Paper 2.3 - Business Taxation (UK)
 

Aim

To develop knowledge and understanding in the core areas of tax related to businesses and their employees.

Objectives

On completion of this paper candidates should be able to:

  • explain the operation of the UK tax system
  • prepare computations of the corporation tax liability for individual companies and groups of companies
  • prepare computations of the income tax liability for employees, sole traders and partnerships
  • Prepare computations of the chargeable gains arising on incorporated and unincorporated businesses
  • explain and apply the principles and scope of Value Added Tax
  • explain the impact of National Insurance Contributions on employees, employers and the self-employed
  • explain the use of exemptions and reliefs in deferring or minimising tax liabilities and
  • demonstrate the skills expected in Part 2

Content

Corporate businesses scope of corporation tax, residence, profits chargeable to corporation tax, charges on income, chargeable gains, calculation of the corporation tax liability, overseas aspects, groups of companies, self assessment system, Value Added Tax.

Unincorporated businesses basic income tax computation, self assessment system, Schedule D case I/II, Capital gains tax, Value Added Tax, Class 2 and Class 4 NIC.

Employees Schedule E, occupational pension schemes, Class 1 and Class 1A NIC.

Tax planning employment v self-employment, remuneration packages, choice of business medium, incorporation of a business, disposal of a business, directors and shareholders.

Click on relevant title for Paper 2.3 - Business Taxation syllabus.

Paper 2.3(BWA) - Botswana 
Paper 2.3(CHN) - China 
Paper 2.3(CZE) - Czech Republic 
Paper 2.3(GBR) - UK 
Paper 2.3(HKG) - Hong Kong
Paper 2.3(HUN) - Hungary 
Paper 2.3(IND) - India 
Paper 2.3(IRL) - Ireland 
Paper 2.3(LSO) - Lesotho 
Paper 2.3(MWI) - Malawi 
Paper 2.3(MYS) - Malaysia 
Paper 2.3(POL) - Poland 
Paper 2.3(RUS) - Russia
Paper 2.3(SGP) - Singapore 
Paper 2.3(ZAF) - South Africa 
Paper 2.3(ZWE) - Zimbabwe

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