F6 – Schedule of key changes to Complete Text – FA2013

General points:

 The table below lists the major changes to the material made for this year’s sitting which are in addition to the updating for the Finance Act in 2013.
The major changes due to the Finance Act have also been included below.
 See the Finance Act update document for full details of those changes.

Detailed description of changes:

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 F6 – Schedule of key changes to Complete Text – FA2013
Prelims
1 UK tax system
2 Basic income tax computation
3 Property and investment
income
4 Employment income
5 Income from self-employment
6 Capital allowances:
Plant and machinery
Major changes
Included revised tax rates and allowances per ACCA
Syllabus amended for changes in FA13 and some topic deletions (see below)
Direct and indirect taxation section revised slightly
Structure of HMRC – revised content
Double taxation section revised as this is now in the syllabus under ‘UK tax system’ and no longer
examinable for companies
Added anti-avoidance disclosure requirements and general anti-abuse rule and slight amendment to TYU 1
Added need to consider materiality when a client refuses to disclose an error
Added dishonest conduct of tax agents
Changes to examples and TYUs due to changes in the personal allowances and tax bands
Amended PAA terminology to refer to dates of birth rather than ages
Mentioned new maximum deduction from total income – but detail in Chapter 9
Added new section on child benefit charge, with example and TYU
Added new section on residency definition with new TYU
Deleted reference to renewals basis as no longer exists
Some changes to FHL advantages section
Major changes
Amendments to TYUs due to FA2013 changes to car and fuel benefits
Luncheon vouchers removed from list of exempt benefits
Added clarification of how £150 exemption for annual parties operates
Removed all refs to cc of cars as no longer needed
Added new mnemonic FAST to badges of trade section
Added section on cash basis and flat rate expenses with two new Test your understandings
Changed some year ends so that they are no longer all 31 March
External solar shading added to list of integral features
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 F6 – Schedule of key changes to Complete Text – FA2013

7 Sole traders: Basis of Added to choice of accounting date section

assessment Removed change of accounting date section as no longer in the syllabus

8 Partnerships Mentioned availability of cash basis to partnerships

9 Trading losses Added section on the maximum deduction from total income rules, with TYU
Removed incorporation relief as no longer in the syllabus

10 Pensions Added a note re automatic enrolment

Reduced notes re annual allowance charge before 2011/12
Minor changes to TYU 3 and 4

11 National insurance Stated explicitly that mileage in excess of 45p per mile is subject to Class 1
Slight amendment to Class 2 payment rules

Major changes

12 Tax administration for Amended calculations of interest to be consistent with the way it is examined and amended strict technical
individuals rule slightly
Reduced section on tax tribunals slightly
Added that penalty for careless error can be reduced to 0% with unprompted disclosure
Reduced enquiry (compliance check) section as this has been reduced in the syllabus and took out
information and inspection powers which are no longer in the syllabus
Added details re real time information and removed references to P35, P46 and P14 which are now obsolete

13 Computation of gains Removed references to ordinary residence and referred to chapter 2 for definition of residence
Slight reordering of chargeable disposal section

14 Computation of gains: special Example 11 on wasting assets turned into a TYU

rules Asset destroyed and proceeds only partially reinvested added as was examined in Dec 12
Some amendments so that question gives income and student has to calculate taxable income to determine
rates applicable to CGT (also in chapter 16)

15 CGT: Shares and securities Straight update

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 F6 – Schedule of key changes to Complete Text – FA2013

16 CGT: Reliefs PPR diagram amended

Added that new asset acquired for rollover relief must be brought into business use when it is acquired
Changed ‘holdover relief for gift of business assets’ to ‘gift relief’ as this is how it is more commonly known
Removed incorporation relief as no longer in the syllabus

17 Inheritance tax Specified that small gifts exemption must be a gift to an individual
Specified that gambling debts are not deductible from the death estate
Specified that increased NRB after transfer from spouse is available against lifetime gifts taxable on donor’s
death and death estate

Major changes

18 Introduction to corporation Added miscellaneous income to pro forma

tax Added a short section on the choice of accounting date for a company
Added details re overseas dividends to franked investment income section (as overseas aspects chapter is
now deleted due to the remainder of that chapter being no longer examinable) – tested this point in TYU 5
Changed TYU 7 to test different TTPs for the same company with the same year end – so in (a) the rate is
small and no straddling calculation is necessary and in (b) the main rate applies and therefore a straddling
calculation is necessary

19 Taxable total profits Changed CO2 emissions of cars in examples and TYUs so still being treated the same way (FYAs, 18% or 8%
WDA). Increased additions so use of AIA still tested. Increased trading profits so not loss making
Changed period end in TYU 6 as they can now be examined on periods straddling 31 March for CA purposes

20 Chargeable gains for Straight update

companies

21 Losses for companies TYU 1 – added QCDs

22 Groups of companies Added definition of ‘unrelieved’ re property losses and QCDs

Moved section on AIA and group companies into expandable text

23 Overseas issues for companies Chapter deleted as no longer in syllabus

24 Tax administration for Changed wording re instalment payments for short accounting periods to clarify

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 F6 – Schedule of key changes to Complete Text – FA2013

now companies Amended calculation of interest on overdue tax as in chapter 12

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25 VAT: outline Added option to register for VAT online
now Changed intra-group supplies to be ‘disregarded’ rather than ‘outside the scope’ of VAT
24 Changed latest date by which relief for impairment losses can be claimed
Stated that partial reinvestment by employee for private fuel not examinable.

Major changes

26 VAT: administration and Added option to send invoices electronically provided customer agrees
now overseas aspects Changed rules re simplified invoicing to apply to all traders and TYU 2
25 Amended date of acquisition for EU purchases
Added that purchases from within or outside the EU have the same net effect

27 Qs and As Added Wilf Evans in chapter 25 as requested by tutors, but amended slightly for current rules
now
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