Synopsis of Module
This module aims to extend the scope of student knowledge of tax to include Capital Gains Tax, whilst deepening understanding of Corporation Tax and overseas aspects of taxation. This focuses on the ability to perform calculation of CGT liabilities and group Corporate Tax liabilities and in the understanding of the tax framework.
The module is taught via formal lectures, pre-prepared seminar questions, student presentations and independent research. Assessment is by closed book examination.
Aims of Module
| 1. | To extend students' knowledge of tax to include the operation and impact of Capital Gains Tax for business assets. |
| 2. | To build on prior knowledge of UK Corporation Tax and extend it to include knowledge of the operation of tax as it affects groups of companies. |
| 3. | To provide students with an understanding of basic tax planning opportunities, including implications of overseas activities. |
| 4. | To explore the theories of taxation as applied to income tax, corporation tax and VAT. |
Learning Outcomes
Students will be able to:
| 1. | Perform calculations of Capital Gains Tax for business assets. |
| 2. | Evaluate and calculate the tax implications of tax planning opportunities for groups of companies. |
| 3. | Discuss, compare and evaluate business tax planning issues and/or the system of UK taxation. |
Outline Syllabus
THE CHARACTERISTICS OF THE UK TAX SYSTEM
| • | Principles of an ideal tax |
| • | Income, corporate and indirect tax systems |
| • | International aspects of corporation tax |
CAPITAL GAINS TAX
| • | Principles and scope for companies and unincorporated business |
| • | Basis of calculation, indexation for companies, shares and securities post 31 March 1982, matching, re-organisations |
| • | Application of business exemptions and reliefs, rollover, taper relief, holdover on gifts, transfer to a company |
CORPORATION TAX
| • | Groups, group election, loss reliefs, capital gains |
| • | Overseas aspects, subsidiary versus branch, double tax relief, transfer pricing |
| • | VAT, partial exemption and international trading |
TAX PLANNING
| • | Incorporation, disposal of a business, directors and shareholders, remuneration packages, employment v self-employment |
Summative assessment
Assessment A: 2 1/2 Hour Closed Book Exam
The weighting of this assessment is 100%
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