P6 – Advanced Taxation

Tips include:

* Corporation tax including IBA, loss relief (S393A), group and consortium relief, overseas subsidiaries, group gains and VAT

Key scenarios:

One or more of the following is likely to feature on the exam:

l      CGT vs IHT for lifetime gifts

l      Employed vs self-employed (IT and NICs)

l      Badges of trade (IT vs CGT)

l      Employee vs partner (IT and NICs)

l      Extraction of funds from company: salary vs dividend (IT, NICs, Corp. Tax)

l      Incorporation (IT, NICs, VAT, CGT), perhaps with incorporation relief vs gift relief

l      Comparison of employment packages and benefits (eg. cash vs car, share options vs bonus)

l      Corporation tax – disposal of business: sale of shares vs sale of assets

* Close companies - maybe a letter on this.

* VAT – cash accounting scheme, annual accounting scheme, due date for registration.

* Financial planning – sources of finance, lease versus buy, investments including EIS vs VCT, the Financial Services and Markets Act 2000, pensions