Preparing for F6 – Taxation

A student asked me yesterday on how to approach revision before the F6 exam this March. I agree that the syllabus of the F6 exam can be daunting. There are 25 chapter with a lot of key areas. There are a lot of computational techniques, rules, filing dates and reliefs to remember. The key is not to panic and concentrate on the methodology rather than getting the numbers right in the section C long answers.

Income tax for individuals

You must perfect employment income and benefits from employment. The examiner will almost always question employment income for an individual who is also part of a partnership as well. So you must be able to deduce profits from the partnership which is fairly straight forward. You must be able to calculate motor car benefit and private use calculations are essential. The question will be coupled with either losses or filing deadlines and penalties. Often NIC and pensions also form part of such questions. Exam practice in an exam environment is essential. The ACCA website provides a platform where you can practice it on the spreadsheet which will be given in the exam.

Capital gains

Capital gains will form part of section A and B and sometimes even section C. But you must be able to deal with capital gains on various assets. Most importantly you must be able to deal with the different reliefs available. Practice multiple choice questions given in the exam kit for this topic to get a feel as to how you will be examined.

Corporation tax

A section C long question for corporation tax is almost guaranteed. I believe this is an easy area to gain marks. This will be coupled with compliance and filing deadlines so you must know your theory. Basic computation of TTP along with identification of groups and reliefs is extremely important. Please revise the text book chapters and then solve all the corporation tax previous exam questions.

Inheritance tax

Again a certain question on inheritance tax is guaranteed either in section B or C. Ensure you understand the 7 year rule and exemptions. It can be tricky and hence solving examples is extremely important.

Other topics

Topics which can be tested individually or along with the ones mentioned above are as follows:

VAT (easy marks available)

Partnerships

Losses for individuals and reliefs along with opening and cessation rules

Tax planning – pensions, ISA, marriage allowance

Tax administration- filing dates, errors and penalties

Do reach out if you have any specific questions. Best of luck to all our future ACCA members.

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