowances.[2]
h) Capital allowances
[1]
f) Explain the PAYE system. i) Define plant and machinery for capital
allowances purposes.[1]
g) Identify P11D employees.[1] ii) Compute writing down allowances, first-
year allowances and the annual investment
h) Explain and compute the amount of benefits allowance.[2]
assessable.[2] iii) Compute capital allowances for motor
cars.[2]
i) Explain the purpose of a dispensation from HM iv) Compute balancing allowances and
Revenue & Customs.[2] balancing charges.[2]
v) Recognise the treatment of short life
Excluded topics assets.[2]
vi) Recognise the treatment of assets included
 The calculation of a car benefit where in the special rate pool.[2]
emission figures are not available.
i) Relief for trading losses
 The exemption for zero emission company i) Understand how trading losses can be
motor cars. carried forward.[2]

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 ii) Understand how trading losses can be  The averaging of profits for authors and
claimed against total income and creative artists.
chargeable gains, and the restriction that
can apply.[2]  Loss relief following the incorporation of a
iii) Explain and compute the relief for trading business.
losses in the early years of a trade.[1]
iv) Explain and compute terminal loss relief.[1]  Loss relief for shares in unquoted trading
v) Recognise the factors that will influence the companies.
choice of loss relief claim.[2]
 The loss relief restriction that applies to the
j) Partnerships and limited liability partnerships partners of a limited liability partnership.
i) Explain and compute how a partnership is
assessed to tax.[2] 4. Property and investment income
ii) Explain and compute the assessable profits
for each partner following a change in the a) Compute property business profits.[2]
profit sharing ratio.[2]
iii) Explain and compute the assessable profits b) Explain the treatment of furnished holiday
for each partner following a change in the lettings.[1]
membership of the partnership.[2]
iv) Describe the alternative loss relief claims c) Understand rent-a-room relief.[1]
that are available to partners.[1]
d) Compute the amount assessable when a
Excluded topics premium is received for the grant of a short
lease.[2]
 Change of accounting date.
e) Understand how relief for a property business
 The 100% allowance for expenditure on loss is given.[2]
renovating business premises in
disadvantaged areas, flats above shops and f) Compute the tax payable on savings and
water technologies. dividends income.[2]

 Capital allowances for industrial buildings, g) Recognise the treatment of new individual
agricultural buildings, patents, scientific savings accounts (NISAs) and other tax exempt
research and know how. investments.[1]

 CO2 emission thresholds for capital Excluded topics

allowances for motor cars prior to 6 April
2013.  The deduction for expenditure by landlords
on energy-saving items.
 Apportionment in order to determine the
amount of annual investment allowance  Premiums for granting subleases.
where a period of account spans 6 April
2014.  The ISA investment rules and limits that
applied prior to 1 July 2014.
 Enterprise zones.
 Junior ISAs.
 Investment income of a partnership.
5. The comprehensive computation of taxable
 The allocation of notional profits and losses income and income tax liability
for a partnership.
a) Prepare a basic income tax computation
 Farmers averaging of profits. involving different types of income.[2]

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 b) Calculate the amount of personal allowance
available generally, and for people born before a) Explain and compute the relief given for
6 April 1948.[2] contributions to personal pension schemes,
and to occupational pension schemes.[2]
c) Compute the amount of income tax payable.[2]
b) Understand how a married couple or a couple
d) Understand the treatment of interest paid for a in a civil partnership can minimise their tax
qualifying purpose.[2] liabilities.[2]

e) Understand the treatment of gift aid donations Excluded topics

and charitable giving.[1]
 The conditions that must be met in order
f) Explain and compute the child benefit tax for a pension scheme to obtain approval
charge.[1] from HM Revenue & Customs.

g) Understand the treatment of property owned  The enterprise investment scheme and the
jointly by a married couple, or by a couple in a seed enterprise investment scheme.
civil partnership.[1]
 Venture capital trusts.
Excluded topics
 Tax reduction scheme for gifts of pre-
 The blind person’s allowance and the eminent objects.
married couple’s allowance.
C CHARGEABLE GAINS FOR INDIVIDUALS
 Tax credits.
1. The scope of the taxation of capital gains
 Maintenance payments.
a) Describe the scope of capital gains tax.[2]
 The income of minor children.
b) Recognise those assets which are exempt.[1]
6. National insurance contributions for employed
and self-employed persons Excluded topics

a) Explain and compute national insurance  Assets situated overseas and double
contributions payable: taxation relief.
i) Class 1 and 1A NIC.[2]
ii) Class 2 and 4 NIC. [2]  Partnership capital gains.

b) Understand the annual employment 2. The basic principles of computing gains and
allowance.[2] losses

Excluded topics a) Compute and explain the treatment of capital

gains.[2]
 The calculation of directors’ national
insurance on a month by month basis. b) Compute and explain the treatment of capital
losses [2]
 Contracted out contributions.
c) Understand the treatment of transfers between
 The offset of trading losses against non- a husband and wife or between a couple in a
trading income. civil partnership.[2]

7. The use of exemptions and reliefs in deferring d) Understand the amount of allowable
and minimising income tax liabilities expenditure for a part disposal.[2]

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 e) Identify the exemption available for gilt-edged
e) Recognise the treatment where an asset is securities and qualifying corporate bonds.[1]
damaged, lost or destroyed, and the
implications of receiving insurance proceeds Excluded topics
and reinvesting such proceeds.[2]
 The exemption for employee shareholders.
Excluded topics
 The small part disposal rules applicable to
 Small part disposals of land, and small rights issues, takeovers and reorganisations.
capital sums received where an asset is
damaged.  Gilt-edged securities and qualifying
corporate bonds other than the fact that
 Losses in the year of death. they are exempt.

 Relief for losses incurred on loans made to 5. The computation of capital gains tax
traders.
a) Compute the amount of capital gains tax
 Negligible value claims. payable.[2]

3. Gains and losses on the disposal of movable b) Explain and apply entrepreneurs’ relief. [2]
and immovable property
Excluded topics
a) Identify when chattels and wasting assets are
exempt.[1]  Entrepreneurs’ relief for associated
disposals.
b) Compute the chargeable gain when a chattel or
a wasting asset is disposed of.[2] 6. The use of exemptions and reliefs in deferring
and minimising tax liabilities arising on the
c) Calculate the chargeable gain when a principal disposal of capital assets
private residence is disposed of.[2]
a) Explain and apply capital gains tax reliefs:
Excluded topics (i) rollover relief.[2]
(ii) holdover relief for the gift of business
 The disposal of leases and the creation of assets.[2]
sub-leases.
Excluded topics
4. Gains and losses on the disposal of shares and
securities  Incorporation relief.

a) Recognise the value of quoted shares where  Reinvestment relief.

they are disposed of by way of a gift.[2]
D INHERITANCE TAX
b) Explain and apply the identification rules as
they apply to individuals including the same 1. The basic principles of computing transfers of
day and 30 day matching rules.[2] value

c) Explain and apply the pooling provisions.[2] a) Identify the persons chargeable.[2]

d) Explain and apply the treatment of bonus b) Understand and apply the meaning of transfer
issues, rights issues, takeovers and of value, chargeable transfer and potentially
reorganisations.[2] exempt transfer.[2]

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 c) Demonstrate the diminution in value
principle.[2]  Double tax relief.

d) Demonstrate the seven year accumulation  Variation of wills and disclaimers of

principle taking into account changes in the legacies.
level of the nil rate band.[2]
 Grossing up on death.
Excluded topics
 Post mortem reliefs.
 Pre 18 March 1986 lifetime transfers.
 Double charges legislation.
 Transfers of value by close companies.
 The reduced rate of inheritance tax payable
 Domicile, deemed domicile, and non-UK on death when a proportion of a person’s
domiciled individuals. estate is bequeathed to charity.

 Trusts. 3. The use of exemptions in deferring and

minimising inheritance tax liabilities
 Excluded property.
a) Understand and apply the following
 Related property. exemptions:
i) small gifts exemption[2]
 The tax implications of the location of ii) annual exemption[2]
assets. iii) normal expenditure out of income[2]
iv) gifts in consideration of marriage[2]
 Gifts with reservation of benefit. v) gifts between spouses.[2]

 Associated operations. Excluded topics

2. The liabilities arising on chargeable lifetime  Gifts to charities.

transfers and on the death of an individual
 Gifts to political parties.
a) Understand the tax implications of lifetime
transfers and compute the relevant liabilities.[2]  Gifts for national purposes.

b) Understand and compute the tax liability on a 4. Payment of inheritance tax

death estate.[2]
a) Identify who is responsible for the payment of
c) Understand and apply the transfer of any inheritance tax and the due date for payment
unused nil rate band between spouses.[2] of inheritance tax.[2]

Excluded topics Excluded topics

 Specific rules for the valuation of assets  Administration of inheritance tax other than
(values will be provided). listed above.

 Business property relief.  The instalment option for the payment of

tax.
 Agricultural relief.
 Interest and penalties.
 Relief for the fall in value of lifetime gifts.

 Quick succession relief.

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E CORPORATION TAX LIABILITIES h) Recognise and apply the treatment of interest
paid and received under the loan relationship
1. The scope of corporation tax rules.[1]

a) Define the terms ‘period of account’, i) Recognise and apply the treatment of
‘accounting period’, and ‘financial year’.[1] qualifying charitable donations.[2]

b) Recognise when an accounting period starts j) Compute taxable total profits.[2]

and when an accounting period finishes.[1]
Excluded topics
c) Explain how the residence of a company is
determined.[2]  Research and development expenditure.

Excluded topics  Non-trading deficits on loan relationships.

 Investment companies.  Relief for intangible assets.

 Close companies.  Patent box.

 Companies in receivership or liquidation. 3 Chargeable gains for companies

 Reorganisations. a) Compute and explain the treatment of

chargeable gains.[2]
 The purchase by a company of its own
shares. b) Explain and compute the indexation allowance
available.[2]
 Personal service companies.
c) Explain and compute the treatment of capital
2. Taxable total profits losses.[1]

a) Recognise the expenditure that is allowable in d) Understand the treatment of disposals of

calculating the tax-adjusted trading profit.[2] shares by companies and apply the
identification rules including the same day and
b) Recognise the relief which can be obtained for nine day matching rules.[2]
pre-trading expenditure.[1]
e) Explain and apply the pooling provisions.[2]
c) Compute capital allowances (as for income
tax).[2] f) Explain and apply the treatment of bonus
issues, rights issues, takeovers and
d) Compute property business profits and reorganisations.[2]
understand how relief for a property business
loss is given.[2] g) Explain and apply rollover relief.[2]

e) Understand how trading losses can be carried Excluded topics

forward.[2]
 A detailed question on the pooling
f) Understand how trading losses can be claimed provisions as they apply to limited
against income of the current or previous companies.
accounting periods.[2]
 Substantial shareholdings.
g) Recognise the factors that will influence the
choice of loss relief claim.[2]

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 4. The comprehensive computation of
corporation tax liability
F VALUE ADDED TAX
a) Compute the corporation tax liability and apply
marginal relief.[2] 1. The VAT registration requirements

b) Recognise the implications of receiving franked a) Recognise the circumstances in which a person
investment income.[2] must register or deregister for VAT
(compulsory) and when a person may register
5. The effect of a group corporate structure for or deregister for VAT (voluntary).[2]
corporation tax purposes
b) Recognise the circumstances in which pre-
a) Define an associated company and recognise registration input VAT can be recovered.[2]
the effect of having associated companies for
corporation tax purposes.[2] c) Explain the conditions that must be met for
two or more companies to be treated as a
b) Define a 75% group, and recognise the reliefs group for VAT purposes, and the consequences
that are available to members of such a of being so treated.[1]
group.[2]
2. The computation of VAT liabilities
c) Define a 75% chargeable gains group, and
recognise the reliefs that are available to a) Understand how VAT is accounted for and
members of such a group.[2] administered.[2]

Excluded topics b) Recognise the tax point when goods or services

are supplied.[2]
 Relief for trading losses incurred by an
overseas subsidiary. c) List the information that must be given on a
VAT invoice.[1]
 Consortia.
d) Explain and apply the principles regarding the
 Pre-entry gains and losses. valuation of supplies.[2]

 The anti-avoidance provisions where e) Recognise the principal zero rated and exempt
arrangements exist for a company to leave supplies [1]
a group.
f) Recognise the circumstances in which input
 The tax charge that applies where a VAT is non-deductible.[2]
company leaves a group within six years of
receiving an asset by way of a no gain/no g) Recognise the relief that is available for
loss transfer. impairment losses on trade debts.[2]

 Overseas aspects of corporation tax. h) Understand when the default

surcharge, a penalty for an incorrect VAT
 Transfer pricing return, and default interest will be applied.[1]

6. The use of exemptions and reliefs in deferring i) Understand the treatment of imports, exports
and minimising corporation tax liabilities: and trade within the European Union.[2]

The use of such exemptions and reliefs is Excluded topics

implicit within all of the above sections 1 to 5
of part E of the syllabus, concerning  VAT periods where there is a change of VAT
corporation tax. rate.

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  Partial exemption.
 In respect of property and land: leases, do-
it-yourself builders, and a landlord's option
to tax.

 Penalties apart from those listed in the

study guide.

3. The effect of special schemes

a) Understand the operation of, and when it will

be advantageous to use, the VAT special
schemes:
i) cash accounting scheme.[2]
ii) annual accounting scheme.[2]
iii) flat rate scheme. [2]

Excluded topics

 The second-hand goods scheme.

 The capital goods scheme.

 The special schemes for retailers.

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© ACCA 2015 All rights reserved.
 SUMMARY OF CHANGES TO F6 (UK)

ACCA periodically reviews it qualification syllabuses so

that they fully meet the needs of stakeholders such as
employers, students, regulatory and advisory bodies and
learning providers.

Some of the syllabus areas have been reordered

as shown in Table 1 below:

Table 1 – Reordering within F6 (UK)

Section and subject area Syllabus content

Reordering of syllabus areas The syllabus areas have been reordered so that
syllabus area A covers the UK tax system and its
administration, B covers income tax and NIC liabilities,
C covers chargeable gains for individuals, D covers
inheritance tax, E covers corporation tax (including
chargeable gains) and F covers VAT.
Enlarged syllabus area A Syllabus area H (the obligations of the taxpayer and/or
their agents) has been combined with syllabus area A
to create an enlarged syllabus area A (the UK tax
system and its administration).
National insurance National insurance has been moved and is now
included in syllabus area B (Income tax and NIC
liabilities)
E3 Chargeable gains for companies Chargeable gains have been split between individuals
(syllabus area C) and companies (syllabus area E3
Corporation tax)

The main areas that have been added to the syllabus

are shown in Table 2 below:

Table 2 - Additions to F6 (UK)

Section and subject area Syllabus content

A2c) Principal sources of revenue law and practice New part (c) on the organisation HMRC and its terms
of reference added
B2 Income from employment – Excluded topics The exemption where an employer pays for medical
treatment.
Real time reporting late filing penalties.
B3 Income from self-employment – Excluded topics The loss relief restriction that applies to the partners of
a limited liability partnership.
B3i)v) Income from self-employment New part v) on the factors that will influence the
choice of loss relief claim added for clarity
B4 Property and investment income – Excluded topics The ISA investment rules and limits that applied prior
to 1 July 2014.
B6b) National insurance contributions for employed New part (b) on the annual employment allowance.
and self-employed persons
E5 The effect of a group corporate structure for Relief for trading losses incurred by an overseas
corporation tax purposes – Excluded topics subsidiary

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The main areas that have been deleted from the syllabus
are shown in Table 3 below:

Table 3 – Deletions from F6 (UK)

Section and subject area Syllabus content

B3 Income from self employment Part B3j) (v) on the loss relief restriction that applies to
the partners of a limited liability partnership deleted.

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© ACCA 2015 All rights reserved.