e x a m s
S 2007taxpaper f6, taxation (uk)
The following notes refer to Paper F6 (UK) only. Guidance for other variantpapers – where available – will be published on the ACCA website.
Knowledge of new legislation will not be required until at least sixcalendar months after the last day of the month in which the legislationreceived Royal Assent. The relevant last day for the December 2007exams was 31 May 2007.
The latest Finance Act which will be examined in Paper F6 (UK) atthe December 2007 session is the Finance Act 2006. With regardto prospective legislation when, for example, provisions included inthe Finance Act will only take effect at some date in the future, suchlegislation will not normally be examined until such time as it actuallytakes effect. The same rule applies to the effective date of the provisionsof an Act introduced by statutory instrument.The following relevant articles have been published in
and are also available on the ACCA website: finance act 2006 – January 2007 examiner’s approach to Paper F6 (UK) – January 2007.
The following supplementary instructions will be included in theDecember 2007 exam: calculations and workings need only be made to the nearest £ all apportionments should be made to the nearest month all working should be shown.
tax rateS and allowanceS
The following tax rates and allowances will be reproduced in the exampaper for Paper F6 (UK). In addition, other specific information necessaryfor candidates to answer individual questions will be given as part of thequestion. For example, in the case of corporate chargeable gains, therelevant retail prices index for particular dates will be given at the end ofthe relevant question.
Starting rate £1 – £2,150 10Basic rate £2,151 – £33,300 22Higher rate £33,301 and above 40
Standard £5,03565 – 74 £7,28075 and over £7,420Income limit for age-related allowances £20,100
c b p
The base level of CO
emissions is 140 grams per kilometre.
c f b
The base figure for calculating the car fuel benefit is £14,400.
ps Sh ls
Annual Allowance £215,000The maximum contribution that can qualify for tax relief without anyearnings is £3,600.
Writing-down allowance 25First-year allowance – Plant and machinery 40– Low emission motor cars (CO
emissions of less than 120 grams perkilometre) 100For small businesses only: the rate of plant and machinery first-yearallowance was increased to 50% for the period from 1 April 2006 to31 March 2007 (6 April 2006 to 5 April 2007 for unincorporatedbusinesses).
Writing-down allowance 6
Writing-down allowance 4
c tf y 2004 2005 2006
Small companies rate 19% 19% 19%Full rate 30% 30% 30%Lower limit 300,000 300,000 300,000Upper limit 1,500,000 1,500,000 1,500,000Small companies rate 11/400 11/400 11/400
(M - P) x I/P x Marginal relief fraction
V a t
Registration limit 61,000Deregistration limit 59,000