Units of Assessment

Weighting Towards Module Mark (%)

 

2 Hour Examination Closed Book

70

Class Test Closed Book 50 minutes

30

Qualifying Condition(s) 

A weighted aggregated mark of 40% is required to pass the module.

This module is about preparing tax computations for incorporated businesses and completing the relevant tax returns. This module also covers the preparation of tax computations and the completing of relevant forms for self-employed individuals.

On successful completion of the module Students will be able to:

• Prepare capital allowances computations for all business types

   

• Prepare assessable business income computations for partnerships and self employed individuals

   

• Prepare corporation tax computations for resident companies

   

• Prepare capital gains computations

   

• Show an understanding of current tax law and HMRC (Her Majesty’s Revenue & Customs) practice and make submissions within statutory timescales.

   

• Capital Allowances: Classification of expenditure on capital assets in accordance with the statutory distinction between capital & revenue expenditure.

   

·               Computing assessable business income: Adjustment of trading profits and losses for tax purposes. Application of the basis of assessment for unincorporated businesses in the opening and closing years.

·               Preparing Capital Gains Computations: Valuation of any chargeable assets disposed of or partly disposed of including shares, share pools, bonus issues & rights issues. Calculation of chargeable gains and allowable losses.

• Corporation Tax Computations: Entering adjusted trading profits and losses, capital allowances, investment income, capital gains, loss reliefs and charges. Dealing with Associated companies. Calculating corporation tax due including marginal relief.  

   

The teaching and learning methods include the use of weekly two-hour tutorials to illustrate the theory and allow the student to practice the practical application of such theory with a range of weekly tutorial questions.

Lecture material will be supported by directed reading and weekly homework exercises will be set to test students’ understanding on an on-going basis.

U-learn will be used as an information portal and will contain lecture notes, practical exercises and model answers plus past exam papers and model answers.

Individual feedback will be given in tutorial on the class test and general feedback will be posted on U-learn.

Assessment Strategy:

The initial focus of the module is incorporated businesses. Weekly tutorial and homework questions will build a students confidence to tackle individual components of a corporation tax computation: capital allowances, assessable trading income and capital gains.

As the course progresses students will see how all the individual components are pulled together in a corporation tax computation and how the actual tax is calculated. Students will then understand the process and procedures required to produce such a computation.

At this stage the students will be ready for the class test to demonstrate their understanding and experience all the elements that comprise an examination type question.

Following the class test, the focus will be on unincorporated businesses. As the students will already understand the process used for incorporated businesses this will benefit them when learning how to approach unincorporated businesses, as the process is essentially the same even though the rules to be applied are different.

Having completed computations for both incorporated and unincorporated businesses the student will be in a position to sit the final examination.