This module aims to provide students with a good working knowledge of Capital Gains Tax, Value Added
Tax, Corporation Tax and Income Tax for businesses. It aims to extend students knowledge of Value Added
Tax (VAT) and Income Tax gained in the previous semester. It aims to provide students with the ability to
compute an individual’s, and company’s liability to Capital Gains Tax, the liability of a business to VAT with
a focus on the international aspects of VAT, and a company’s liability to Corporation Tax. It aims to further
student’s knowledge of sole trader’s income liable to Income Tax.
Value Added Tax
Place of supply rules for goods and services. VAT calculations on intra-community acquisitions and intra-community dispatches of goods, intra-community supplies of services, imports and exports of goods and services.
Commencement and cessation rules under Schedule D Case I/II for sole traders.
Capital Gains Tax
Definitions of chargeable gains, disposals and chargeable persons, the method of computation including indexation, losses and withholding tax. The calculation of chargeable gains as they arise from gifts and part-disposals. Disposal of shares and securities. Disposals of development land, chattels and business assets. Principal private residence relief.
Corporation Tax computations and administrative procedures under self-assessment. The allowability or otherwise of different types of expenditure when calculating taxable profit. Treatment of chargeable gains, charges and reliefs.
The definition of plant for capital allowance purposes. Calculation of wear and tear allowances, balancing allowances and balancing charges. Calculation of Industrial Building writing down allowance.
The teaching strategy for all of the taxation modules is one which emphasises the need for the student to be actively engaged in the learning process, both in class and when they are studying in their own time. In order to achieve this, students are encouraged to ask and answer questions during class, to do examples in class as well as following solutions prepared by the lecturer. A large element of year 2 and 3 activity involves practically applying the knowledge gained to given situations. In year 4 the approach changes to incorporate more of a problem solving approach – for example consideration if a taxpayer qualifies for a relief and if the taxpayer should claim the relief. This develops problembased learning skills which are important for the accountant/tax consultant in their future careers. As part of an active learning strategy, communication skills are emphasised particularly in year 4 tax classes. It is important that an accountant or tax consultant be able to explain tax rules both orally and in written form. Particular emphasis is placed on this throughout year 4 tax classes where rules relating to specific reliefs and those relating to specific company tax issues are emphasised through oral and written communication by lecturer and student alike. Research skills are also an important element of the teaching and learning strategies of these modules, particularly in year 4, where some case study exercises are carried out which develop research and problem solving skills. Given the emphasis on taxation in the media in recent years, discussion of current tax issues is also featured in tax classes from years 2 to 4. Throughout these classes the students’ responsibility for their learning both within and outside the class is emphasised. Taxation is a subject that is constantly changing. Each year material is updated so that students are learning current information about tax issues. Class notes and a comprehensive textbook support the teaching of tax material in all years. The department uses Moodle to disseminate notes to students, to publish past exam /assessment papers and suggested solutions, to add extra reading relevant to the topic being studied and with links to relevant websites to encourage students to research topics being studied. Some recordings of relevant material are also available for students particularly to revise relevant material from prior years. In delivering the programme we will also be cognisant of emerging taxation policies including those that support sustainability. Any programme for sustainable development has implications for public spending. In addressing this issue, it must be understood that public expenditure programmes and taxes provide a framework which help to shape market prices, as well as rewarding certain activities and penalising others.
|Module Content & Assessment