If you’re preparing for your Taxation (ACCA TX-UK) exam, don’t worry. In this article, we explore several questions and concerns to help you get the most out of your revision. This includes:
- The core areas and objectives of the exam
- How the exam is structured
- Managing your time during the exam
- The benefits of studying Taxation
- Challenges
- Additional resources
What are the exam topics?
The ACCA Taxation exam aims to develop your knowledge and skills relating to the UK tax system for individuals, single companies, and groups of companies.
The core areas and objectives for the syllabus are as follows:
- The UK tax system and its administration - explain the operation and scope of the tax system, the obligations of taxpayers and/or their agents, and the implications of non-compliance.
- Income tax and NIC liabilities - explain and compute the income tax liabilities of individuals and the effect of national insurance contributions (NICs) on employees, employers, and the self-employed.
- Chargeable gains for individuals - explain and compute the chargeable gains arising on individuals.
- Inheritance tax - explain and compute the inheritance tax liabilities of individuals.
- Corporation tax liabilities - explain and compute the corporation tax liabilities of individual companies and groups of companies.
- Value added tax (VAT) - explain and compute the effects of VAT on incorporated and unincorporated businesses.
- Employability and technology skills - demonstrate employability and technology skills.
What is the exam structure?
The exam is divided between three sections and is predominantly computational with some discursive elements.
| Section | Number of marks |
|---|
Section A - 15 objective test questions
- Two marks per question
| 30 marks |
Section B - Three case style questions
- 10 marks each (each case comprises five objective test questions worth two marks per questions)
| 30 marks |
Section C - One 10 mark constructed response (long) question covering any area of the syllabus
- Two 15 mark constructed response (long) questions. One focusing on income tax, one on corporation tax
| 40 marks |
| Total | 100 marks |
Timings
The total time allowed in the exam is three hours (1.8 minutes per mark). Therefore, it is recommended to spend approximately:
- 54 minutes on Section A
- 54 minutes on Section B (18 minutes per case)
- 72 minutes on Section C (18 minutes for the 10 mark question, 27 minutes each for the 15 mark questions).
Note that:
- Section A and B questions can be drawn from any area in the syllabus.
- Objective test questions in sections A and B will be of varying styles. These include multiple choice, fill in the blank, pull down list, hot area, and enhanced matching.
- The two 15 mark questions in section C could include a small number of marks in respect of other taxes.
Any of the questions may include issues relating to the minimisation or deferral of tax liabilities.
How does the ACCA TX exam subject help towards my career and/or studies?
This subject provides a comprehensive understanding of the principles of taxation and its application in professional practice. Tax is a significant aspect of financial management and decision-making. Therefore, this knowledge is crucial for any accounting professional.
The ACCA TX subject also equips you with practical skills to calculate tax liabilities for individuals and businesses, understand the administration of taxes, and apply tax planning techniques. These skills are highly valued in many finance roles. A strong understanding of taxation can open doors to a variety of career paths, such as tax consultancy, financial accounting, and management accounting. Employers often actively seek professionals who can navigate tax law.
In addition to this, the knowledge gained from this exam subject lays the groundwork for more advanced studies in taxation - much of the knowledge from ACCA TX is explored in further detail in ACCA Advanced Taxation (ATX) at the strategic professional level in the ACCA qualification.
Common challenges and tips for the ACCA TX exam
Have a broad knowledge of the syllabus
The syllabus is large and learners are faced with 33 questions during the exam. This means that you could be tested on a wide variety of topics, so a broad knowledge of the syllabus is extremely important.
When studying, don’t skip over parts of the syllabus, and spend time learning the pro formas. Many computational questions require the use of a standard layout/pro forma, so be sure you know these thoroughly before the exam.
CGT reliefs
Capital gains tax (CGT) reliefs are also a tricky part of the syllabus as there are a lot of detailed rules to learn and memorise. Kaplan’s ‘tax on page’ document summarises these on one page and categories them into three different types of reliefs. This can significantly help this area become less daunting during the revision stage, especially when practicing questions.
Higher skills question
The exam usually includes at least one ‘higher skills’ question. These questions tend to:
- include information for several different requirements, mixed together.
- ask about different taxes in one question.
- require you to work in the margin.
- require you to consider the consequences of alternative actions.
- ask for the net cash impact of a transaction, rather than just the tax cost.
The examining team appear to be favouring two techniques that we need to be aware of:
- expecting the candidate to work more in the margin than previously, so less marks can be allocated for certain workings.
- bringing the candidate in part way through a pro forma to test the latter parts without providing marks for earlier parts.
With this in mind, be encouraged to think more about the consequences of taxes (rather than simply mechanical processing of computations) throughout the course. This will help with the higher skills element of the exam.
If you learn the rules and the standard pro formas, as well as practice exam-style questions, you should perform well in the exam.
Additional support and resources
If you’re not already studying ACCA Taxation with us at Kaplan, give yourself the best chance to pass the exam with our ACCA TX-UK course. With four study methods, you’ll find a course that’s perfect for you.
When studying with Kaplan, you will have access to the Academic Support team via the ‘contact a tutor’ option on your MyKaplan. They are available seven days a week and can support you with any tricky topics via live chat, email, or by requesting a call back.
And if you have any additional learning needs, get in touch with our inclusion team who can support you.
Practicing exam-standard questions in timed conditions is essential when preparing for your real exam. Be encouraged to practice questions in the ACCA practice platform when possible.
Alternatively, Kaplan Publishing, an ACCA Content Partner, also offers ACCA Study Texts, Exam Kits, and Pocket Notes - which cover the full syllabus and help you feel exam confident.