TX-UK and ATX-UK - FA 2020 Exam Docs June 21 To March 22 - Final
TX-UK and ATX-UK - FA 2020 Exam Docs June 21 To March 22 - Final
TX-UK and ATX-UK - FA 2020 Exam Docs June 21 To March 22 - Final
The following notes refer to Taxation – United Kingdom (TX-UK) and Advanced
Taxation – United Kingdom (ATX-UK) only. Guidance for other variant exams – where
available – is published on the ACCA website.
Examinations falling within the period 1 June to 31 March generally examine the
Finance Act which was passed in the previous year. Exams falling in the period 1
June 2021 to 31 March 2022 will examine the Finance Act 2020 (which received Royal
Assent on 22 July 2020).
Finance Acts
The latest Finance Act which will be examined in TX-UK and ATX-UK in examinations
falling within the period 1 June 2021 to 31 March 2022 is the Finance Act 2020.
With regard to prospective legislation where, for example, provisions included in the
Finance Acts will only take effect at some date in the future, such legislation will not
normally be examined until such time as it actually takes effect. The same rule
applies to the effective date of the provisions of an Act introduced by statutory
instrument.
Articles
The following relevant articles have been published in Student Accountant and are
also available on the ACCA website:
TX-UK:
• Finance Act 2020
• Examiner’s approach to Taxation – United Kingdom (TX-UK)
• Adjustment of profit questions
• Objective test questions
• Higher skills
• TX-UK – A guide to using the examiner’s reports
• TX-UK – A guide to reflection for retake students
The following articles are updated each year for changes in the Finance Act
• Inheritance tax (Parts 1 & 2)
• Chargeable gains (Parts 1 & 2)
• Value added tax (Parts 1 & 2)
• Groups
• Benefits
• Motor cars
ATX-UK:
• Finance Act 2020
• Examiner’s approach to Advanced Taxation – United Kingdom (ATX-UK)
• Stepping up from TX-UK to ATX-UK
• Passing the ATX-UK exam
• Guidance on answering Section A questions for ATX-UK
• Improving your performance in ATX-UK – in 5 parts
• Exam technique and fundamental technical issues for ATX-UK
• ATX-UK – A guide to using the examiner’s reports
• ATX-UK – A guide to reflection for retake students
The following articles are updated each year for changes in the Finance Act
• Trusts and tax for ATX-UK – in 4 parts
• Inheritance tax and capital gains tax for ATX-UK – in 4 parts
• International aspects of personal taxation for ATX-UK – in 4 parts
• Corporation tax for ATX-UK – in 4 parts
• Corporation tax– group relief for ATX-UK – in 4 parts
• Corporation tax – groups and chargeable gains for ATX-UK – in 4 parts
• Taxation of the unincorporated business – the new business – in 4 parts
• Taxation of the unincorporated business – the existing business – in 4 parts
The following supplementary instructions and tax rates and allowances will be
reproduced in the exam in examinations in the period 1 June 2021 to 31 March 2022.
The tick () indicates whether this information is included, and therefore examinable,
in TX-UK and ATX-UK. In addition, other specific information necessary for
candidates to answer individual questions will be given as part of the question.
SUPPLEMENTARY INSTRUCTIONS TX- ATX-
UK UK
1. You should assume that the tax rates and allowances for the tax year 2020/21 and for
the financial year to 31 March 2021 will continue to apply for the foreseeable future
unless you are instructed otherwise.
2. Calculations and workings need only be made to the nearest £.
rates rates
Basic rate £1 - £37,500 20% 7.5%
Higher rate £37,501 - £150,000 40% 32.5%
Additional rate £150,001 and over 45% 38.1%
A starting rate of 0% applies to savings income where it falls within the first £5,000 of taxable
income.
Personal allowance
£
Where adjusted net income is £125,000 or more, the personal allowance is reduced to zero.
Residence status
Days in UK Previously resident Not previously resident
The percentage rates applying to petrol-powered motor cars (and diesel-powered motor cars
meeting the RDE2 standard) with CO2 emissions up to this level are:
For hybrid-electric motor cars with CO2 emissions between 1 and 50 grams per kilometre, the
electric range of the motor car is relevant:
Electric range
130 miles or more 0%
70 to 129 miles 3%
40 to 69 miles 6%
30 to 39 miles 10%
Less than 30 miles 12%
Property income
Basic rate restriction applies to 100% of finance costs relating to residential properties.
Motor cars
New motor cars with CO2 emissions up to 50 grams per kilometre 100%
CO2 emissions between 51 and 110 grams per kilometre 18%
CO2 emissions over 110 grams per kilometre 6%
Corporation tax
Rate of tax – Financial year 2020 19%
Rate of tax on excess over nil rate band – Lifetime rate 20%
– Death rate 40%
reduction
rates property
Lower rate 10% 18%
Higher rate 20% 28%
Capital gains tax: business asset disposal relief (formerly entrepreneurs’ relief) and
investors’ relief
Class 1A 13.8%
unprompted prompted
disclosure disclosure
Deliberate and 100% 30% 50%
concealed
Deliberate but not 70% 20% 35%
concealed
Careless 30% 0% 15%
Up to £150,000 0%
£150,001 − £250,000 2%
£250,001 and above 5%
Stamp duty
Shares 0.5%