Tx notes fa22 Final

7.2. Components of an ISA 
(a)
Cash - for example in a bank account
(b)
Stocks and shares listed anywhere in the world
7.3. Subscription limits 
The annual subscription limit is £20,000 per tax year and ISAs permit the taxpayer complete 
flexibility over the mix of investments in either cash or stocks and shares. 
This limit will be provided in the tax rates and allowances section of the exam paper. 
8. National savings 
National Savings Certificates - these are exempt from Income Tax.
However, some National Savings & Investments (NS&I) products are taxable, namely:
๏
NS&I Easy Access account / NS&I Direct Saver Account
๏
NS&I Investments accounts 
The income is received gross without deduction of tax at source.
The nature of the investments are historically risk free.
You should now attempt Practice Questions 5 to 7



---

40
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
June 2023 to March 2024 exams
Watch free ACCA TX lectures

---

41
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
June 2023 to March 2024 exams
Watch free ACCA TX lectures
Chapter 4
TAX ADJUSTED TRADING PROFIT – 
INDIVIDUALS 
1.
 
Badges of trade 
The following tests are used to establish if a transaction(s) should be treated as trading and taxed as 
income under tax adjusted trading profit rules or whether they should be treated as capital 
transactions and treated as capital gains.
You can use the mnemonic SOFIRM to help you remember the above tests.