ACA Syllabus and

Technical Knowledge Grids

Professional Level
Tax Compliance
FOR EXAMS IN 2020
Contents
THE ACA QUALIFICATION: FRAMEWORK 3

ACA syllabus 7
Skills progression through the ACA qualification  9

PROFESSIONAL LEVEL 13

Tax Compliance  14

TECHNICAL KNOWLEDGE 21

Ethics Codes and Standards 22

Taxation23
The ACA qualification: framework
The ICAEW chartered accountancy qualification, The components are:
the ACA, is one of the most advanced learning
• Professional development
and professional development programmes
available. Its integrated components • Ethics and professional scepticism
provide an in-depth understanding across • Three to five years' practical work experience
accountancy, finance and business. Combined, • 15 accountancy, finance and business exams
these components help build the technical ICAEW constantly reviews the content of the
knowledge, professional skills and practical ACA qualification to reflect real life trends and
experience needed to become an ICAEW advances in technology. We work closely with
Chartered Accountant. employers, tuition providers, academics and
Each component is designed to complement examiners to ensure that the updates equip the
each other, which means that students can put chartered accountants of the future with the
theory into practice and can understand and skills and knowledge they need to be successful.
apply what they learn to their day-to-day work.

THE ACA QUALIFICATION AND TECHNOLOGY

Rapid growth in technology has automated many compliance elements of accountancy. But, with
technology also comes complexity and risk. Accountants need to adapt and develop new skills to
manage these technological changes such as data analytics, automation and cyber security.

DATA ANALYTICS AUTOMATION CYBER SECURITY

Recent advances in the way As technology continues to Cyber threats are a growing
that data is captured, develop, the automation of risk to businesses, and cyber
processed, stored and many traditional elements security is now part of the
communicated have of accountancy has day job for accountant.
fundamentally transformed fundamentally changed the Accountants and other
not just business processes, way in which business is financial institutions are
but also the ways in which done. But, while technology particularly attractive to
companies do business. can provide information cyber criminals. Cybercrime
Technology can provide more quickly and often more presents a fundamental
information more quickly and accurately than humans, it threat to the integrity of
often more accurately than cannot replicate human financial information and the
humans, but it cannot intelligence and quality requirement of chartered
replicate human intelligence decision making. Together, accountants to safeguard
and quality decision making. this provides even greater assets. The ACA syllabus
Therefore, chartered opportunities for chartered continues to evolve to
accountants hold a key role accountants to use their reflect changes in
in data analytics, in validating professional skills to add cybercrime and cyber
the source of the data, value to their clients and/or security as cyber criminals
interpreting and analysing the businesses in which and technology become
the outputs. they work. more sophisticated.

The continuing evolution of the ACA qualification will embrace change in technology to equip future
professionals with these key skills.

© ICAEW 2019 3
PROFESSIONAL DEVELOPMENT ETHICS AND PROFESSIONAL
The ICAEW chartered accountancy qualification, SCEPTICISM
the ACA, is one of the most advanced learning Ethics is more than just knowing the rules
and professional development programmes around integrity, objectivity, professional
available. Its integrated components provide competence and due care, confidentiality and
an in-depth understanding across accountancy, professional behaviour. It’s about identifying
finance and business. Combined, they help ethical dilemmas, understanding the
build the technical knowledge and professional implications, making judgements and behaving
skills and practical experience needed to appropriately as well as using professional
become an ICAEW Chartered Accountant. scepticism to build business trust. We integrate
ICAEW Chartered Accountants are known for ethics throughout the ACA qualification to
their professionalism and expertise. Professional develop students’ ethical capabilities to make
development prepares students to successfully suitable decisions.
handle a variety of different situations that they THREE TO FIVE YEARS’ PRACTICAL
encounter throughout their career. The ACA WORK EXPERIENCE
qualification improves students’ ability and
performance in seven key areas: Practical work experience is done as part
of a training agreement with an authorised
1. adding value training employer or principal. Students need
2. communication to complete 450 days, which normally takes
3. decision making between three and five years. The knowledge,
4. ethics and professionalism skills and experience they gain as part of their
training agreement are invaluable, giving them
5. problem solving the opportunity to put what they’re learning into
6. teamwork practice. Experience can be completed in at
7. technical competence. least one of the following six categories:
1. Accounting
2. Audit and assurance (audit is not
compulsory)
3. Financial management
4. Information technology
5. Insolvency
6. Taxation

15 ACCOUNTANCY, FINANCE AND

BUSINESS EXAMS
Students gain in-depth knowledge across a
broad range of topics in accountancy, finance
and business. The exams are designed to
complement their practical work experience,
so they constantly progress through the
qualification.
There are 15 exams over three levels –
Certificate, Professional and Advanced. They
can be taken in any order with the exception
of the Case Study which has to be attempted
last, within the final year of an ACA training
agreement and once all other exams have been
taken or received credit.

4 THE ACA QUALIFICATION: FRAMEWORK © ICAEW 2019

 Case Study

Advanced
Level
Strategic Business
Corporate Reporting
Management

Financial Accounting Business Strategy

Business Planning
and Reporting and Technology
Professional
Level
Audit and Assurance Tax Compliance Financial Management

Accounting Management Information Principles of Taxation

Certificate
Level
Business, Technology
Assurance Law
and Finance

CERTIFICATE LEVEL day-to-day work. The Business Planning and

There are six exams at this level that introduce Business Strategy and Technology exams in
the fundamentals of accountancy, finance and particular help students to progress to the
business. Students may be eligible for credit for Advanced Level.
some exams if they have studied a qualification Alternative exams are available for the Business
we recognise. Find out more at icaew.com/cpl. Planning and Financial Accounting and
These six exams are also available as a stand- Reporting modules.
alone certificate, the ICAEW Certificate in The Business Planning exams provide students
Finance, Accounting and Business (ICAEW with the opportunity to gain subject- and
CFAB) and as part of the ICAEW Level 4 sector-specific knowledge while studying for
Trailblazer in Accountancy. ICAEW CFAB and our the ACA. The suite of Business Planning exams
apprenticeship can serve as stepping stones to is based on the same syllabus structure and
the ACA qualification. skills frameworks, and will give students the
opportunity to demonstrate their learning and
PROFESSIONAL LEVEL use this in the context of taxation, banking or
The next six exams build on the fundamentals insurance. There are three to choose from –
and test students’ understanding and ability Business Planning: Taxation, Business Planning:
to use technical knowledge in real-life Banking, and Business Planning: Insurance.
scenarios. The exams can be taken in March, Students will need to sit one of the Business
June, September and December. Please note, Planning exams.
the Business Planning alternative exams for Alternative financial reporting exams are
banking and insurance are available at the June, also available for Financial Accounting and
September and December sittings. Reporting. Students can choose between two
Prescribed texts are permitted for Audit and different contexts, either UK GAAP or IFRS. This
Assurance, Finance Accounting and Reporting means that students can study the financial
and Tax Compliance, with open books permitted reporting framework most beneficial to their
for the Business Planning exams. employer and clients. Students will need to sit
one version of the Financial Accounting and
The Professional Level exams are flexible and Reporting exam.
can be taken in any order to fit with a student’s

© ICAEW 2019 5
ADVANCED LEVEL
The Corporate Reporting and Strategic Business
Management exams test students’ understanding
and strategic decision-making at a senior level.
They present real-life scenarios, with increased
complexity and implications from the Professional
Level exams.
The Case Study tests all the knowledge, skills and
experience gained so far. It presents a complex
business issue which challenges students’ ability
to problem solve, identify the ethical implications
and provide an effective solution.
The Advanced Level exams can be taken in July
and November. They are fully open book, so
they replicate a real-life scenario where all the
resources are at their fingertips.
An authorised training employer or principal
will guide their students on the exams which are
right for them. If a student is studying the ACA
independently, they should consider their future
ambitions when selecting which exams to sit.

6 THE ACA QUALIFICATION: FRAMEWORK © ICAEW 2019

ACA syllabus
This document presents the learning outcomes for each of the ACA exams. The learning outcomes
in each exam should be read in conjunction with the relevant technical knowledge grids and, where
applicable, the skills development grid.

UNDERSTANDING THE SYLLABUS FOR EACH MODULE

Each module has the following syllabus components

Module These are a series of abilities which trainees will possess once they complete
aims the learning and assessment for this particular module.

Each module aim creates a syllabus area of technical and skills-based

Specification learning. The specification grid assigns an assessment weighting to each
grid syllabus area, which indicates the proportion of learning represented by each
syllabus area in the exam.

Learning outcomes are detailed statements which identify what the learner
Learning will know and be able to do by the end of the module, and which will be
outcomes demonstrable on passing the exam.

The Technical Knowledge Grid shows the technical knowledge in the

disciplines of financial reporting, audit and assurance, business analysis, ethics
and taxation covered in the ACA syllabus by module. For each technical area,
Technical the level of knowledge required is indicated by a letter from A to D, as follows.
knowledge
• Level D – awareness of the scope of the standard
grid
• Level C – general knowledge with a basic understanding
• Level B – working knowledge with a broad understanding
• Level A – thorough knowledge with a solid understanding

ACA ASSESSMENT FLEXIBILITY

The six Certificate Level exams each have a There are no regulations stipulating the
1.5-hour exam, a 55% pass mark, and can be sat order in which students must attempt the
throughout the year at an ICAEW-approved test exams, allowing employers to design training
centre. programmes according to business needs. The
exception to this rule is the Case Study, which
The Professional Level module exams are
must be the last exam attempted and when a
2.5 hours long, except for Financial Accounting
student has entered their final year of training.
and Reporting which is 3 hours long. Each exam
has a 55% pass mark. Students will be permitted a maximum of four
attempts at each Certificate and Professional
There are three Advanced Level modules
Level exam, and unlimited attempts at the
examined. The Corporate Reporting and
Advanced Level exams.
Strategic Business Management exams are
3.5 hours long. The Case Study exam is 4 hours
long. Each has a 50% pass mark.
For more information, guidance and support on
computer-based exams, visit the exam resources
area on our website at icaew.com/cbe

© ICAEW 2019 7
CREDIT FOR PRIOR LEARNING (CPL) OPEN BOOK POLICY
Students with previous professional or academic For some Professional Level exams, students
qualifications may be eligible to apply for CPL are permitted to take certain publications into
for up to 12 modules at the Certificate and the exam. Details of these publications and our
Professional Levels. CPL is not available at the open book policy can be found at icaew.com/
Advanced Level. For more information, visit permitted texts
icaew.com/cpl
For the Professional Level Business Planning
alternative exams, and at the Advanced Level,
students are permitted to take any material into
the exam, subject to practical space restrictions.

SKILLS REQUIRED BY THE ACA QUALIFICATION

The following skills areas are present throughout the qualification.

SKILL OVERALL

Understand a business or accounting situation, prioritise by

Assimilating and
determining key drivers, issues and requirements and identify
using information
and relevant information.

Structuring Structure information from various sources into suitable formats for
problems and analysis and provide creative and pragmatic solutions in a business
solutions environment.

Apply professional scepticism and critical thinking to identify faults,

Applying
gaps, inconsistencies and interactions from a range of relevant
judgement
information sources and relate issues to a business environment.

Concluding, Apply technical knowledge, skills and experience to support

recommending reasoning and conclusion and formulate opinions, advice, plans,
and solutions, options and reservations based on valid evidence and
communicating communicate clearer in a manner suitable for the recipient.

8 THE ACA QUALIFICATION: FRAMEWORK © ICAEW 2019

Skills progression through the ACA
qualification
The level of skill required to pass each exam increases as ACA trainees progress upwards through each
Level of the ACA qualification. The skills progression embedded throughout the ACA qualification
ensures ACA trainees develop the knowledge and skills can successfully operate in the modern
workplace and which are expected by today’s forward thinking employers.

Certificate Level Professional Level Advanced Level

Financial
Accounting
Principles & Reporting, Business
Skills Assurance, Corporate
of Taxation, Audit & Planning
Business, Reporting and
Management Assurance, and Business Case Study
Technology & Strategic Business
Information, Financial Strategy &
Finance, Law Management
Accounting Management, Technology
Tax
Compliance

Assimilating and using information

Understanding Objective Objective Scenarios Complex scenarios Unstructured

the situation testing testing complex business
and the and simple scenarios
requirements scenarios

Identifying and Information as provided Single Several Multiple information Multiple

using relevant information information sources provided information
information source sources sources including
provided provided own research

Identifying and Issues given Issues included in scenarios Issues included in Issues included
prioritising key complex scenarios in unstructured
issues complex scenarios

Structuring problems and solutions

Structuring data Specified techniques Specified Techniques Techniques inferred Unspecified

techniques inferred by by nature of techniques
nature of problem
problem

Developing Highly Specified Specified problems Specified and Defined output

solutions specified problems implicit problems but unspecified
tasks problems

Applying judgement

Applying Objective testing Specified Specified Specified Underlying

professional requirement requirement requirement in requirement
scepticism and in simple in scenario complex scenario within complex
critical thinking scenario scenario

Relating issues Objective Objective Issues in scenarios Issues in complex Issues in complex,
to the broader testing testing scenarios unstructured
business and Issues scenarios
environment, in simple
including ethical scenarios
issues

© ICAEW 2019 9
 Certificate Level Professional Level Advanced Level

Financial
Accounting
Principles & Reporting, Business
Skills Assurance, Corporate
of Taxation, Audit & Planning
Business, Reporting and
Management Assurance, and Business Case Study
Technology & Strategic Business
Information, Financial Strategy &
Finance, Law Management
Accounting Management, Technology
Tax
Compliance

Concluding, recommending and communicating

Concluding and Objective Not assessed Specified conclusions and Specified Conclusions and
recommending testing recommendations in simple conclusions recommendations
scenarios and reasoned supported by own
recommendations evidence
in complex
scenarios

Communicating Prescribed exam format Exam requirements, Professional Professional report

including some professional presentations with appendices
presentation including reasoned
recommendations

PROFESSIONAL SKILLS ASSESSED IN THE ACA EXAMS

ASSIMILATING AND USING INFORMATION

Understand the situation and Identify and use relevant Identify and prioritise key
the requirements information issues and stay on task

• Demonstrate understanding • Interpret information • Identify business and

of the business context provided in various formats financial issues from a
• Recognise new and complex • Evaluate the relevance of scenario
ideas within a scenario information provided • Prioritise key issues
• Identify the needs of • Use multiple information • Work effectively within time
customers and clients sources constraints
• Explain different stakeholder • Filter information provided • Operate to a brief in a given
perspectives and interests to identify critical facts scenario
• Identify risks within a
scenario
• Identify elements of
uncertainty within a scenario
• Identify ethical issues
including public interest and
sustainability issues within a
scenario

10 THE ACA QUALIFICATION: FRAMEWORK © ICAEW 2019

STRUCTURING PROBLEMS AND SOLUTIONS

Structure data Develop solutions

• Structure information from various sources • Identify and apply relevant technical
into suitable formats for analysis knowledge and skills to analyse a specific
• Identify any information gaps problem
• Frame questions to clarify information • Use structured information to identify
evidence-based solutions
• Use a range of data types and sources to
inform analysis and decision-making • Identify creative and pragmatic solutions in a
business environment
• Structure and analyse financial and non-
financial data to enhance understanding of • Identify opportunities to add value
business issues and their underlying causes • Identify and anticipate problems that may
• Present analysis in accordance with result from a decision
instructions and criteria • Identify a range of possible solutions based
on analysis
• Identify ethical dimensions of possible
solutions
• Select appropriate courses of action using an
ethical framework
• Identify the solution which is the best fit with
acceptance criteria and objectives
• Define objectives and acceptance criteria for
solutions

APPLYING JUDGEMENT

Apply professional scepticism

Relate issues to the environment
and critical thinking

• Recognise bias and varying quality in data • Appreciate when more expert help is required
and evidence • Identify related issues in scenarios
• Identify assumptions or faults in arguments • Assess different stakeholder perspectives
• Identify gaps in evidence when evaluating options
• Identify inconsistencies and contradictory • Retain an overview of the business issue or
information scenario
• Assess interaction of information from • Appraise corporate responsibility and
different sources sustainability issues
• Exercise ethical judgement • Appraise the effects of alternative future
scenarios
• Appraise ethical, public interest and
regulatory issues

© ICAEW 2019 11
CONCLUDING, RECOMMENDING AND COMMUNICATING

Conclusions Recommendations Communication

• Apply technical knowledge • Present recommendations in • Present a basic or routine

to support reasoning and accordance with instructions memorandum or briefing
conclusions and defined criteria note in writing in a clear and
• Apply professional • Make recommendations in concise style
experience and evidence to situations where risks and • Present analysis and
support reasoning uncertainty exist recommendations in
• Use valid and different • Formulate opinions, advice, accordance with instructions
technical skills to formulate recommendations, plans, • Communicate clearly to a
opinions, advice, plans, solutions, options and specialist or non-specialist
solutions, options and reservations based on valid audience in a manner
reservations evidence suitable for the recipient
• Make evidence-based • Prepare the advice, report, or
recommendations which can notes required in a clear and
be justified by reference to concise style
supporting data and other
information
• Develop recommendations
which combine different
technical skills in a practical
situation

12 THE ACA QUALIFICATION: FRAMEWORK © ICAEW 2019

Professional Level
Tax Compliance
MODULE AIM TAXES COVERED IN THIS MODULE
To enable students in straightforward scenarios to: Capital gains tax
• prepare tax computations for individuals and Corporation tax
companies; Income tax
• understand the tax implications of a course Inheritance tax
of action; and
National insurance
• explain potential tax treatments of
transactions. Stamp taxes
On completion of this module, students will be VAT
able to:
METHOD OF ASSESSMENT
• recognise the ethical issues arising in the
course of performing tax work and identify The Tax Compliance module exam is 2.5 hours
the obligations the UK system of taxation long. The exam will consist of five questions.
imposes on taxpayers and the implications The exam will test each of the taxes on the
for taxpayers of non-compliance; syllabus as a discrete topic. Students may use
the permitted text(s) as detailed on the ICAEW
• calculate the amount of VAT owed by or
website; icaew.com/permittedtexts.
owed to businesses;
• calculate the amount of stamp taxes due in In the exam, students will generally be expected
straightforward transactions; to assume that any beneficial election, claim or
deduction has been made, unless otherwise
• calculate the capital gains tax payable by
directed in the exam.
individuals;
• calculate the amounts of inheritance tax due
ETHICS AND PROFESSIONAL
on lifetime transfers and transfers on death
SCEPTICISM
by individuals, personal representatives and
trustees; Ethical behaviour in tax compliance is
paramount. Students will be expected to apply
• calculate the corporation tax liabilities of
the ICAEW Code of Ethics and Professional
companies;
Conduct in Relation to Taxation. Appropriate
• calculate the amounts of income tax owed and trustworthy calculations, explanations and
by or owed to individuals; and tax planning must be provided, being mindful
• calculate the amounts of national insurance of tax avoidance and tax evasion. Professional
payable by individuals, businesses and scepticism will be critical in recognising bias and
companies. exercising judgement.

14 PROFESSIONAL LEVEL © ICAEW 2019

SPECIFICATION GRID
This grid shows the relative weightings of subjects within this module and should guide the relative
study time spent on each. Over time the marks available in the assessment will equate to the
weightings below, while slight variations may occur in individual assessments to enable suitably
rigorous questions to be set.

SYLLABUS AREA WEIGHTING

1 Ethics and law 5–10%

2 Indirect taxes 10–15%
3 Capital taxes 20–30%
4 Corporation tax 15–25%
5 Income tax and NIC 30–40%

This grid provides guidance on the relative weighting between knowledge and skills:

WEIGHTING

Knowledge 65–75%
Skills 25–35%

The following learning outcomes should be read in conjunction with the relevant sections of the
technical knowledge grids at the end of this document.

1 ETHICS AND LAW • money laundering

Students will be able to recognise ethical issues • tax planning, tax avoidance and tax
arising in the course of performing tax work and evasion;
identify the obligations the UK system of tax c. identify legal and ethical issues arising
imposes on taxpayers and the implications for from tax work undertaken and explain the
taxpayers of non-compliance. significance of these issues and suggest
In the assessment, students may be required to: appropriate actions or responses; and
a. identify the five fundamental principles and d. identify and explain to all stakeholders the
guidance given in the IESBA Code of Ethics implications of digital tax accounts on UK
for Professional Accountants and the ICAEW taxpayers.
Code of Ethics as well as other relevant 2 INDIRECT TAXES
guidance, including Professional Conduct in
Relation to Taxation (PCRT), in relation to a Students will be able to calculate the amount
tax practice with regard to: of VAT owed by or owed to businesses and
calculate the amount of stamp taxes due in
• the threats and safeguards framework straightforward transactions including when
• disclosure of information these amounts must be reported and paid.
• conflicts of interest In the assessment, students may be required to:
• confidentiality;
a. explain the VAT consequences of property
b. identify the law and the guidance in the transactions;
ICAEW Code of Ethics as well as other
relevant guidance, including Professional b. explain the VAT consequences of group
Conduct in Relation to Taxation (PCRT), with registration for VAT;
regard to: c. explain the VAT consequences of the option
• new client procedures to tax;
• regulatory requirements for tax practices d. explain and calculate the VAT consequences
of the capital goods scheme;
• HMRC errors

© ICAEW 2019 15
e. calculate the VAT due to or from HMRC for e. explain the principles of inheritance tax and
both wholly taxable and partially exempt identify the different classes of taxpayer
traders; liable to pay inheritance tax;
f. explain the VAT consequences of imports f. explain the impact of an individual’s domicile
and exports of goods and services to and and deemed domicile on their inheritance
from VAT registered and non-VAT registered tax liability;
persons within and outside the UK; g. explain when the lifetime transfer of an
g. explain the classification of supplies and the asset gives rise to an inheritance tax
distinction between goods and services; liability, calculate the inheritance tax
h. identify and explain the differing VAT payable on chargeable lifetime transfers in
treatment of single and multiple supplies; straightforward scenarios and state the due
date for payment;
i. identify common situations in which a
liability to UK land and stamp taxes, Stamp h. calculate the death tax due on lifetime
Duty Reserve Tax, and Stamp Duty arises; transfers and state the due date for payment;
j. identify situations where there is an i. calculate the value of an individual’s estate at
exemption from stamp taxes; death and the inheritance tax due and state
the due date for payment;
k. calculate the amount of stamp taxes due in
straightforward transactions; j. describe the circumstances in which the
following inheritance tax reliefs apply and
l. determine due dates for stamp taxes returns;
calculate the amount of relief available in a
and
given situation:
m. calculate the interest and penalties due in
• fall in value relief
respect of late payment of stamp taxes.
• agricultural property relief
3 CAPITAL TAXES • business property relief
Students will be able to calculate the capital • quick succession relief
gains tax payable by individuals. Students
• taper relief;
will also be able to calculate the amounts of
inheritance tax due on lifetime transfers and k. determine, in straightforward cases, due
transfers on death by individuals, personal dates for inheritance tax returns; and
representatives and trustees, including when l. calculate the interest and penalties due in
these amounts must be reported and paid. respect of late payment of inheritance tax.
In the assessment, students may be required to: 4 CORPORATION TAX
a. calculate the chargeable gains and losses Students will be able to calculate the
on assets, including chattels, and shares and corporation tax liabilities of companies,
securities; including when these liabilities must be
b. describe the circumstances in which the reported and paid.
following reliefs apply and calculate the In the assessment, students may be required to:
effect of full or partial relief available in a
given situation: a. explain the relevance of the distinction
between revenue and capital for both
• letting relief
receipts and expenses and apply the
• principal private residence relief distinction in a given scenario;
• gift relief b. recognise the effect on trading profits of the
• rollover relief treatment of:
• entrepreneurs’ relief; • provisions
c. explain the impact of an individual’s • capitalised revenue expenditure
residence, domicile and deemed domicile • intangible assets;
on their capital gains tax liability;
c. calculate trading profits or losses after
d. calculate total taxable gains and tax payable adjustments and allowable deductions
thereon, using available reliefs and losses to (including capital allowances on plant and
reduce the liability, including the computation machinery);
of double tax relief where appropriate;

16 PROFESSIONAL LEVEL © ICAEW 2019

d. calculate the chargeable gains and losses UNINCORPORATED BUSINESSES
on assets, including chattels and shares and d. calculate the assessable trading profits or
securities; losses of a partnership including after a
e. describe the circumstances in which rollover change in the profit sharing ratio or change
relief applies and calculate the effect of full in partners, and allocate the profits or losses
or partial relief available in a given situation; to each partner including the allocation of
f. recognise the effect of the following issues notional profits and losses;
on corporation tax payable: e. calculate the assessable trading profits or
• having a period of account less than or losses for a new unincorporated business
more than 12 months in length and identify the overlap profits on the
commencement of trade;
• having one or more related 51% group
f. calculate the assessable trading profits or
companies
losses for a continuing business;
• being a member of a group;
g. calculate the final assessable trading profits
g. explain and illustrate how losses may be or losses for an unincorporated business
used effectively by a company or group; ceasing to trade;
h. calculate the taxable total profit and the h. calculate the assessable trading profits or
tax payable or repayable for companies losses of a continuing business following a
including using losses to reduce the tax change in accounting date;
liability and the computation of double tax
i. explain and illustrate the possible uses
relief where appropriate; and
of trading losses in a new or continuing
i. identify the key features of the self- business or a business ceasing to trade;
assessment system for companies,
determine due dates for returns, payments TAXATION OF INCOME
and payments on account, and calculate j. calculate assessable employment income
the interest and penalties due for late for an employee or director, taking into
submissions of returns, incorrect returns and account expenses, allowable deductions and
late or incorrect payments of tax. assessable benefits;
k. calculate taxable savings, income from
5 INCOME TAX AND NIC
property, dividend income, taxed income
Students will be able to calculate the amounts and investment income;
of income tax owed by or owed to individuals l. describe and calculate the principal aspects
as well as the amounts of national insurance of the taxation of property income, including
payable by employers, the self-employed and interest relief, rent-a-room relief, and the
employees, including when these amounts must application of the cash basis;
be reported.
m. explain the alternative ways in which an
In the assessment, students may be required to: individual can provide for retirement and
calculate the tax relief available;
TRADING PROFITS n. explain the impact of an individual’s
a. explain the relevance of the distinction residence, domicile and deemed domicile;
between revenue and capital for both o. calculate total taxable income and the
receipts and expenses and apply the income tax payable or repayable for
distinction in a given scenario; employees, company directors, partners
b. recognise the effect on trading profits of the and self-employed individuals including
treatment of: the computation of double tax relief where
• provisions appropriate and payments under the self-
assessment system; and
• capitalised revenue expenditure
• intangible assets;
c. calculate trading profits or losses after
adjustments and allowable deductions
(including capital allowances on plant and
machinery) using either the accruals basis or
cash basis of accounting;

© ICAEW 2019 17
p. identify the key features of the self-
assessment system for individuals,
determine due dates for returns, payments,
and payments on account, and calculate
the interest and penalties due for late
submissions of returns, incorrect returns and
late or incorrect payments of tax.

NATIONAL INSURANCE CONTRIBUTIONS

Students will be able to calculate the amounts
of national insurance payable by individuals,
businesses and companies.
In the assessment, students may be required to:
q. identify the different classes of national
insurance contributions;
r. calculate the national insurance due on
employment income and the assessable
trading profits of the self-employed;
s. recognise when the annual maxima rules
for the payment of national insurance
contributions apply; and
t. calculate the total national insurance
contributions payable by employees,
employers and self-employed individuals.

18 PROFESSIONAL LEVEL © ICAEW 2019

SKILLS ASSESSED

ASSIMILATING AND USING INFORMATION

Understand the situation and Identify and use relevant Identify and prioritise key
the requirements information issues and stay on task

• Identify ethical issues in a • Interpret information • Work effectively within time

given scenario provided in various formats constraints
• Evaluate the relevance and • Operate to a brief in a given
accuracy of information scenario
provided
• Filter information provided
to identify critical facts

HOW SKILLS ARE ASSESSED:

students may be required to:
• explain the implications of proposed transactions in any of the following ways:
–– calculation of tax liabilities and reliefs available;
–– written description of tax treatments;
–– explanation of tax treatments in light of unstructured information relating to individuals,
partnerships or companies;
–– description of the availability and values of tax reliefs within the context of numerical questions;
–– explanation of alternative tax treatments; and
–– explanation of ethical issues within given scenarios.

STRUCTURING PROBLEMS AND SOLUTIONS

Structure data Develop solutions

• Present analysis in • Identify and apply relevant technical knowledge and skills to
accordance with instructions analyse a specific problem
and criteria • Use structured information to identify evidence-based solutions
• Select appropriate courses of action using an ethical framework

HOW SKILLS ARE ASSESSED:

students may be required to:
• calculate tax liabilities from a given scenario;
• demonstrate relevant technical knowledge;
• perform relevant, accurate calculations in a logically structured way;
• identify different business entities and their tax status (eg, company, sole trader, partnership), and
understand the tax implications thereof;
• integrate verbal descriptions with calculations;
• use calculations to illustrate an answer; and
• provide relevant legal and ethical information in the context of a tax scenario.

© ICAEW 2019 19
APPLYING JUDGEMENT

Apply professional scepticism and critical thinking

• Recognise bias and varying quality in data and evidence

• Identify faults in computations and arguments
• Exercise ethical judgement

HOW SKILLS ARE ASSESSED:

students may be required to:
• critically evaluate the quality, completeness and integrity of information put forward by tax payers;
• assess the legality of options and the consequences of various courses of action with regard to:
–– new client procedures;
–– HMRC errors;
–– money laundering;
–– tax planning, tax avoidance and tax evasion.

CONCLUDING RECOMMENDING AND COMMUNICATING

Conclusions Communication

• Apply technical knowledge • Present analysis and recommendations in accordance with

to support reasoning and instructions
conclusions • Prepare the advice, report, or notes required in a clear and
concise style

HOW SKILLS ARE ASSESSED:

students may be required to:
• analyse the implications of various courses of action out of a limited set of prescribed options;
• determine the tax implications of scenarios and proposals to provide alternative tax implications;
• take a given set of circumstances and reach a reasoned conclusion;
• justify a conclusion made using knowledge of the existing tax regime;
• show an illustrative example of possible VAT treatments eg with regard to transactions involving
land and buildings;
• show an illustrative example of inheritance tax implications of a proposed lifetime transfer or a
transfer on death;
• show an illustrative example of the impact of residency status on income tax, capital gains tax or
corporation tax; or
• show an illustrative example of whether an individual is trading by applying the badges of trade to
reach a reasoned conclusion.

20 PROFESSIONAL LEVEL © ICAEW 2019

Technical knowledge
The tables contained in this section show the technical knowledge in the disciplines of financial
reporting, audit and assurance, business analysis, ethics and taxation covered in the ACA syllabus by
module.
For each individual standard the level of knowledge required in the relevant Certificate and
Professional Level module and at the Advanced Level is shown.
The knowledge levels are defined as follows:

LEVEL D
An awareness of the scope of the standard.

LEVEL C
A general knowledge with a basic understanding of the subject matter and training in its application
thereof sufficient to identify significant issues and evaluate their potential implications or impact.

LEVEL B
A working knowledge with a broad understanding of the subject matter and a level of experience in
the application thereof sufficient to apply the subject matter in straightforward circumstances.

LEVEL A
A thorough knowledge with a solid understanding of the subject matter and experience in the
application thereof sufficient to exercise reasonable professional judgement in the application of the
subject matter in those circumstances generally encountered by chartered accountants.

KEY TO OTHER SYMBOLS:

→ The knowledge level reached is assumed to be continued

© ICAEW 2019 21
Ethics Codes and Standards
ETHICS CODES AND STANDARDS LEVEL MODULES

IESBA Code of Ethics for Professional Accountants Certificate Level

(parts A, B and C and Definitions) C/D Accounting
B Assurance
ICAEW Code of Ethics C/D Business, Technology and Finance
D Law
C Management Information
C Principles of Taxation

Professional Level
A Audit and Assurance
B Business Strategy and Technology
B Financial Accounting and Reporting
B/C Financial Management
B Tax Compliance
B Business Planning

Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study

FRC Revised Ethical Standard (2016) B Assurance

A Audit and Assurance

Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study

22 TECHNICAL KNOWLEDGE © ICAEW 2019

Taxation
CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

LEGAL AND ETHICAL FRAMEWORK

Anti-money laundering guidance C B A
Base erosion and profit-shifting (BEPS) project C
Disclosure of tax avoidance schemes (DOTAS) A
Extent of tax legislation to England, Wales, Scotland & Northern
C B
Ireland
General anti-abuse rule A
HMRC B → →
Objectives of taxation C → →
Professional Conduct in Relation to Taxation (PCRT) C B
Tax planning, evasion and avoidance C B A
ADMINISTRATION
Administration B → →
Appeals C → →
Apprenticeship levy C →
Digital accounts B → →
PAYE/NIC B → →
Payments B A →
Penalties and interest B → →
Self-assessment B A →
CAPITAL GAINS TAX
Chargeable gains
Annual exempt amount B A →
Capital gains tax for trusts C
Chargeable assets C B →
Chargeable disposals C B →
Chargeable persons C B →
Chattels: wasting and non-wasting B → →
Connected persons A →
Converted trading losses B →
Costs of acquisition and disposal C B →
Leases A
Nil gain/nil loss transfers A →
Part disposals B →
Qualifying corporate bonds B →
Rate of tax B A →
Relief for capital losses A A
Reorganisations and reconstructions A
Shares and securities (including bonus and rights issues) B →
Chargeable gains reliefs
Entrepreneurs’ relief B A
Gift relief B A
Incorporation relief A
Letting relief A →

© ICAEW 2019 23
 CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

Principal private residence relief A →

Reinvestment relief under EIS/SEIS B
Roll-over relief B A
Overseas aspects of capital gains tax
Arising basis B A
Deemed domicile B A
Domicile B A
Double tax relief A →
Gains on foreign assets B A
Remittance basis B A
Residence C A
Temporary absence A
UK taxation of non-domiciled individuals B A
INCOME TAX
Trading profits
Adjustments to profits B A →
Badges of trade B A →
Capital allowances B A →
Cash basis of accounting B A →
Foreign currency transactions A
Pension contributions A →
Pre-trading expenditure A →
Patent royalties B
Owner-managed businesses
Basis of assessment – current year basis B A →
Change of accounting date A →
Commencement and cessation of trade B A →
Overlap profits B A →
Partnerships B A →
Trading losses A →
Treatment of opening year losses A →
Treatment of terminal losses A →
Employment income
Allowable deductions against employment income A →
Employment income B A →
Share schemes A
Statutory Mileage Rates Scheme A →
Taxable and exempt benefits B A →
Termination payments B
Other income/expenditure
Dividends from UK companies B A →
Enterprise Investment Scheme B
Investment income B A →
ISAs B → →
Miscellaneous income A →
Property income C B A

24 TECHNICAL KNOWLEDGE © ICAEW 2019

 CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

Savings income B A →
Seed Enterprise Investment Scheme B
Venture Capital Trusts B
Overseas aspects of income tax
Arising basis B A
Deemed domicile C A
Domicile C A
Double tax relief A →
Income on foreign assets and income from foreign employment B A
Remittance basis B A
Residence C A
UK taxation of non-domiciled individuals B A
Income tax computation
Exempt income B A →
Gifts of assets and cash to charity B A →
Income tax liability and income tax payable B A →
Income tax charge on child benefit B →
Independent taxation and jointly owned assets B A
Income tax for trusts B
Limit on income tax reliefs A →
Married couples’ allowance and marriage allowance B A →
Pension contributions – provisions for retirement B A
Pension contributions – tax reliefs B A
Personal allowances B A →
Qualifying interest payments B →
Rates of taxation B A →
Taxable persons C A →
INHERITANCE TAX
Fundamental principles of inheritance tax
Chargeable persons A →
Chargeable property A →
Excluded property B →
Inter-spouse transfers A →
Rates of taxation A →
Related property B →
Seven-year accumulation period A →
Transfers of value A →
Trusts C B
Valuation A →
Inheritance tax on lifetime transfers
Relevant property trusts A →
Potentially exempt transfers A →
Inheritance tax on death
Death estate A →
Deeds of variation B
Lifetime transfers A →

© ICAEW 2019 25
 CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

Overseas aspects of inheritance tax

Deemed domicile C A
Domicile C A
Double tax relief A →
Lex-situs rules A →
Reliefs and exemptions from inheritance tax B
Agricultural property relief C B
Annual exemption A →
Business property relief B A
Fall in value relief A →
Gifts to charities and political parties A →
Gifts with reservation of benefit A
Pre-earned assets
Inter-spouse transfers A →
Marriage/civil partnership exemption A →
Normal expenditure out of income A →
Quick succession relief B →
Small gifts exemption A →
Taper relief A →
NATIONAL INSURANCE CONTRIBUTIONS
Class 1
–– calculation A → →
–– directors B →
–– earnings C B →
–– employment allowance A → →
Class 1A
–– calculation A → →
–– earnings C B →
Class 1B B →
Class 2 A → →
Class 4
–– calculation A → →
–– earnings C B →
Maximum contributions C →
CORPORATION TAX
Chargeable gains
Chargeable assets C B →
Chargeable disposals C B →
Chargeable persons C B →
Chattels: wasting and non-wasting B → →
Costs of acquisition and disposal C B →
Indexation B A →
Leases A
Nil gain/nil loss transfers A →
Part disposals B →
Purchase of own shares A

26 TECHNICAL KNOWLEDGE © ICAEW 2019

 CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

Qualifying corporate bonds B →

Relief for capital losses A →
Reorganisations and reconstructions A
Shares and securities (including bonus and rights issues) B →
Substantial shareholding exemption C A
Trading profits
Adjustments to profits B A →
Badges of trade B A →
Capital allowances B A →
Foreign currency transactions A
Long periods of account C A →
Pension contributions B A
Patent royalties B
Taxable total profits
Chargeable gains B A →
Intangible assets B A
Loan relationships B B A
Loan relationships – corporate interest restriction A
Miscellaneous income B A →
Patent box B
Property income (including lease premiums) B A
Qualifying donations B A →
Research and development expenditure A →
Research and development tax credits B A
Trading losses B A
Trading profits B A →
Use of deficit on non-trading loan relationships B A
Corporation tax computation
Accounting periods C B A
Close companies A
Corporation tax liability B A →
Distributions B →
Diverted profits tax B
Double tax relief (including underlying tax and withholding tax) B →
Liquidation A
Provision of services through a company A
Rates of taxation B A →
Residence C B →
Tax treaties and the OECD Model Tax Convention A C
Groups
Capital gains groups B A
Change in group structure A
Change in ownership A
Consortium relief A
Controlled foreign companies A
Degrouping charges B A

© ICAEW 2019 27
 CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION

Group loss relief B A

Group relationships A →
Non-coterminous accounting periods A
Overseas companies and branches B
Pre-acquisition gains and losses A
Related 51% group companies B A
Roll-over relief B A
Transfer of assets B A
Transfer pricing A
STAMP TAXES
Basic principles B →
Chargeable occasions B →
Exemptions B →
Stamp taxes for groups B →
VAT
Capitals goods scheme B →
Classification of supplies B →
Distinction between goods and services C →
Overseas aspects A →
Group aspects A →
Input VAT A → →
Output VAT A → →
Partial exemption B →
Payments A → →
Penalties and interest A → →
Property transactions B A
Registration and deregistration A → →
Single and multiple supplies B →
Small business reliefs A → →
Taxable person A → →
Taxable supplies A → →
Transfer of a business as a going concern A
VAT records and accounts A → →

28 TECHNICAL KNOWLEDGE © ICAEW 2019