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Additional info for ACCA - F6 - Taxation FA 2010: Study Text
The most important example to date is VAT, where the UK is obliged to pass its laws in conformity with the rules laid down in the European legislation. The VAT Directives still allow for a certain amount of flexibility between member states, eg in setting rates of taxation. There are only limited examples of Directives in the area of Direct Taxes, generally concerned with cross-border dividend and interest payments and corporate reorganisations. However, under the EU treaties, member states are also obliged to permit freedom of movement of workers, freedom of movement of capital and freedom to establish business operations within the EU.
The tax credit can be deducted in computing tax payable but it cannot be repaid. com 19 Income from certain investments is exempt from income tax. They are therefore useful for tax planning to minimise tax from investments. Exam focus point In the examination you may be given details of exempt income. You should state in your answer that the income is exempt to show that you have considered it and have not just overlooked it. 2 Individual savings accounts An individual savings account (ISA) is a special tax exempt way of saving.
Com The computation of taxable income and the income tax liability Topic list Syllabus reference 1 The scope of income tax B1(a) 2 Computing taxable income B5(a) 3 Various types of income B4(f), (g), B5(a) 4 Tax exempt income B4(h) 5 Deductible interest B5(d) 6 Allowances deductible from net income B5(b) 7 Computing tax payable B5(c) 8 Gift Aid B5(e) 9 Jointly held property B5(f) B6(c) Introduction In the previous chapter we considered the UK tax system generally. Now we look at income tax, which is a tax on what individuals make from their jobs, their businesses and their savings and investments.
ACCA - F6 - Taxation FA 2010: Study Text by BPP Learning Media Ltd