ACCA - Taxation - A complete course

Introduce the principles of income tax, bases of assessment, and the calculation of taxable income, including personal allowance, residency, and income classifications (non-saving, saving, dividend).

This lecture explains marriage allowance transfer of a fixed personal allowance between spouses. It details a 10 percent transfer up to 1250, reducing the recipient’s tax by up to 250.

Determine UK tax residency by applying automatic non-UK and automatic UK residency tests, plus five ties and day counts, to decide worldwide income taxation.

Learn how investment income is taxed—saving, non saving, and dividend income—with nil rate bands and starting rates, plus ISA tax advantages.

Explore the accrued income scheme that prevents bond washing and shows how accrued interest affects selling price and tax, plus how spouses optimize taxation through allowance transfers.

Explore property income taxation for individuals, covering cash basis default, optional accrual basis, and the aggregation and special rules for furnished holiday lettings and rent-a-room relief.

Explain the tax treatment of employment income, including employment vs self-employment, deductible expenses, travel and mileage allowances, and exempt and taxable employee benefits.

Explain how to calculate employee taxable benefits for company cars and related perks—private fuel, pool cars, vans, loans, and mobile phones—using list price and CO2 based percentages.

Explore types of registered pension schemes, including occupational and personal schemes, and learn tax relief mechanisms, contribution limits, and lifetime allowance rules.

Assess how accounting profits become tax adjusted trading profits for unincorporated traders by applying badges of trade, basis of trade, and current year accrual adjustments.

Learn how to identify disallowed expenditures, apply remoteness and dual-principal tests, allocate business vs personal use, and adjust for capital vs revenue expenses in tax calculations.

Explore capital allowances on land and machinery, including qualifying expenditure, the depreciation substitute, and the functional test for plant and machinery under UK tax rules.

Master calculating capital allowances for plant and machinery using main and special pools, including annual investment allowance, first-year low-emission car relief, WDA, disposals, and private-use rules.

Explain basis of assessment for sole traders, allocating tax adjusted trading profits to the tax year using ongoing rules and caib, including overlapping profits in opening, second, and final years.

Explore how partnerships, as unincorporated entities, face taxation like individuals, with profits taxed to each partner, allocations of salaries and interest on capital, and profit-sharing ratios, plus capital allowances treatment.

Analyze commencement season in partnerships, detailing admission and retirement of partners, changes in profit sharing, opening and closing year rules, and handling overlapping profits for tax purposes.