TX-UK Syllabus - J22-M23 Final

Taxation – United Kingdom (TX-UK)
Taxation –
United Kingdom
(TX-UK)
Syllabus and study guide
June 2022 – March 2023
Designed to help with planning study and to provide

detailed information on what could be assessed in
any examination session
1 © ACCA 2022-2023 All rights reserved.

Contents
1. Intellectual levels .....................................3
2. Learning hours and education recognition
...................................................................3
3. The structure of ACCA qualification ........4
4. Guide to ACCA examination structure and
delivery mode .............................................5
5. Guide to ACCA examination assessment 7
6. Relational diagram linking Taxation –
United Kingdom (TX-UK) with other exams .8
7. Approach to examining the syllabus ........8
8. Introduction to the syllabus......................9
9. Main capabilities ...................................10
10. The syllabus ........................................11
11. Detailed study guide............................13
12. Summary of changes to Taxation –
United Kingdom (TX-UK) ..........................24

1. Intellectual levels 2. Learning hours and

education recognition
The syllabus is designed to progressively
broaden and deepen the knowledge, skills
The ACCA qualification does not prescribe
and professional values demonstrated by
or recommend any particular number of
the student on their way through the
learning hours for examinations because
qualification.
study and learning patterns and styles vary
greatly between people and organisations.
The specific capabilities within the detailed
This also recognises the wide diversity of
syllabuses and study guides are assessed at
personal, professional and educational
one of three intellectual or cognitive levels:
circumstances in which ACCA students find
themselves.
Level 1: Knowledge and
comprehension
As a member of the International Federation
Level 2: Application and analysis
of Accountants, ACCA seeks to enhance the
Level 3: Synthesis and evaluation
education recognition of its qualification on
both national and international education
Very broadly, these intellectual levels relate
frameworks, and with educational authorities
to the three cognitive levels at which the
and partners globally. In doing so, ACCA
Applied Knowledge, the Applied Skills and
aims to ensure that its qualification is
the Strategic Professional exams are
recognised and valued by governments,
assessed.
regulatory authorities and employers across
all sectors. To this end, ACCA qualification
Each subject area in the detailed study
is currently recognised on the education
guide included in this document is given a 1,
frameworks in several countries. Please
2, or 3 superscript, denoting intellectual
refer to your national education framework
level, marked at the end of each relevant
regulator for further information.
learning outcome. This gives an indication of
the intellectual depth at which an area could
Each syllabus is organised into main subject
be assessed within the examination.
area headings which are further broken
However, while level 1 broadly equates with
down to provide greater detail on each area.
Applied Knowledge, level 2 equates to
Applied Skills and level 3 to Strategic
Professional, some lower level skills can
continue to be assessed as the student
progresses through each level. This reflects
that at each stage of study there will be a
requirement to broaden, as well as deepen
capabilities. It is also possible that
occasionally some higher level capabilities
may be assessed at lower levels.

3. The structure of ACCA qualification

4. Guide to ACCA Strategic Professional

Strategic Business Leader is ACCA’s case
examination structure and study examination at Strategic Professional
delivery mode and is examined as a closed book exam of
four hours, including reading, planning and
reflection time which can be used flexibly
The pass mark for all ACCA Qualification within the examination. There is no pre-seen
examinations is 50%. information and all exam related material,
including case information and exhibits are
The structure and delivery mode of available within the examination. Strategic
examinations varies. Business Leader is an exam based on one
main business scenario which involves
Applied Knowledge candidates completing several tasks within
The Applied Knowledge examinations which additional material may be introduced.
contain 100% compulsory questions to All questions are compulsory and each
encourage candidates to study across the examination will contain a total of 80
breadth of each syllabus. These are technical marks and 20 Professional Skills
assessed by a two-hour computer based marks.
examination.
The other Strategic Professional exams are
Applied Skills all of three hours and 15 minutes duration.
The Corporate and Business Law exam is a All contain two sections and all questions
two-hour computer-based objective test are compulsory. These exams all contain
examination for English and Global. four professional marks.
For the format and structure of the From March 2020, Strategic Professional
Corporate and Business Law or Taxation exams became available by computer based
variant exams, refer to the ‘Approach to examination. More detail regarding what is
examining the syllabus’ section of the available in your market will be on the ACCA
relevant syllabus and study guide. global website.
The other Applied Skills examinations With Applied Knowledge and Applied Skills
(PM, TX-UK, FR, AA, and FM) contain a mix exams now assessed by computer based
of objective and longer type questions with a exam, ACCA is committed to continuing on
duration of three hours for 100 marks. These its journey to assess all exams within the
are assessed by a three-hour computer- ACCA Qualification using this delivery mode.
based exam. Prior to the start of each exam
there will be time allocated for students to be The question types used at Strategic
informed of the exam instructions. Professional require students to effectively
mimic what they would do in the workplace.
The longer (constructed response) question These exams offer ACCA the opportunity to
types used in the Applied Skills exams focus on the application of knowledge to
(excluding Corporate and Business Law) scenarios, using a range of tools including
require students to effectively mimic what word processor, spreadsheets and
they do in the workplace. Students will need presentation slides - not only enabling
to use a range of digital skills and students to demonstrate their technical and
demonstrate their ability to use spread professional skills but also their use of the
sheets and word processing tools in technology available to today’s accountants.
producing their answers, just as they would
use these tools in the workplace. These
assessment methods allow ACCA to focus
on testing students’ technical and application
skills, rather than, for example, their ability to
perform simple calculations.

Time management
ACCA encourages students to take time to
read questions carefully and to plan answers
but once the exam time has started, there
are no additional restrictions as to when
candidates may start producing their
answer.
Time should be taken to ensure that all the

information and exam requirements are
properly read and understood.

5. Guide to ACCA
examination assessment
For UK tax exams, examinations falling
within the period 1 June to 31 March will
ACCA reserves the right to examine any generally examine the Finance Act which
learning outcome contained within the study was passed in the previous year. Therefore,
guide. This includes knowledge, techniques, exams falling in the period 1 June 2022 to
principles, theories, and concepts as 31 March 2023 will examine the Finance Act
specified. For the financial accounting, audit 2021 and any examinable legislation which
and assurance, law and tax exams except is passed outside of the Finance Act before
where indicated otherwise, ACCA will 31 May 2021.
publish examinable documents once a year
to indicate exactly what regulations and For additional guidance on the examinability
of specific tax rules and the depth in which
legislation could potentially be assessed
they are likely to be examined, reference
within identified examination sessions.
should be made to the relevant Finance Act
article written by the examining team and
For most examinations (not tax), regulations
published on the ACCA website.
issued or legislation passed on or before 31
August annually, will be examinable from 1 None of the current or impending devolved
September of the following year to 31 taxes for Scotland, Wales, and Northern
August of the year after that. Please refer to Ireland is, or will be, examinable.
the examinable documents for the exam
(where relevant) for further information.
Regulations issued or legislation passed in

accordance with the above dates will not be
examinable if the effective date is in the
future, unless explicitly stated otherwise in
this syllabus and study guide or examinable
documents. The term issued or passed
relates to when regulation or legislation has
been formally approved.
The term effective relates to when regulation

or legislation must be applied to an entity’s
transactions and business practices.
The study guide offers more detailed

guidance on the depth and level at which the
examinable documents will be examined.
The study guide should therefore be read in
conjunction with the examinable documents
list.

6. Relational diagram linking Taxation – United Kingdom

(TX-UK) with other exams
This diagram shows links between this exam and other exams preceding or following it.
Some exams are directly underpinned by other exams such as Advanced Taxation – United
Kingdom (ATX-UK) by Taxation – United Kingdom (TX-UK).
This diagram indicates where students are expected to have underpinning knowledge and
where it would be useful to review previous learning before undertaking study.
7. Approach to examining the syllabus
The syllabus is assessed by a three-hour computer-based examination.
All questions are compulsory. The exam will contain both computational and discursive
elements.
Some questions will adopt a scenario/case study approach.
Tax rates, allowances and information on certain reliefs will be given in the exam.
Section A
Section A comprises 15 objective test questions of 2 marks each
Section B
Section B comprises three questions each containing five objective test questions.
Section C
Section C comprises one 10 mark and two 15 mark constructed response questions.
The two 15 mark questions will focus on income tax (syllabus area B) and
corporation tax (syllabus area E).
All other questions can cover any areas of the syllabus.
Total 100 marks

8. Introduction to the syllabus
The aim of the syllabus is to develop knowledge and skills relating to the tax system as
applicable to individuals, single companies, and groups of companies.
The syllabus for Taxation - United Kingdom (TX-UK) 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.
Section G of the syllabus contains outcomes relating to the demonstration of appropriate

digital and employability skills in preparing for and taking the examination. This includes
being able to interact with different question item types, manage information presented in
digital format and being able to use the relevant functionality and technology to prepare and
present response options in a professional manner. These skills are specifically developed
by practicing and preparing for the exam, using the learning support content for computer-
based exams available via the practice platform and the ACCA website and will need to be
demonstrated during the live exam.

9. Main capabilities
On successful completion of this exam, candidates should be able to:
A Explain the operation and scope of the tax system and the obligations of tax payers
and/or their agents and the implications of non-compliance
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
C Explain and compute the chargeable gains arising on individuals
D Explain and compute the inheritance tax liabilities of individuals
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
G Demonstrate employability and technology skills
Relational diagram of the main capabilities
This diagram illustrates the flows and links between the main capabilities (sections) of the
syllabus and should be used as an aid to planning teaching and learning in a structured way.

10. The syllabus 4. Gains and losses on the disposal of

shares and securities
A The UK tax system and its 5. The computation of capital gains tax
administration
6. The use of exemptions and reliefs in
1. The overall function and purpose of deferring and minimising tax liabilities
taxation in a modern economy arising on the disposal of capital assets
2. Principal sources of revenue law and D Inheritance tax

practice
1. The basic principles of computing
3. The systems for self-assessment and transfers of value
the making of returns
2. The liabilities arising on chargeable
4. The time limits for the submission of lifetime transfers and on the death of an
information, claims and payment of tax, individual
including payments on account
3. The use of exemptions in deferring and
5. The procedures relating to compliance minimising inheritance tax liabilities
checks, appeals and disputes
4. Payment of inheritance tax
6. Penalties for non-compliance
E Corporation tax liabilities
B Income tax and NIC liabilities
1. The scope of corporation tax
1. The scope of income tax
2. Taxable total profits
2. Income from employment
3. Chargeable gains for companies
3. Income from self-employment
4. The comprehensive computation of
4. Property and investment income corporation tax liability
5. The comprehensive computation of 5. The effect of a group corporate structure

taxable income and income tax liability for corporation tax purposes
6. National insurance contributions for 6. The use of exemptions and reliefs in

employed and self-employed persons deferring and minimising corporation tax
liabilities
deferring and minimising income tax F Value added tax (VAT)
liabilities
1. The VAT registration requirements
C Chargeable gains for individuals
2. The computation of VAT liabilities
1. The scope of the taxation of capital gains
3. The effect of special schemes
2. The basic principles of computing gains
and losses
3. Gains and losses on the disposal of

movable and immovable property

G Employability and technology skills
1. Use computer technology to efficiently

access and manipulate relevant
information.
2. Work on relevant response options,

using available functions and
technology, as would be required in the
workplace.
3. Navigate windows and computer

screens to create and amend responses
to exam requirements, using the
appropriate tools.
4. Present data and information effectively
using the appropriate tools.

11. Detailed study guide 3. The systems for self-assessment and

the making of returns
A The UK Tax system and its a) Explain and apply the features of the
self-assessment system as it applies to
administration individuals.[2]
1. The overall function and purpose of b) Explain and apply the features of the
taxation in a modern economy self-assessment system as it applies to
companies, including the use of iXBRL.[2]
a) Describe the purpose (economic, social
etc) of taxation in a modern economy.[1] 4. The time limits for the submission of
information, claims and payment of
b) Explain the difference between direct tax, including payments on account
and indirect taxation.[2]
a) Recognise the time limits that apply to
c) Identify the different types of capital and the filing of returns and the making of
revenue tax.[1] claims.[2]
2. Principal sources of revenue law and b) Recognise the due dates for the
practice payment of tax under the self-
assessment system, and compute
a) Describe the overall structure of the UK payments on account and balancing
tax system.[1] payments/repayments for individuals.[2]
b) State the different sources of revenue c) Explain how large companies are
law.[1] required to account for corporation tax
on a quarterly basis and compute the
c) Describe the organisation HM Revenue quarterly instalment payments.[2]
& Customs (HMRC) and its terms of
reference.[1] d) List the information and records that
taxpayers need to retain for tax
d) Explain the difference between tax purposes.[1]
avoidance and tax evasion, and the
purposes of the General Anti-Abuse Excluded topics
Rule (GAAR).[1]
• The payment of capital gains tax by
e) Appreciate the interaction of the UK tax annual instalments.
system with that of other tax
jurisdictions.[2]
• The calculation of payments on
account for disposals of residential
f) Appreciate the need for double taxation
property where there is more than
agreements.[2]
one residential property disposal
during a tax year.
g) Explain the need for an ethical and
professional approach.[2]
• Simple assessments.
Excluded topics
• Quarterly accounting by companies
for income tax.
• Specific anti-avoidance legislation.
• Quarterly instalments for very large
companies.

5. The procedures relating to c) Recognise the income assessable.[2]

compliance checks, appeals and
disputes d) Recognise the allowable deductions,
including travelling expenses.[2]
a) Explain the circumstances in which HM
Revenue & Customs can make a e) Discuss the use of the statutory
compliance check into a self-assessment approved mileage allowances.[2]
tax return.[2]
f) Explain the PAYE system, how benefits
b) Explain the procedures for dealing with can be payrolled, and the purpose of
appeals and First and Upper Tier form P11D.[1]
Tribunals.[2]
g) Explain and compute the amount of
Excluded topics benefits assessable.[2]
• Information powers. h) Recognise the circumstances in which

real time reporting late filing penalties
• Pre-return compliance checks. will be imposed on an employer and the
amount of penalty which is charged.[2]
• Detailed procedures on the carrying
out and completion of a compliance Excluded topics
check.
• The calculation of a car benefit
6. Penalties for non-compliance where emission figures are not
available.
a) Calculate late payment interest and state
the penalties that can be charged.[2] • The calculation of a car benefit
where the car was registered before
B Income tax and NIC liabilities 6 April 2020.
1. The scope of income tax • The calculation of a car benefit for

cars which have emissions below
a) Explain how the residence of an 50g/km and are neither electric nor
individual is determined.[1] hybrid.
Excluded topics • Tax free childcare scheme.
• The split year treatment where a • Share and share option incentive
person comes to the UK or leaves schemes for employees.
the UK.
• Payments on the termination of
• Foreign income, non-residents and employment, and other lump sums
double taxation relief. received by employees.
• Income from trusts and settlements. • Optional remuneration arrangements
2. Income from employment 3. Income from self-employment
a) Recognise the factors that determine a) Recognise the basis of assessment for
whether an engagement is treated as self-employment income.[2]
employment or self-employment.[2]
b) Describe and apply the badges of
b) Recognise the basis of assessment for trade.[2]
employment income.[2]

c) Recognise the expenditure that is ii) Explain and compute the

allowable in calculating the tax-adjusted assessable profits for each partner
trading profit.[2] following a change in the profit
sharing ratio.[2]
d) Explain and compute the assessable iii) Explain and compute the
profits using the cash basis for small assessable profits for each partner
businesses.[2] following a change in the
membership of the partnership.[2]
e) Recognise the relief which can be iv) Describe the alternative loss relief
obtained for pre-trading expenditure.[2] claims that are available to
partners.[1]
f) Compute the assessable profits on
commencement and on cessation.[2] Excluded topics
g) Recognise the factors that will influence • Change of accounting date.

the choice of accounting date.[2]
• Capital allowances for patents and
h) Capital allowances research and development
i) Define plant and machinery for expenditure.
capital allowances purposes.[1]
ii) Compute writing down • Apportionment in order to determine
allowances, first-year allowances the amount of annual investment
and the annual investment allowance where a period of account
allowance.[2] spans 1 January 2022.
iii) Compute capital allowances for
motor cars.[2] • Knowledge of the annual investment
iv) Compute balancing allowances allowance limit of £200,000
and balancing charges.[2] applicable from 1 January 2022.
v)Compute structures and buildings
allowances.[2] • Enterprise zones.
vi) Recognise the treatment of short
life assets.[2] • Investment income of a partnership.
vii) Recognise the treatment of assets
included in the special rate pool.[2] • The allocation of notional profits and
losses for a partnership.
i) Relief for trading losses
i) Understand how trading losses
• Farmers averaging of profits.
can be carried forward.[2]
ii) Understand how trading losses
• The averaging of profits for authors
can be claimed against total income
and creative artists.
and chargeable gains, and the
restriction that can apply.[2]
iii) Explain and compute the relief • Loss relief following the incorporation
for trading losses in the early years of a business.
of a trade.[1] • Loss relief for shares in unquoted
iv) Explain and compute terminal trading companies.
loss relief.[1]
v) Recognise the factors that will • The loss relief restriction that applies
influence the choice of loss relief to the partners of a limited liability
claim.[2] partnership.
• Trading allowance of £1,000.
j) Partnerships and limited liability
partnerships
i) Explain and compute how a
partnership is assessed to tax.[2]

• Non-deductible capital expenditure • The detailed rules for establishing

under the cash basis other than whether higher or additional rate tax
motor cars, land and buildings. is applicable for the purposes of the
savings income nil rate band.
• The temporary extension of the carry
back of trading losses incurred in the • Property allowance of £1,000.
tax years 2020/21 and 2021/22 from
one year to three years. • Non-deductible capital expenditure
under the cash basis other than
4. Property and investment income motor cars, land and buildings.
a) Compute property business profits.[2] • The cap in respect of the property

income finance costs tax reducer.
b) Explain the treatment of furnished
holiday lettings.[1] • Carry forward of the property income
finance costs tax reducer.
c) Understand rent-a-room relief.[1]
5. The comprehensive computation of
d) Compute the amount assessable when a taxable income and income tax
premium is received for the grant of a liability
short lease.[2]
a) Prepare a basic income tax computation
e) Understand and apply the restriction on involving different types of income.[2]
property income finance costs.[2]
b) Calculate the amount of personal
f) Understand how relief for a property allowance available.[2]
business loss is given.[2]
c) Understand the impact of the
g) Compute the tax payable on savings and transferable amount of personal
dividends income.[2] allowance for spouses and civil
partners.[2]
h) Recognise the treatment of individual
savings accounts (ISAs) and other tax d) Compute the amount of income tax
exempt investments.[1] payable.[2]
i) Understand how the accrued income e) Understand the treatment of interest paid
scheme applies to UK Government for a qualifying purpose.[2]
securities (gilts).[1]
f) Understand the treatment of gift aid
Excluded topics donations and charitable giving.[1]
• Premiums for granting subleases. g) Explain and compute the child benefit
tax charge.[1]
• Junior ISAs.
h) Understand the treatment of property
• The additional ISA allowance for a owned jointly by a married couple, or by
surviving spouse or registered civil a couple in a civil partnership.[1]
partner.
Excluded topics
• Help-to-buy, innovative finance and
lifetime ISAs. • Consideration of the most beneficial
allocation of the personal allowance
• Savings income paid net of tax. to different categories of income.

• The blind person’s allowance and the • The conditions that must be met in
married couple’s allowance. order for a pension scheme to obtain
• Tax credits. approval from HM Revenue &
Customs.
• Maintenance payments.
• The anti-avoidance annual allowance
• The income of minor children. limit of £4,000 for pension
contributions (the tapering of the
6. National insurance contributions for annual allowance down to a
employed and self-employed persons minimum of £4,000 is examinable).
a) Explain and compute national insurance • The threshold level of income below
contributions payable: which tapering of the annual
i) Class 1 and 1A NIC.[2] allowance does not apply.
ii) Class 2 and 4 NIC. [2]
• The enterprise investment scheme
b) Understand the annual employment and the seed enterprise investment
allowance.[2] scheme.
Excluded topics • Venture capital trusts.
• The calculation of directors’ national • Tax reduction scheme for gifts of pre-
insurance on a month by month eminent objects.
basis.
C Chargeable gains for
• The offset of trading losses against
non-trading income.
individuals
1. The scope of the taxation of capital
• The exemption from employer’s class
gains
1 NIC in respect of employees aged
under 21 and apprentices aged
a) Describe the scope of capital gains tax.[2]
under 25.
b) Recognise those assets which are
• Group aspects of the annual exempt.[1]
employment allowance.
Excluded topics
deferring and minimising income tax
• Assets situated overseas and double
liabilities
taxation relief.
a) Explain and compute the relief given for
• Partnership capital gains.
contributions to personal pension
schemes, and to occupational pension
2. The basic principles of computing
schemes.[2]
gains and losses
b) Understand how a married couple or a
a) Compute and explain the treatment of
couple in a civil partnership can minimise
capital gains.[2]
their tax liabilities.[2]
b) Compute and explain the treatment of
c) Basic income tax planning.[2]
capital losses. [2]
Excluded topics
c) Understand the treatment of transfers
between a married couple or between a
couple in a civil partnership.[2]

b) Explain and apply the identification rules

d) Understand the amount of allowable as they apply to individuals including the
expenditure for a part disposal.[2] same day and 30 day matching rules.[2]
e) Recognise the treatment where an asset c) Explain and apply the pooling
is damaged, lost or destroyed, and the provisions.[2]
implications of receiving insurance
proceeds and reinvesting such d) Explain and apply the treatment of bonus
proceeds.[2] issues, rights issues, takeovers and
reorganisations.[2]
Excluded topics
e) Identify the exemption available for gilt-
• Assets held at 31 March 1982. edged securities and qualifying
corporate bonds.[1]
• Small part disposals of land, and
small capital sums received where Excluded topics
an asset is damaged.
• The small part disposal rules
• Losses in the year of death. applicable to rights issues, takeovers
and reorganisations.
• Relief for losses incurred on loans
made to traders. • Gilt-edged securities and qualifying
corporate bonds other than the fact
• Negligible value claims. that they are exempt.
3. Gains and losses on the disposal of 5. The computation of capital gains tax
movable and immovable property
a) Compute the amount of capital gains tax
a) Identify when chattels and wasting payable.[2]
assets are exempt.[1]
b) Explain and apply business asset
b) Compute the chargeable gain when a disposal relief. [2]
chattel or a wasting asset is disposed
of.[2] c) Explain and apply investors’ relief. [2]
c) Calculate the chargeable gain when a Excluded topics

private residence is disposed of.[2]
• Business asset disposal relief for
Excluded topics associated disposals.
• The disposal of leases and the • Mixed use property being property
creation of sub-leases. with both commercial and residential
parts.
• The two year pre-occupation period
exemption for private residence relief • Expanded definition of the 5%
(PRR) shareholding condition for business
asset disposal relief.
4. Gains and losses on the disposal of
shares and securities • Availability of business asset
disposal relief where shareholding is
a) Recognise the value of quoted shares diluted below the 5% qualifying
where they are disposed of by way of a threshold.
gift.[2]

• Business asset disposal relief lifetime • Excluded property.

limit prior to 6 April 2020.
• Related property.
6. The use of exemptions and reliefs in • The tax implications of the location of
deferring and minimising tax assets.
liabilities arising on the disposal of
capital assets • Gifts with reservation of benefit.
a) Explain and apply capital gains tax • Associated operations.

reliefs:
(i) rollover relief.[2] 2. The liabilities arising on chargeable
(ii) gift holdover relief for the gift of lifetime transfers and on the death of
business assets.[2] an individual
b) Basic capital gains tax planning.[2] a) Understand the tax implications of

lifetime transfers and compute the
Excluded topics relevant liabilities.[2]
• Incorporation relief. b) Understand and compute the tax liability

on a death estate.[2]
• Reinvestment relief.
c) Understand and apply the transfer of any
D Inheritance tax unused nil rate band between spouses.[2]
1. The basic principles of computing d) Understand and apply the residence nil
transfers of value rate band available when a residential
property is inherited by direct
a) Identify the persons chargeable.[2] descendants.[2]
b) Understand and apply the meaning of Excluded topics

transfer of value, chargeable transfer
and potentially exempt transfer.[2] • Specific rules for the valuation of
assets (values will be provided).
c) Demonstrate the diminution in value
principle.[2] • Business property relief.
d) Demonstrate the seven year • Agricultural property relief.

accumulation principle taking into
account changes in the level of the nil • Relief for the fall in value of lifetime
rate band.[2] gifts.
Excluded topics • Quick succession relief.
• Pre 18 March 1986 lifetime transfers. • Double tax relief.
• Transfers of value by close • Post-death variation of wills and

companies. disclaimers of legacies.
• Domicile, deemed domicile, and non- • Grossing up on death.

UK domiciled individuals.
• Post mortem reliefs.
• Trusts.
• Double charges legislation.

• Endowment mortgages.
• The reduced rate of inheritance tax Excluded topics

payable on death when a proportion
of a person’s estate is bequeathed to • Administration of inheritance tax
charity. other than listed above.
• The tapered withdrawal of the • The instalment option for the

residence nil rate band where the net payment of tax.
value of the estate exceeds £2
million. • Interest and penalties.
• The protection of the residence nil E Corporation tax liabilities

rate band where an individual
downsizes to a less valuable 1. The scope of corporation tax
property or where a property is
disposed of. a) Define the terms ‘period of account’,
‘accounting period’, and ‘financial year’.[1]
• Nominating which property should
qualify for the residence nil rate band b) Recognise when an accounting period
where there is more than one starts and when an accounting period
residence. finishes.[1]
3. The use of exemptions in deferring c) Explain how the residence of a company

and minimising inheritance tax is determined.[2]
liabilities
Excluded topics
a) Understand and apply the following
exemptions: • Investment companies.
i) small gifts exemption.[2]
ii) annual exemption.[2] • Close companies.
iii) normal expenditure out of
income.[2] • Companies in receivership or
iv) gifts in consideration of liquidation.
marriage.[2]
v) gifts between spouses.[2] • Reorganisations.
b) Basic inheritance tax planning [2]
• The purchase by a company of its
own shares.
Excluded topics
• Personal service companies.
• Gifts to charities.
• Freeports.
• Gifts to political parties.
2. Taxable total profits
• Gifts for national purposes.
a) Recognise the expenditure that is
4. Payment of inheritance tax allowable in calculating the tax-adjusted
trading profit.[2]
a) Identify who is responsible for the
payment of inheritance tax and the due b) Recognise the relief which can be
date for payment of inheritance tax.[2] obtained for pre-trading expenditure.[1]

c) Compute capital allowances

(i) as for income tax.[2] • The temporary extension to the carry
(ii) the main pool super deduction of back of trading losses incurred in
130% and special rate pool first year accounting periods ending between 1
allowance of 50% for expenditure April 2020 and 31 March 2022 from
incurred from 1 April 2021 to 31 March one year to three years.
2023.[2]
• Apportionment in order to determine
d) Compute property business profits and the amount of main pool super
understand how relief for a property deduction where a period of account
business loss is given.[2] straddles 1 April 2023.
e) Understand how trading losses can be 3 Chargeable gains for companies

carried forward.[2]
a) Compute and explain the treatment of
f) Understand how trading losses can be chargeable gains.[2]
claimed against income of the current or
previous accounting periods.[2] b) Explain and compute the indexation
allowance available using a given
g) Recognise the factors that will influence indexation factor.[2]
the choice of loss relief claim.[2]
c) Explain and compute the treatment of
h) Recognise and apply the treatment of capital losses.[1]
interest paid and received under the loan
relationship rules.[1] d) Understand the treatment of disposals of
shares by companies and apply the
i) Recognise and apply the treatment of identification rules including the same
qualifying charitable donations.[2] day and nine day matching rules.[2]
j) Compute taxable total profits.[2] e) Explain and apply the pooling

provisions.[2]
Excluded topics
f) Explain and apply the treatment of bonus
• Research and development issues, rights issues, takeovers and
expenditure. reorganisations.[2]
• Non-trading deficits on loan g) Explain and apply rollover relief.[2]

relationships.
Excluded topics
• Relief for intangible assets.
• A detailed question on the pooling
• Patent box. provisions as they apply to limited
companies.
• Carried forward losses prior to 1 April
2017. • Substantial shareholdings.
• Restriction on carried forward losses • Calculation of indexation factors.

for companies with profits over £5
million. • Restriction on carried forward capital
losses for companies with
• Disposals of assets for which a 130% chargeable gains over £5 million.
main pool super deduction or 50%
special rate pool first year allowance 4. The comprehensive computation of
claim was made. corporation tax liability

a) Compute the corporation tax liability.[2] F Value added tax (VAT)

Excluded topics 1. The VAT registration requirements
• The tax rates applicable to periods a) Recognise the circumstances in which a

prior to financial year 2017 person must register or deregister for
VAT (compulsory) and when a person
• Marginal relief may register or deregister for VAT
(voluntary).[2]
• Franked investment income
b) Recognise the circumstances in which
5. The effect of a group corporate pre-registration input VAT can be
structure for corporation tax recovered.[2]
purposes
c) Explain the conditions that must be met
a) Define a 75% group, and recognise the for two or more companies to be treated
reliefs that are available to members of as a group for VAT purposes, and the
such a group.[2] consequences of being so treated.[1]
b) Define a 75% chargeable gains group, 2. The computation of VAT liabilities

and recognise the reliefs that are
available to members of such a group.[2] a) Calculate the amount of VAT
payable/recoverable.[2]
Excluded topics b) Understand how VAT is accounted for
and administered.[2]
• Relief for trading losses incurred by
an overseas subsidiary. c) Recognise the tax point when goods or
services are supplied.[2]
• Consortia.
d) List the information that must be given
• Pre-entry gains and losses. on a VAT invoice.[1]
• The anti-avoidance provisions where e) Explain and apply the principles

arrangements exist for a company to regarding the valuation of supplies.[2]
leave a group.
f) Recognise the principal zero rated and
• The tax charge that applies where a exempt supplies [1]
company leaves a group within six
years of receiving an asset by way of g) Recognise the circumstances in which
a no gain/no loss transfer. input VAT is non-deductible.[2]
• Overseas aspects of corporation tax. h) Recognise the relief that is available for
impairment losses on trade debts.[2]
• Transfer pricing.
i) Understand the treatment of the sale of a
6. The use of exemptions and reliefs in business as a going concern.[2]
deferring and minimising corporation
tax liabilities: j) Understand when the default surcharge,
a penalty for an incorrect VAT return,
The use of such exemptions and reliefs and default interest will be applied.[1]
is implicit within all of the above sections
1 to 5 of part E of the syllabus,
concerning corporation tax.

k) Understand the VAT treatment of 1. Use computer technology to

imports, exports and trade outside the efficiently access and manipulate
UK. [2] relevant information.
l) Understand postponed accounting for 2. Work on relevant response options,

VAT on imports. [2] using available functions and
technology, as would be required in
Excluded topics the workplace.
• VAT periods where there is a change 3. Navigate windows and computer

of VAT rate. screens to create and amend
responses to exam requirements,
• Partial exemption. using the appropriate tools.
• In respect of property and land: 4. Present data and information
leases, do-it-yourself builders, and a effectively using the appropriate
landlord's option to tax. tools.
• Penalties apart from those listed in

the study guide.
• The reverse charge for building and

construction services.
• Rules applying to imported goods

with a value below £135.
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 scheme for retailers.
G Employability and technology

skills

12. Summary of changes to Taxation – United Kingdom (TX-

UK)
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.
There are changes to the syllabus and these are summarised in the tables below.
Table 1 – Additions
Section and subject area Syllabus content
B3 Income from self-employment Excluded topic added:

- excluded topics • The temporary extension of
the carry back of trading
losses incurred in the tax
years 2020/21 and 2021/22
from one year to three years.
D2 The liabilities arising on Excluded topic added:

chargeable lifetime transfers
• Endowment mortgages.
and on the death of an
individual – excluded topics
E1 The scope of corporation tax Excluded topic added:

– excluded topics
• Freeports.
E2 Taxable total profits New part (c)(ii) added to capital
(c)(ii) allowances
(ii) the main pool super
deduction of 130% and special
rate pool first year allowance of
50% for expenditure incurred
from 1 April 2021 to 31 March
2023.
E2 Taxable total profits - Excluded topic added:

excluded topics • Disposals of assets for which
a 130% main pool super
deduction or 50% special
rate pool first year allowance
claim was made.

excluded topics

• The temporary extension to

the carry back of trading
losses incurred in accounting
periods ending between 1
April 2020 and 31 March
2022 from one year to three
years.

excluded topics • Apportionment in order
to determine the amount
of main pool super deduction
where a period of account
straddles 1 April 2023.
F2 (l) The computation of VAT New part (l) added:

liabilities l) Understand postponed
accounting for VAT on imports.
F2 The computation of VAT Excluded topic added:

liabilities – excluded topics
• Rules applying to imported
goods with a value below
£135.
Table 2 – Amendments
B2 Income from employment - Excluded topics amended for

excluded topics clarification:
• The calculation of a car
benefit for cars which have
emissions below 50g/km and
are neither electric nor
hybrid.
B3 Income from self-employment Excluded topics amended dates:

- excluded topics • Apportionment in order to
determine the amount of
annual investment allowance
where a period of account
spans 1 January 2022.
• Knowledge of the annual

investment allowance limit of

£200,000 applicable from 1

January 2022.
C3 (c) Gains and losses on the Part (c) amended to remove

disposal of movable and “principal” given that HMRC now
immovable property refer to “private residence relief”.
c) Calculate the chargeable gain
when a private residence is
disposed of.
C5 The computation of capital Excluded topics amended; wording

gains tax – excluded topics added for clarity:
• Mixed use property being
property with both
commercial and residential
parts.
C6 (a) The use of exemptions and Wording amended for consistency

(ii) reliefs in deferring and and to agree to HMRC wording:
minimising tax liabilities (a)(ii) gift holdover relief for the gift of
arising on the disposal of business assets.
capital assets
F2 (k) The computation of VAT Wording amended to delete

liabilities reference to EU, since no longer
relevant:
k) Understand the VAT treatment of
imports, exports and trade
outside the UK.

Table 3 – Deletions
B2 Income from employment – Removed from excluded topics:

excluded topics • The reduced charge
applicable to zero emission
company vans.
F2 The computation of VAT Removed from excluded topics:

liabilities – excluded topics • Postponed accounting for
VAT on imports
There have been no other amendments to the syllabus.

TX-UK Syllabus - J22-M23 Final

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Taxation – United Kingdom (TX-UK)

Designed to help with planning study and to provide

1 © ACCA 2022-2023 All rights reserved.

2 © ACCA 2022-2023 All rights reserved.

1. Intellectual levels 2. Learning hours and

3 © ACCA 2022-2023 All rights reserved.

3. The structure of ACCA qualification

4 © ACCA 2022-2023 All rights reserved.

4. Guide to ACCA Strategic Professional

5 © ACCA 2022-2023 All rights reserved.

Time should be taken to ensure that all the

6 © ACCA 2022-2023 All rights reserved.

Regulations issued or legislation passed in

The term effective relates to when regulation

The study guide offers more detailed

7 © ACCA 2022-2023 All rights reserved.

6. Relational diagram linking Taxation – United Kingdom

7. Approach to examining the syllabus

The syllabus is assessed by a three-hour computer-based examination.

Some questions will adopt a scenario/case study approach.

Section A comprises 15 objective test questions of 2 marks each

All other questions can cover any areas of the syllabus.

Total 100 marks

8 © ACCA 2022-2023 All rights reserved.

8. Introduction to the syllabus

Section G of the syllabus contains outcomes relating to the demonstration of appropriate

9 © ACCA 2022-2023 All rights reserved.

On successful completion of this exam, candidates should be able to:

Relational diagram of the main capabilities

10 © ACCA 2022-2023 All rights reserved.

10. The syllabus 4. Gains and losses on the disposal of

2. Principal sources of revenue law and D Inheritance tax

5. The comprehensive computation of 5. The effect of a group corporate structure

6. National insurance contributions for 6. The use of exemptions and reliefs in

3. Gains and losses on the disposal of

11 © ACCA 2022-2023 All rights reserved.

G Employability and technology skills

1. Use computer technology to efficiently

2. Work on relevant response options,

3. Navigate windows and computer

12 © ACCA 2022-2023 All rights reserved.

11. Detailed study guide 3. The systems for self-assessment and

13 © ACCA 2022-2023 All rights reserved.

5. The procedures relating to c) Recognise the income assessable.[2]

• Information powers. h) Recognise the circumstances in which

1. The scope of income tax • The calculation of a car benefit for

Excluded topics • Tax free childcare scheme.

• Income from trusts and settlements. • Optional remuneration arrangements

2. Income from employment 3. Income from self-employment

14 © ACCA 2022-2023 All rights reserved.

c) Recognise the expenditure that is ii) Explain and compute the

g) Recognise the factors that will influence • Change of accounting date.

15 © ACCA 2022-2023 All rights reserved.

• Non-deductible capital expenditure • The detailed rules for establishing

a) Compute property business profits.[2] • The cap in respect of the property

16 © ACCA 2022-2023 All rights reserved.

Excluded topics • Venture capital trusts.

17 © ACCA 2022-2023 All rights reserved.

b) Explain and apply the identification rules

c) Calculate the chargeable gain when a Excluded topics

18 © ACCA 2022-2023 All rights reserved.

• Business asset disposal relief lifetime • Excluded property.

a) Explain and apply capital gains tax • Associated operations.