Paper P6 Advanced Taxation (Finance Act 2015) For September 2016 to March 2017 Examination Sittings Pocket Notes Advanced taxation British library cataloguing-in-publication data A catalogue record for this book is available from the British Library Published by: Kaplan Publishing UK Unit The Business Centre Molly Millars Lane Wokingham Berkshire RG41 2QZ ISBN 978-1-78415-251-2 © Kaplan Financial Limited, 2016 Printed and bound in Great Britain ii The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties Please consult your appropriate professional adviser as necessary Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Kaplan Publishing kaplan publishing paper P6 Contents Reference to Complete text chapter Page Number Chapter Income tax – overview and investment income 1, Chapter Employment income – income tax and national insurance 15 Chapter Relief for pensions 37 Chapter Capital gains tax – introduction 6, 43 Chapter Capital gains tax – shares and securities 57 Chapter Capital gains tax – reliefs 67 Chapter Stamp taxes 6, 91 Chapter Inheritance tax 11-13 95 Chapter Personal tax – overseas aspects .10, 13 123 Chapter 10 Trusts 14 149 Chapter 11 Ethics, personal financial management and self-assessment .3, 15, 16 159 Chapter 12 Personal tax planning .2, 5, 13 187 Chapter 13 Business tax 17-19 201 Chapter 14 Value added tax 20, 21 235 kaplan publishing iii Advanced taxation Reference to Complete text chapter Page Number Chapter 15 Corporation tax – liability and losses 22-24 261 Chapter 16 Groups – corporation tax and VAT 27, 29 289 Chapter 17 Overseas issues – corporation tax and VAT 21, 28 309 Chapter 18 Business finance and tax planning for companies .25, 26, 29 325 Index iv I.1 kaplan publishing paper P6 Preface The exam These Pocket Notes contain the key points you need to know for the exam, presented in a unique way that makes revision easy and effective Section A (60%) Written by experienced lecturers and authors, these Pocket Notes break down content into manageable chunks to maximise your concentration Quality and accuracy are of the utmost importance to us so if you spot an error in any of our products, please send an email to mykaplanreporting@kaplan.com with full details, or follow the link to the feedback form in MyKaplan Our Quality Co-ordinator will work with our technical team to verify the error and take action to ensure it is corrected in future editions kaplan publishing • compulsory questions: Question 1: 35 Marks, including professional marks Question 2: 25 Marks Section B (40%) • A choice of two questions out of three, with each question attracting 20 marks The entire syllabus can be tested in either section A or section B Questions will be scenario based and will normally involve consideration of more than one tax, together with some elements of planning and the interaction of taxes Computations will normally only be required in support of explanations or advice and not in isolation v Advanced taxation The examination time is hours and 15 minutes Topics which are not tested at F6 and are new to P6 will be frequently examined However, candidates will also need a thorough knowledge and understanding of the basic tax rules in F6 Exam focus The examining team has stated that the P6 exam will concentrate on the application of tax rules and will require the demonstration of evaluation and explanation skills They will set questions involving: • the interaction of taxes • decision making within the facts of a given situation • making choices in a given situation and evaluating the tax savings which can be made Questions in section A will be open ended and are likely to require presentation in the form of a report or letter Section B questions will be more structured in their requirements vi kaplan publishing paper P6 Aim of the paper To apply relevant knowledge and skills and exercise professional judgement in providing relevant information and advice to individuals and businesses on the impact of the major taxes on financial decisions and situations Main capabilities Understanding of the tax system through the study of more advanced topics within the taxes studied previously and the study of stamp taxes (A) Impact of relevant taxes on various situations and courses of action, including the interaction of taxes (B) Minimising and/or deferring tax liabilities by the use of standard tax planning measures (C) Communication with clients, H M Revenue and Customs and other professionals in an appropriate manner (D) kaplan publishing vii Advanced taxation The keys to success: Paper P6 Master the technical content viii Provide advice and exercise judgement – Higher skills • Express yourself in clear, concise technical language • Learn the rules, definitions and pro formas • • Practise questions to improve your ability to apply the techniques and perform the calculations Apply common sense to the problem as well as your technical knowledge • • Practise writing explanations of the rules to improve your understanding and written skills Tailor your answer to the facts of the question and make references to the scenario given • • Be prepared to produce a report /letter / memorandum Be prepared to express an opinion or draw a conclusion from the facts given – if the question asks for an opinion, give one • Be prepared to suggest improvements to a proposed strategy and to identify tax planning opportunities • When dealing with more than one tax, address each one separately kaplan publishing ... Section B questions will be more structured in their requirements vi kaplan publishing paper P6 Aim of the paper To apply relevant knowledge and skills and exercise professional judgement in providing... tax planning for companies .25, 26, 29 325 Index iv I.1 kaplan publishing paper P6 Preface The exam These Pocket Notes contain the key points you need to know for the exam,... recording or otherwise, without the prior written permission of Kaplan Publishing kaplan publishing paper P6 Contents Reference to Complete text chapter Page Number Chapter Income tax – overview and