F6 ★ K҉A҉P҉‎•L҉A҉N҉ ★ Taxation (TX) - STUDY TEXT and REVISION KIT

The 'Taxation' paper introduces candidates to taxation and provides a foundational understanding of the underlying principles and major technical areas of taxation as they apply to individual and business activities.

If you have a Taxation (TX) exam coming up, are thinking about enrolling, or want to retake it, keep reading.

Before we begin, it's important to note that there are numerous ACCA Taxation papers available, such as the UK paper, the Ireland paper, the Malaysian paper, and so on.

These are specific to the country you are studying in as well as the applicable tax laws. In this guide, we'll refer to the TX-UK Paper, but the advice applies to all tax students.

You can choose the exam you want to take based on the country and tax laws that are most relevant to your profession. More details about the ACCA variant exams can be found here.


The Taxation syllabus is intended to introduce you to the tax system and give you a basic understanding of the underlying principles and technical areas, as well as how they affect individual and business activities.

The syllabus covers a wide range of taxes that an accountant must be well-versed in. Calculating tax liabilities, explaining calculations, adhering to regulations, and planning for businesses and individuals in a variety of scenarios are all part of the job.

Taxation is an ACCA applied skills subject, and the skills you'll learn here will help you succeed later on in the Strategic Professional subject Advanced Taxation (if you choose it).

As a result, it is critical to lay a solid foundation of knowledge while studying for the TX course.

TX Exam Format

The Applied Skills papers follow the same format. Computer Based Exams (CBEs) are used to grade them all, and you have three hours to complete the exam after reading the CBE instructions for up to ten minutes. This exam, like all others in the ACCA qualification, has a pass mark of 50%.

The TX exam is divided into three sections, each with its own set of required questions. These are broken down as follows:
  • Section A contains 15 Objective Test (OT) questions worth two points each, for a total of 30 points. These may be drawn from any subject on the curriculum.
  • Section B contains three OT Case Scenarios, each with five two-point questions for a total of 30 points. These can come from any subject matter.

This means that 60% of the paper can come from any topic on the syllabus, so failing to cover the entire course may cost you a lot of points on the exam.

Consider this: if you fail to cover a topic that appears in five different questions in an OT Case Scenario, you risk losing ten points right away – not a good way to start the exam!

  • Section C: This section contains one 10-point question and two 15-point questions. These questions will usually necessitate the application of a scenario and will include a combination of calculations, explanations, and discussion.

Syllabus Guide

As previously stated, the goal of the Taxation syllabus is to develop knowledge and skills related to the tax system and be able to apply them to individuals, single companies, and groups of companies.

In order to achieve this goal, the ACCA outlines six main capabilities that candidates should be able to do after passing this exam:
  1. Explain the operation and scope of the tax system, as well as the obligations of taxpayers and/or their agents and the consequences of noncompliance.
  2. Explain and calculate personal income tax liabilities, as well as the impact of national insurance contributions (NIC) on employees, employers, and self-employed individuals.
  3. Explain and calculate the chargeable gains that result from the actions of individuals.
  4. The inheritance tax liabilities of individuals are explained and computed.
  5. Explain and calculate the tax liabilities of individuals and groups of individuals.
  6. Explain and calculate how VAT affects both incorporated and unincorporated businesses.

Taxation Exam Study Tips

#1 – Give yourself 12 weeks to prepare

The Applied Skill level exams require a deeper understanding of the content in order to tailor your knowledge to different scenarios.

To improve your application skills, we recommend devoting a full 12-week study cycle to it.

This allows you to follow our recommended study plan, which includes 8 weeks of content review and learning through question walkthroughs, allowing you to complete the entire syllabus as noted above; and 4 weeks of exam technique practice via our mock exams, exam preparation resources, webinars, and Revision Bootcamp.

A well-organized study plan will provide you with a solid foundation of knowledge as well as excellent exam technique, increasing your chances of passing the exam.

#2 – Cover the full syllabus

According to the examiner, the two 15-mark constructed response questions will be about income tax and corporation tax, so make sure you are particularly strong in these areas. These are also included in the OT questions.

However, income tax and corporation tax alone will not get you a pass because the exam is all compulsory questions and sections A and B, as well as the ten-mark question section C, can come from any area of the syllabus; thus, broad knowledge is required for success.

To give yourself the best chance, practice questions from a variety of topics, as this will provide you with the most solid foundation of knowledge to tackle whatever exam you are given on the day.

#3 – Don’t ignore the OT’s

As previously stated, the OTs account for 60% of the exam, making passing impossible without performing well in this section. This type of question requires a thorough understanding of the material as well as a large number of practice questions.

Fortunately, we've included practice questions after each video to ensure your comprehension. Even if you're practicing longer form questions, be aware of the technical aspects of the solution as these may lead to OT questions.

Always carefully read the OTs requirements and consider the format in which your answer must be presented, especially if calculations are involved. Try practicing OT questions and Cases under time constraints to simulate the exam experience.

#4 Practice makes perfect

There is no getting around the fact that practicing questions is the only way to grasp new concepts in the TX syllabus.

As a result, practice, practice, practice should be the foundation of your education. It is the only way to understand the underlying principles and technical aspects of the various taxes, as well as apply them using the scenario's key data.

Tax calculations frequently use a Pro-forma template, so becoming familiar with it will make approaching calculations much easier. If the structure and layout are good, the marker will be able to see how a figure from the workings fits into the main calculations more easily.

Keep in mind any other information you need to provide alongside the company, such as payment deadlines or late payment penalties, potential exemptions or reliefs, or any other planning considerations.

Don't be discouraged if this appears difficult at first; remember that you learn more from your mistakes than your successes, so if you struggled with a question, review the solution, go back and review the content as needed, and then try the question again to see if you understand what was required. If you keep approaching questions in this manner, you will gain a solid understanding of both the content and how it is evaluated.

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