F6 – Taxation This will be the third exam for F6 and the paper is 100% compulsory, we suggest you revise the entire syllabus. The following topics are areas which the examiner has highlighted as being important, core areas and will be regularly examined. Question 1 [25 or 30 marks] • Income Tax • Income from employment [in particular, the assessable income, benefits and allowable deductions.] • Income from self employment [in particular, the basis of assessment, allowable expenditure, assessable profits on commencement and cessation, capital allowances and relief for trading losses.] • Property and investment income [in particular, property business profits, savings income and dividend income.] • The computation of taxable income and income tax liability • The self assessment system [in particular, the time limit for submission of information, claims and payment of tax.] Question 2 [25 or 30 marks] • Corporation tax • Profits chargeable to corporation tax [in particular, the allowable expenditure in calculating the tax adjusted trading profit, capital allowances, property business profits, and relief for trading losses.] • Computation of corporation tax liability • Gains group aspect Question 1 or 2 might include a small element of chargeable gains. Value Added Tax [10 marks] A minimum of 10 marks will always be allocated to VAT which will be examined either as part of Question 1 or 2. The VAT element will be self contained and so can be answered on its own. • The computation of VAT liabilities [in particular, the tax point, valuation of supplies, non deductible input VAT, relief for impairment losses on trade debts] • Default Surcharge • The annual accounting scheme. Question 3 [20 marks] Capital Gains Tax • Computation of capital gains • Computation of the amount of allowable expenditure for a part disposal • Computation of a chargeable gain on disposal of a chattel • Computation of exemption when PPR is disposed • Share identification rules - Individuals • Exemptions and reliefs [in particular rollover and holdover relief] • Computation of capital gains tax payable by Individuals [in particular the calculation of taper relief.] Question 4 [15 marks] Some aspect of Income Tax or Corporation Tax not examined within question 1 Question 5 [10 marks] Some aspect of Corporation Tax or Income Tax not examined within question 2 Partnerships [with explanation of loss relief] Corporation tax loss relief Change of accounting date National Insurance contributions - will not be examined as a separate question, but may be examined in any question involving income tax or corporation tax.