TAX08005 2022 Taxation 2

Identity transactions which give rise to a disposal for CGT purposes, prepare CGT computations and discuss reliefs that may be available.

Explain the major differences between income tax and corporation tax. Calculate the taxable profits and tax liability of a company, and explain and compute reliefs available to companies/groups of companies

Explain when a charge to VAT arises, identify the appropriate VAT rates in various scenarios, and calculate a basic VAT liability for an accountable person.

Identify the dues dates for payment of CGT, CT, VAT and for filing of the appropriate returns along with consequences for non-compliance.

This module will be delivered through a combination of lectures and practical tutorials.

This subject will be assessed through a continuous assessment during the term and a final written exam. The final written exam will be supervised in person or via online proctoring.

Repeat assessments will be developed in accordance with the requirements of the module.

LO1: Identity transactions that give rise to a disposal for CGT purposes, prepare CGT computations and discuss reliefs that may be available.

• The charge to CGT, disposal of an asset, the timing of disposal, chargeable/non-chargeable assets, chargeable persons, territorial scope of CGT, connected persons and married persons
• Calculation of CGT: consideration and acquisition costs, treatment of incidental costs, indexation relief, enhancement expenditure, part disposals, use of capital losses, and non-wasting chattels
• Advanced computational issues, for example, development Land, and share identification rules
• CGT reliefs including principal private residence relief, and retirement relief

LO2: Explain the major differences between income tax and corporation tax (CT). Calculate the taxable profits and tax liability of a company and explain and compute reliefs available to companies/groups of companies.

• The system of CT, scope and territoriality of CT, factors which determine company residence
• Major differences between income and CT
• Calculating taxable profits and tax thereon
• Understanding and use of Case I/II losses, trade and non-trade charges, order of set-off of trading losses, non-trade losses, restriction of losses on late filing
• Close company definitions, impact on individuals and companies, and calculation of surcharges

LO3: Explain when a charge to VAT arises, identify the appropriate VAT rates in various scenarios, and calculate a basic VAT liability for an accountable person.

• Charge to VAT, supply of goods and services, different rates of VAT, accountable and taxable persons
• Input and output VAT, liability/refund position

LO4: Identify the dues dates for payment of CGT, CT, VAT and for filing of the appropriate returns along with consequences for non-compliance.

• Pay and file obligations
• Interest on late and underpayments of tax
• Surcharges for late filing