Tx notes fa22 Final

June 2023 to March 2024 exams
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June 2023 to March 2024 exams
Watch free ACCA TX lectures
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ANSWERS TO EXAMPLES 
Chapter 1 
Answer to Example 1 
(a)
Income Tax and NIC - both direct taxes
(b)
Corporation tax on profits and NIC in respect of employees - both direct taxes. Employees pay 
income tax and NIC on salary
(c)
Capital gains tax - direct tax
(d)
The business is charged VAT – indirect tax
(e)
Corporation tax (companies pay corporation tax on their chargeable gains) - direct tax
(f)
Inheritance tax - direct tax
Chapter 2 
Answer to Example 1 
Mr Smith Income tax computation 2022/23
Tax calculation
:
Non Savings
Non-
savings
Total
£
£
Employment Income
62,500
62,500
Total income
62,500
62,500
Less: Personal Allowance
(12,570)
(12,570)
Taxable income
49,930
49,930
37,700 @ 20% 
7,540
12,230 @ 40% 
4,892
49,930
Tax liability
12,432
Less: tax su
ff
ered at source (PAYE)
(12,000)
Tax Payable
432

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