EXAMINABLE DOCUMENTS – Exams in June 2024 to March 2025

Advanced Taxation – United Kingdom (ATX-UK)

The following notes refer to Advanced Taxation – United Kingdom (ATX-UK) only. Guidance
for other ATX variant exams – where available – is published on the ACCA website.
In view of the significance of Taxation-United Kingdom (TX-UK) in terms of underpinning
key parts of the ATX-UK syllabus, candidates should also refer to the separate guidance
which is published on the ACCA website with respect to TX-UK and in particular to the
articles mentioned therein. These should be used to recap on many of the technical issues
which are also fundamental to ATX-UK.
Examinations falling within the period 1 June to 31 March generally examine the Finance
Act which was passed in the previous year. Exams falling in the period 1 June 2024 to 31
March 2025 will examine the Finance Act 2023 (which received Royal Assent on 10 January
2023). The Finance (No. 2) Act 2023 did not receive Royal Assent by the exam cut-off date
of 31 May 2023, and is therefore not examinable as regards exams falling in the period 1
June 2024 to 31 March 2025.

Finance Acts
The latest Finance Act which will be examined in ATX-UK in examinations falling within the
period 1 June 2024 to 31 March 2025 is the Finance Act 2023.
With regard to prospective legislation where, for example, provisions included in the Finance
Acts will only take effect at some date in the future, such legislation will not normally be
examined until such time as it actually takes effect. The same rule applies to the effective
date of the provisions of an Act introduced by statutory instrument.
Articles
The following relevant articles have been published in Student Accountant and are also
available on the ACCA website:
• Finance Act 2023
• Examiner’s approach to Advanced Taxation – United Kingdom (ATX-UK)
• Stepping up from TX-UK to ATX-UK
• Passing the ATX-UK exam
• Guidance on answering Section A questions for ATX-UK
• Improving your performance in ATX-UK – in 5 parts
• Exam technique and fundamental technical issues for ATX-UK
• ATX-UK – A guide to using the examiner’s reports
• ATX-UK – A guide to reflection for retake students

The following articles are updated each year for changes in the Finance Act
• Trusts and tax for ATX-UK – in 3 parts
• Inheritance tax and capital gains tax for ATX-UK – in 4 parts
• International aspects of personal taxation for ATX-UK – in 4 parts
• Corporation tax for ATX-UK – in 4 parts
• Corporation tax– group relief for ATX-UK – in 4 parts
• Corporation tax – groups and chargeable gains for ATX-UK – in 4 parts
• Taxation of the unincorporated business – the new business – in 4 parts
• Taxation of the unincorporated business – the existing business – in 4 parts
Supplementary Instructions and Tax Rates and Allowances
The following supplementary instructions and tax rates and allowances will be reproduced in
the ATX-UK exam for examinations in the period 1 June 2024 to 31 March 2025. In
addition, other specific information necessary for candidates to answer individual questions
will be given as part of the question.

SUPPLEMENTARY INSTRUCTIONS
1. You should assume that the tax rates and allowances for the tax year 2023/24 and for
the financial year to 31 March 2024 will continue to apply for the foreseeable future
unless you are instructed otherwise.
2. Calculations and workings need only be made to the nearest £.
3. All apportionments should be made to the nearest month.
4. All workings should be shown.

TAX RATES AND ALLOWANCES

The following tax rates and allowances are to be used in answering the questions.

Income tax
Normal Dividend
rates rates
Basic rate £1 − £37,700 20% 8.75%
Higher rate £37,701 − £125,140 40% 33.75%
Additional rate £125,141 and over 45% 39.35%

Savings income nil rate band ― Basic rate taxpayers £1,000

― Higher rate taxpayers £500
Dividend nil rate band £1,000

A starting rate of 0% applies to savings income where it falls within the first £5,000 of taxable
income.

Personal allowance

Personal allowance £12,570

Transferable amount £1,260
Income limit £100,000

Where adjusted net income is £125,140 or more, the personal allowance is reduced to zero.

Residence status

Days in UK Previously resident Not previously resident

Less than 16 Automatically not resident Automatically not resident
16 to 45 Resident if 4 UK ties (or more) Automatically not resident
46 to 90 Resident if 3 UK ties (or more) Resident if 4 UK ties
91 to 120 Resident if 2 UK ties (or more) Resident if 3 UK ties (or more)
121 to 182 Resident if 1 UK tie (or more) Resident if 2 UK ties (or more)
183 or more Automatically resident Automatically resident
 Remittance basis charge

UK resident for
Seven out of the last nine years £30,000
12 out of the last 14 years £60,000

Car benefit percentage

The relevant base level of CO2 emissions is 55 grams per kilometre.

The percentage rates applying to petrol cars (and diesel cars meeting the RDE2 standard)
with CO2 emissions up to this level are:

51 grams to 54 grams per kilometre 15%

55 grams per kilometre 16%

The percentage for electric cars with zero CO2 emissions is 2%.

For hybrid-electric cars with CO2 emissions between 1 and 50 grams per kilometre, the
electric range of the car is relevant:

130 miles or more 2%

70 to 129 miles 5%
40 to 69 miles 8%
30 to 39 miles 12%
Less than 30 miles 14%

Car fuel benefit

The base figure for calculating the car fuel benefit is £27,800.

Company van benefits

The company van benefit scale charge is £3,960, and the van fuel benefit is £757.
A van with zero CO2 emissions does not give rise to a benefit.

Individual savings accounts (ISAs)

The overall investment limit is £20,000.

Rent-a-room relief

The rent-a-room relief limit is £7,500.

 Pension scheme limits

Annual allowance £40,000

Minimum allowance £4,000
Threshold income limit £200,000
Income limit £240,000

Lifetime allowance £1,073,100

The maximum contribution which can qualify for tax relief without any earnings is £3,600.

Approved mileage allowances: cars

Up to 10,000 miles 45p

Over 10,000 miles 25p

Capital allowances: rates of allowance

Plant and machinery

Main pool 18%
Special rate pool 6%

Cars
New cars with zero CO2 emissions 100%
Second-hand cars with zero CO2 emissions 18%
CO2 emissions between 1 and 50 grams per kilometre 18%
CO2 emissions over 50 grams per kilometre 6%

Annual investment allowance

Rate of allowance 100%
Expenditure limit £1,000,000

Structures and buildings allowance

Straight line allowance 3%

Cash basis accounting

Revenue limit £150,000

Cap on income tax reliefs

Unless otherwise restricted, reliefs are capped at the higher of £50,000 or 25% of income.
 Corporation tax

Financial year 2021 2022 2023

Small profits rate N/A N/A 19%

Main rate 19% 19% 25%

Lower limit N/A N/A £50,000

Upper limit N/A N/A £250,000

Standard fraction N/A N/A 3/200

Marginal relief
(Upper limit – Augmented profits) x Standard fraction x Taxable total profits
Augmented profits

Quarterly instalments
Profit threshold £1,500,000

Value added tax (VAT)

Standard rate 20%

Registration limit £85,000
Deregistration limit £83,000

Penalties for late VAT payments

Days late Penalty

Up to 15 days None
16 to 30 days 2%
More than 30 days 4% plus a 4% daily penalty

Inheritance tax: nil rate bands and tax rates

Nil rate band £325,000

Residence nil rate band £175,000

Rate of tax on excess over nil rate band – Lifetime rate 20%
– Death rate 40%

Inheritance tax: taper relief

Years before death Percentage

reduction
More than 3 but less than 4 years 20%
More than 4 but less than 5 years 40%
More than 5 but less than 6 years 60%
More than 6 but less than 7 years 80%
 Capital gains tax: tax rates

Normal Residential
rates property

Lower rate 10% 18%

Higher rate 20% 28%

Annual exempt amount £6,000

Capital gains tax: business asset disposal relief and investors’ relief

Lifetime limit – business asset disposal relief £1,000,000

investors’ relief £10,000,000
Rate of tax 10%

National insurance contributions

Class 1 Employee £1 − £12,570 per year Nil

£12,571 − £50,270 per year 12%
£50,271 and above per year 2%

Class 1 Employer £1 − £9,100 per year Nil

£9,101 and above per year 13.8%
Employment allowance £5,000

Class 1A 13.8%

Class 2 £3.45 per week

Lower profits limit £12,570

Class 4 £1 − £12,570 per year Nil

£12,571 − £50,270 per year 9%
£50,271 and above per year 2%

Rates of interest (assumed)

Official rate of interest 2.25%

Rate of interest on underpaid tax 6.50%
Rate of interest on overpaid tax 3.00%

Standard penalties for errors

Taxpayer Maximum penalty Minimum penalty – Minimum penalty –

behaviour unprompted prompted
disclosure disclosure
Deliberate and 100% 30% 50%
concealed
Deliberate but not 70% 20% 35%
concealed
Careless 30% 0% 15%
 Stamp duty land tax on non-residential properties

Up to £150,000 0%
£150,001 − £250,000 2%
£250,001 and above 5%

Stamp duty

Shares 0.5%