ACCA P6

MIND MAP
Benefits:
How to Use them?
● Test Your Knowledge.
Identify the areas, Go back to my SMART ● Improve Tax Rules
Revise which you can’t revise NOTES and revise those ● Save time
Through Mind Map through Mind Map areas. ● Avoid of mixing of rules

Aziz Ur Rehman (ACCA, CMA, CPA)

Teaching Experience 9 Years
Contact: +923327670806
Azizurrehman89@hotmail.com
For updates visit: https://www.facebook.com/accastudymaterialonlineclasses/
 Contact: +923327670806
azizurrehman89@hotmail.com ACCA P6 (ADVANCE TAXATION)

Taxable Person VCT

 What are the tax implications of UK Resident and non-Uk Resident persons? What is objective VCT?
 What are the 3 points for Automatic non UK Resident? What are the conditions for Company to join VCT?
 What are the 3 points for Automatic UK resident persons?
 What are 5 UK ties and how they are considered to decide resident status? What is the fund raising limit limits?
 What is Eligible interest and what is it’s tax treatment? What is the time limit to utilize the funds raised?
 What is the Amount of personal allowance, How & when it will be reduced? Investor
 How and when income tax bands will be extended?. Discus the %age tax saved due to extension of Who can purchase the shares of EIS and how?
bands. What is annual maximum purchase limit?
 How the combine income of spouse will be taxed? What is income tax implication?
 What is Child benefit income tax charge, How? And when it will be calculated? What is capital gain tax implication?
Taxation of Trust What is Inheritance tax implication?
 Define Discretionary trust? • Define Interest in possession trust? Individual saving account (ISA)
 What is Income tax implication of trust? • What is CGT implication of trust?  What is deposit limit of ISA? ● What is income tax and CGT implication of ISA?
 What is IHT implication of trust?  What is additional allowance of ISA and when it is available?
Tax Reducer Property Income
EIS SEIS  How to calculate taxable premium for head lease and sublease?
What is objective of EIS? What is objective SEIS?  How to calculate rental profit? And what is the treatment of finance cost?
 What is the treatment of Rent a room from main residence?
What are the conditions for Company to join What are the conditions for Company to join
 What are the conditions for Furnished holiday letting? And what are the benefits of FHL?
EIS? SEIS?  What is the treatment Property loss?
What is the fund raising limit limits? What is the fund raising limit limits?  What are the tax implications of Real estate investment trust?
 Accrued income scheme
What is the time limit to utilize the funds raised? What is the time limit to utilize the funds raised?
Employment income
Investor:  What are the points to decide that an individual is an employee?
Who can purchase the shares of EIS and how? Who can purchase the shares of EIS and how?  What is the Receipt basis rule?
 Give 5 examples of Allowable deductions from employment income?
What is annual maximum purchase limit? What is annual maximum purchase limit?
 What are the tax implications if and individual uses his own car for business purpose?
What is income tax implication? What is income tax implication?  Exempt benefits (Read from notes)
What is capital gain tax implication? What is capital gain tax implication?  What is the taxable amount if individual receive Vouchers?
What is Inheritance tax implication? What is Inheritance tax implication?

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 Contact: +923327670806
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Living accommodation Who are the eligible employees for this scheme and at what terms?
 What is Job related accommodation? And what is tax implication? What is the time limit to exercise the shares?
 How to calculate taxable benefit if accommodation provided is rented by employer? What could be the maximum limit for share option for an employee and what could be the exercise
 How to calculate taxable benefit if accommodation provided is owned by employer?, when and price?
how to calculate additional benefit? What are the tax implications at grant date, exercise date and disposal date?
 What are expenses connected with living accommodation? And what is the tax implication? Enterprise Management Incentive (EMI):
Car Benefit  What is purpose of scheme?
What is Pool car and what is tax treatment?  Explain whether an employee can contribute, if yes then how much and for how much time?
How to calculate taxable benefit if employer provides car for private us and it is not pool car?  Who are the eligible employees for this scheme and at what terms?
How to calculate Fuel benefit if company paid for fuel cost for private use?  What is the time limit to exercise the shares?
Van benefit: How to calculate taxable benefit?  What could be the maximum limit for share option for an employee and what could be the
Use of asset: How to calculate taxable benefit? exercise price?
Gift of asset: How to calculate taxable benefit?  What are the tax implications at grant date, exercise date and disposal date?
Beneficial loan: How to calculate taxable benefit? Exempt loan?  What are the criteria for company to join EMI scheme?
Redundancy Payment  How EMI share affects entrepreneur relief?
 What are Fully Exempt termination benefits?  What are the tax implications at grant date, exercise date and disposal date if:
 What are Fully taxable termination benefits? a) Exercise Price is more than Market Value at grant date
 What are partially Exempt termination benefits? b) Exercise Price is less than Market Value at grant date
Unapproved Share Option scheme Unapproved Share incentive
 What are the Income Tax and CGT implications of unapproved share option at grant date, exercise What do you mean by share incentive?
date and disposal date? What are the income tax and NIC implications of share incentives at grant date?
Approved Share Option scheme What are the capital gain tax implications of share incentives at disposal date?
Saving Related Share option scheme (SAYE): Approved share Incentive plan (SIP)
What is purpose of scheme?  What is the maximum Limit of free shares which an employer can grant?
Explain whether an employee can contribute, if yes then how much and for how much time?  What are partnership shares what is the maximum limit?
Who are eligible employees for this scheme and at what terms?  What is the maximum Limit of free shares which an employer can grant on the basis of partnership
What do you mean by withdrawal date and what is tax implication at withdrawal date? shares?
 What could be the exercise price?  What is the tax implication of dividend received on shares of SIP?
What are the tax implications at grant date, exercise date and disposal date?  Who are the eligible employees for this scheme and at what terms?
Company share option plan (CSOP):  What are the income tax and NIC implications of share incentives at grant date and withdrawal
What is purpose of scheme? date?
Explain whether an employee can contribute, if yes then how much and for how much time?  What are the tax implications at grant date, exercise date and disposal date?

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 Contact: +923327670806
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NATIONAL INSURANCE CONTRIBUTIONS  Define Short Life Assets and How to calculate capital allowances on short life asset?
 Give examples of cash employment income specially millage allowance and non-cash employment  Define Private Use assets and How to calculate capital allowances Private Use assets?
income? Basis Period
 Who will pay class-1 employee NIC? what will be the amount?  First year Rule
 Who will pay class-1 employer NIC & Class 1-A NIC? what will be the amount? How it affects  Second Year Rule
trading profit?  When closing date of first period of account don’t fall in second tax year
 Who will pay class-2 & class-4 employee NIC? what will be the amount?  When closing date of first period of account fall in second tax year and duration of 1st period is
Trading Profit 12 month or more than 12 month.
 Explain whether the following expensed are Allowed or Disallowed?  When closing date of first period of account fall in second tax year and duration of 1st period is
 Capital Expenditures less than 12 month.
 Revenue Expenditure  3rd & Onwards year Rule/Current year basis
 Entrainment expense for employees, customer and suppliers  Cessation year Rule
 Gifts to employees, customers and suppliers  Change of accounting Date
 Gift of samples of goods a) 1st New Short POA and 2 closing dates fall in a tax year
 Legal cost to issue shares, renew short lease contract, obtain finance, purchase non-current and b) 1st New Short POA and 1 closing date fall in a tax year
registering patents? c) 1st New Long POA and closing date of 1st new POA falls in next tax year.
 Give examples of donations which are allowable and disallowed? d) 1st New Long POA and closing date of 1st new POA don’t falls in next tax year.
 What is treatment of lease charges of car and premium paid on lease? Trading Losses
 Discuss tax implication of drawing in trading profit and pre-trading expenditure?  Explain opening year loss relief
 Which of the following NIC is deductible from trading profit? Class-1 employee, Class-1 employer,  Explain Relief against total income of current year or previous year and define CAP limit?
Class-1A, Class-2 and Class-4.  Explain Relief against Capital gain of current year or previous year
Capital Allowances  Explain Carry forward loss relief
 Define plant and machinery?  Explain Terminal loss Relief
 What is tax treatment of substantial Replacement expenditure and hire purchase assets?  Business Transferred to company
 What are the items off P&M which will become part of Main Pool?  How to calculate tax savings?
 What are the items off P&M which will become part of Special Rate Pool? Partnership
 What is the amount of AIA? When available? When pro-rated? On which P&M AIA is not available? How to make appropriation statement?
In which Period of account AIA is not available? How to calculate taxable profit of a partner who joins the partnership?
 What is the amount of WDA? When available? When pro-rated? In which Period of account WDA How to calculate taxable profit of a partner who left the partnership?
is not available? What is Small pool WDA? How to distribute capital gains of partnership between partners?
 What is the amount of FYA? When available? In which Period of account FYA is not available? Cash Basis for small Businesses
 How to calculate capital allowances in last period of account of trade? Prepare format of cash basis for small business?
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 Contact: +923327670806
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Pension Shares
 What are the tax implications of occupational Pension Scheme (OPC) contribution by an individual?  What is matching rule? And How to calculate market value of quoted shares?
 What are the tax implications of Personal Pension Scheme (PPC) contribution by an individual?  Define Sale of right nil paid and discuss tax implications
 What are the tax implications of pension contribution by an employer? Reorganisation & Takeover: What are tax implications of Takeover in following cases?
 How to calculate maximum amount of Relief  Consideration received in Shares only
 How to calculate annual limit and what is annual allowance charge?  Consideration received in Shares and cash
 What is Life time limit?  Consideration received in Shares and cash but cash is small
 When an individual can receive Pension Benefit and what are the tax implications of pension  Consideration received includes qualifying corporate bonds (QCB)
benefits? Liquidation: What will be the tax implications for shareholder at Liquidation of a company
Capital Gain Tax a) If there is a Capital gain at liquidation
 Meaning and types of chargeable disposal b) If there is a Capital loss at liquidation
 Give 6 examples of exempt assets? Transfer of asset into trust what is the tax implication of transfer of asset to trust?
 What is the tax implication of transaction between spouse? Principal Private Residence (PPR) Relief
 What are the tax implications of an asset which was inherited on death of an individual?  When and how to calculate relief?
 What are tax rates of CGT?  Explain Deemed Occupation duration?
 What is the due date of Payment of CGT?  What will be the impact of Business use on PPR relief?
 When installment option is available for payment of CGT?  When and how to calculate Letting Relief?
 What is negligible value claim and what are the tax implications? Entrepreneur Relief
 How to calculate capital gain if only part of an asset is sold?  When and how is it available?
o What is Small part disposal? What are the tax implications?  What are Qualifying Assets for entrepreneur relief?
 Define ` and discuss tax implications of the following?  What is Qualifying ownership period for entrepreneur relief?
o Disposal of wasting and Non-wasting chattels?  Define Associated Disposal and discuss its tax implication?
Asset lost/Destroyed: What are the tax implications of following? Rollover Relief
 Asset lost/destroyed and No insurance proceeds received  When and how is it available?
 Asset lost/destroyed, insurance proceeds received but not reinvested  What are Qualifying Assets for rollover relief?
 Asset lost/destroyed, insurance proceeds received and fully reinvested to purchase new asset  Qualifying reinvestment period
 Asset lost/destroyed, insurance proceeds received but partially reinvested to purchase new asset  What is Partial Reinvestment and explain its impacts of rollover relief?
Asset Damaged  Define depreciating asset? And Explain what will be impact on rollover relief if newly purchased
 Asset damaged and No insurance proceeds received asset is depreciating asset
 Asset damaged, insurance proceeds received but not reinvested Gift Relief
 Asset damaged, insurance proceeds received and ≥ 95% reinvested to purchase new asset  When and how is it available?
 Asset damaged, insurance proceeds received and < 95% reinvested to purchase new asset  What are Qualifying Assets?

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 Contact: +923327670806
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 What is Sale at undervalue and its impact on gift relief o Explain Automatic Remittance Basis
 How to calculate gift relief on Gift of shares? o Explain when Remittance basis can be claimed
 What will be the impact on gift relief if Donee Emigration from UK? Explain conditions and amount for Remittance Basis Charge
Overseas aspects of CGT
Incorporation Relief
 What are the capital gain tax implications if an individual is
 When and how is it available? o Resident and domiciled in UK
 What are the Conditions for incorporation relief? o Resident but not domiciled in UK
EIS Deferral Relief o Not resident in UK
 When and how is it available?  Remittance Basis (RB)
 What are the Conditions for EIS deferral relief? o What do you mean by Remittance?
 When EIS deferral relief will become taxable? o Explain Automatic Remittance Basis
SEIS Deferral Relief o Explain when Remittance basis can be claimed
 When and how is it available? Explain conditions and amount for Remittance Basis Charge
 What are the Conditions for SEIS deferral relief?  Define Temporary Non UK Resident and CGT Implications of temporary non UK Resident
Inheritance Tax
 Withdrawal of Relief
 Explain what are 3 types IHT?
Stamp Duty
 What is transfer of value, define related property and explain how to calculate transfer of value of
 What is Stamp Duty, Rate of stamp duty who will pay it? related property?
 Stamp Duty Reserve Tax?  What are the exemptions available on life time gifts?
 What is Stamp duty land tax?  What are IHT implications of PET at gift date?
 Exemption from stamp duty  What are the IHT implication of CLT at gift date and write down the format on paper?
Overseas aspects of IT  What are the IHT implications of PET and CLT on Death date of an individual and write down
 Resident Status format on paper?
 Splitting a tax year o Explain taper relief?
o Non UK resident individual arriving in Uk (4 Rules) o Explain Fall in value Relief if
o UK Resident individual leaving the UK (3 Rules) a) Asset held be donee @ death of donor
 What are the income tax implications if an individual is b) Asset sold be donee @ death of donor
o Resident and domiciled in UK  Death Estate
o Write down Death estate Proforma and explain the following
o Resident but not domiciled in UK
 Valuation of joint property, valuation of foreign property and property on mortgage?
o Not resident in UK  What is Residence Nil Rate band and when it is available?
 What are tax implications of Travel costs between individual’s UK home and place of work abroad o Explain when Reduced IHT Rate is applicable?
o If employer paid for travelling cost of employee o What is Quick Succession Relief?, when available? And formula to calculate QSR?
o If employer paid for travelling cost of family of employee o Explain Transfer of spouse’s unused NRB?
 Remittance Basis (RB)  Define Gift with Reservation and discuss IHT implications of GWR in following cases
o What do you mean by Remittance? a) Reservation Exist till death

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b) Reservation lifted before death o Explain Qualifying charitable Donation

 Business Property Relief: o Explain following points of Chargeable gains
o When available? a) Indexation allowance
o Explain excepted business & Excepted Asset on which BPR is not available?
b) Matching Rule on disposal of shares
o What are Qualifying Business Property for BPR
o What is % of BPR c) Explain Roll over for companies and what are changes as compared to individuals
o Explain Minimum ownership Period required for BPR  Losses of companies
o Explain when BPR can be Withdrawn? o Reliefs available for Trading Losses
 Agricultural Property Relief: a) Explain Restriction on Trading loss Relief
o When available? o Explain relief available for Property Losses
o Explain Agricultural Property & Agricultural Value o Explain treatment of Capital losses
o Explain Minimum ownership Period required for APR
 Explain Disincorporation Relief and conditions for disincorporation relief
o What is % of APR
o How to calculate APR of gift of shares in a farming company  What is Treatment of Research & Development Expenditure for SMEs?
o Explain when APR can be Withdrawn? o Qualifying Expenditure for enhanced relief
 Overseas Aspects o Treatment of qualifying expenditure on R&D if trading loss of company
o What are 3 type of UK Domiciled and explain Deemed UK Domiciled  What is Treatment of Research & Development Expenditure for Large co.?
 What are the IHT implications of UK domiciled and Non-Uk Domicile o Treatment of expenditure on R&D if trading loss of company
o Explain single Gross up rule on Death Estate  Transfer Pricing Legislation
o Explain Associated Operations
o Transaction by a Large company with any other company?
Corporation Tax
o Transaction by SMEs with another UK SME
 Define UK Resident company
o Transaction by SMEs with overseas company
 Chargeable accounting period:
 Explain Substantial Shareholding Exemption?
o Diff between Period of acc & chargeable acc. Period.
o SSE available on disposal of shares and remaining shares falls below 10%
o when CAP starts and ends?
o When there is no need to consider ownership of shares for SSE?
o How to calculate corporation tax if Long period of account
 Explain Tax treatment of disposal of Goodwill & Intangible assets?
 Taxable Total Profit
 Explain tax implication Patent Royalty & Patent Box?
o Trading Profit (changes)
 Close Company
o Capital allowances
o Benefit from CO to shareholder & Director
a) Related company
o Benefit from CO to shareholder
b) Associated co (1 AIA)
o Loan from shareholder to CO.
o Property income (changes)
o Loan from CO. to shareholder
o Explain Loan Relationship Rule and also explain the reliefs available on interest deficit?
a) What is Tax charge and how calculated?
o Explain tax implication Dividend income of company
 Situation when Tax charge arise but not be required to pay to HMRC?

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 Contact: +923327670806
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 Exemption from tax charge o If gain group

 Refund of tax charge from HMRC?  Re-construction & Re-Organisation
 Company with investment Business  Withdrawal of investment from CO.
o Define investment company? And what are the tax implication of management expenses of o Sale of shares
investment company? o Liquidation
 Personal Service company o Buy Back of shares
o Define Personal Service Company? And write down the format to calculate deemed salary a) Capital Repayment
from Personal Service company? b) Income Distribution
 Overseas Branch VAT
o Normal Tax implication  Types of Supply
o Exemption  Tax point
 Overseas Subsidiary  Compulsory Vat Registration
o Future Test
 Controlled foreign company
o Historical Test
o Define Controlled foreign company?  Voluntary VAT Registration
o What is CFC charge, how to calculate it?  VAT Group Registration
o Situation when no chargeable profit of CFC  Output VAT
 Associated/Connected company  Recovery of input VAT
o Define and explain tax implications of connected company? o Pre-registration
o Capital & Revenue Exp\
 75% Loss Relief Group
o Business Entertainment
o How to decide members of group? o Motor Car & Motor Exp
o What are the Benefits o Private use of asset
 75% Capital Gain Group o Bad Debts
o How to decide members of group? o Business & non business exp
o What are the Benefits  VAT on sale of Business
o De-Grouping Charge o Normal disposal
o Disposal as going concern
o Pre-entry Capital Losses
a) Conditions & tax implication
 Consortium  De-Registration
o How to decide members of group? o Compulsory
o What are the Benefits o Voluntary
 Transfer Of trade within a group o Consequences of De-Registration
o Special Rule  Land & Building
o If gain group o Type of Supply

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 Contact: +923327670806
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o Option to Tax
a) Conditions & tax implication
 Partially Exempt Businesses
o De-Minims Limits
o Annual Adjustment
 Capital Good Scheme
o Applicable upon?
o When did Adjustment require?
o Adjustment for sale?
 Special Schemes
o Cash Accounting Scheme
a) Conditions
b) Advantages & Disadvantages
o Annual accounting Scheme
a) Conditions
b) Advantages & Disadvantages
o Flat Rate Scheme
a) Conditions
b) Advantages & Disadvantages
 Imports, Exports, Acquisitions & Dispatches
 Administration of VAT
o VAT Return & Payment Procedure
o Normal & Less Detailed VAT Invoice
o VAT Surcharge
o VAT Records
o Penalties & Interest
o Errors in VAT Return
a) Minimum penalty & maximum penalty

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