ACCA - Association Of Chartered Certified Accountants
ACCA - Association Of Chartered Certified Accountants
ACCA - Association of Chartered Certified Accountants
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ACCA ATX Mind Maps
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ACCA - Association of Chartered Certified Accountants
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ACCA - Association Of Chartered Certified Accountants
Well designed mind maps written for the ACCA ATX Professional Level exam covering the whole of the syllabus, including key points, tax rules and rates, for effective leaning and guaranteed exam success
ACCA - Association of Chartered Certified Accountants
ACCA - Association of Chartered Certified Accountants
ACCA - Association of Chartered Certified Accountants
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Pro-Forma Corporation Tax Computation R&D Expenditure additional relief, can deduct Group Relief Group 75% group, e.g a 75% subsidiary
Name of company additional 130% of qualifying expenditure (SME’s) or 2 75% subs with same parent, surrender losses to
Corporation tax computation for AP ended: Above the tax line credit profitable group members to utilise against TTP in same
Amortisation/Impairment to goodwill not allowable period
Trading Profits x Surrendering company claimant company
Less Capital Allowances (x) Rollover Relief Capital losses cannot be surrendered
Interest Income x R&D Tax Credits
Misc. Income x Transfer Pricing Corresponding accounting periods
Chargeable Gains (deduct losses) x Arms length price which might have been expected Max group relief lower of:
Total Profits x if the parties had been independent persons dealing A Ltd TTP in corresponding period
Less: Qualifying Charitable Donations (x) with each other in a normal commercial manner B Ltd Loss in corresponding period
Corporation Tax Liability @ 19% x Then TTP minus group relief
Less: DTR (x)
Corporation Tax Payable @ 19% xx
Corporation c/f group relief available
Due 9 months and 1 day after the end of AP Tax Consortium Relief
(unless large)
2 or more companies between them own at least 75% of
Financial year is 1st Apr – 31st March Corporation Tax Losses another company (more than 5% but less than 75%)
Dividends exempt Pro-forma computation: Investing company consortium member
UK Resident CT on worldwide assets Trading Income x Target company consortium company
Non-resident companies UK income and gains Other Income x Losses surrendered from company to members
if trading through UK branch or agency Net Chargeable Gains x Downwards up to their % of TTP (% x subsidiary profit)
Total Profits x
Annual Investment Allowance £1million for a Less: cp/cb/cf losses (x) Max relief Lower of:
max of 12 months (spit between related Less: QCDs (x) -Available TTP of members
companies, in any way) TTP x -% sharing of loss
Interest Income
Overseas Income included in TTP Capital Gains Groups owning 75% or more of subs
Current period claimed against total profits before
Property Income share capital , two subs owned >/75%
QCD’s) then:
QCD Allowable Asset sold to another gains group member no
Carry back preceding 12 months (profit before QCD)
Indexation Allowance (Movement on RPI) gain/loss
Carry fwd automatically c/f if excess losses remain,
Assets acquired before December 2017): Receiving company base cost + indexation
profits can only be reduced by 50%
Gain/loss arising in an a/p can be transferred
Sales Proceeds Degrouping charge asset transferred at NGNL, within
-Capital losses can only be relieved against current or
Less: Cost 6 years the shares of recipient are sold, still owns asset
future chargeable gains
Unindexed gain Proceeds less Degrouping charge = cost
Less: Indexation allowance Restrictions on loss relief:
Indexed Gain Substantial Shareholding Exemption Trading
-Trade becomes small or negligible (only c/f)
Less: Rollover Relief company, >10% shares held for 12 months in 6 years
-Profits excess of £5M
, -Chargeable disposals of chargeable assets by Disposals between connected persons Business Asset Disposal Relief Individual can
chargeable persons Spouses/civil partners no chargeable gain claim on qualifying businesses (e.g sole trader)
-Chargeable disposal sale/gift of an asset, exchange Sister/brother chargeable gain -Investments do not qualify, must b disposed of as
of an asset, loss of an asset, compensation Connected persons @ MV going concern
-Exemptions disposals/gifts to charities Residential property not exempt, taxed -Disposal of shares 5% holding, trading company, 2
years, employee/director
Pro-Forma Capital Gains Chattels tangible, moveable property First £1m taxed @ 10% anything above @ 10/20%
Proceeds Wasting assets life less than 50 years (exempt) AEA deducted first
Less: Reliefs Non-wasting greater than 50 years, chargeable
Capital losses b/f Process and costs less than £6,000 are exempt Rollover relief selling a qualifying business asset
Trade Losses at a gain and reinvesting the net sale proceeds in a
Taxable gains Leases long lease (normal CGT way), short lease replacement business asset within the qualifying
Less: AEA (cost is depreciated) original cost x X/Y period – Balancing figure between taxable now
CGT Payable (proceeds net reinvested) and gain
Shares and Securities
-Payment due by 31 January following end of tax yar All chargeable except listed government securities, Enterprise Investment Scheme
-UK residential property payments on a/c due qualifying corporate bonds, ISA shares - Disposing of a chargeable asset giving rise to a gain
within 30 days of disposal Bonus issue free shares, to existing shareholders, and reinvesting the proceeds in qualifying shares
in proportion for shareholding -Qualify subscribe in cash, not be an
-Allowable capital losses in tax year are deducted from employee/director, have less than 30% interest
Rights issue offer of new shares @ discount to MV
gains in same tax year -Income tax relief @ 30% x cost of shares
Quoted shares gifted valued at mid-price:
-B/f losses deducted after AEA -Max investment - £1m = £300k reducer
Low x ½ x (high – low)
-Split gains between res. Prop and non-res. Prop -CGT exempt if held for 3 years
Matching rules same day, next 3 days, share pool
-Losses in year of death c/b 3 years LIFO basis -Inheritance qualify for BPR if held for 2 years
Part Disposals: Private Residence Relief (PPR)
Original Cost x A / (A + B) A = MV disposed of Disposal of UK residential property chargeable Gift Relief e.g lifetime gifts, agricultural property
B = MV of remainder Occupying house whole period gain exempt Use MV as proceeds trade, CBA/CA
-Deduct this from proceeds Part let out letting relief:
Gain x (periods of occupation/total period of Incorporation Relief Assets disposed by
Investors Relief Selling shares then subscribing for ownership) unincorporated business to company, net gains
new shares in unlisted trading company, held for 3 Business use not exempt deferred into share consideration, automatic,
years, rate of 10%, after 17 March 2016 Last 9 months = deemed occupation = exempt conditions – all assets transferred, going concern,
consideration whole/partly shares
Stamp Duty Land Tax Enterprise Investment Scheme Deferral = Gain x MV Shares received/MV total con.
Transfer of UK land & property -Encourage investors to subscribe for new shares in
Charged on non-residential property unquoted trading companies SEIS Reinvestment Relief Disposing of chargeable
0% £150k -Income tax relief @ 30% x cost of shares asset, giving gain which is reinvested in qualifying
2% Next £150k - £250k -Max investment - £1m = £300k reducer SEIS shares Max exemption 50% of the lower of
5% Next £250k and above -CGT exempt if held for 3 years gain amount and amount reinvested (max £50K)
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