This optional unit is about the key aspects of taxation that affect UK taxpayers. It covers income tax, National Insurance (NI), capital gains tax and inheritance tax. This unit provides students with the underpinning theory on taxation, such as what makes for a fair and equitable taxation system. Students then explore three core areas of income that contribute to a taxpayer’s income tax liability: employment income, income from investments and income from property. Deductions and reliefs that apply to this income are then covered so that students can compute the net income tax payable or reclaimable for a UK taxpayer.
The unit covers NI as applicable to employment income, together with the key principles that are part of capital gains tax and inheritance tax. Students are also expected to demonstrate their knowledge and understanding of how UK taxpayers can minimise their tax liability legally. The ethical issues that surround this complex area will also be considered. Taking all areas together, students will gain knowledge and understanding of all key areas of UK tax that can affect an individual UK taxpayer.
- Analyse the theories, principles and rules that underpin taxation systems
- Calculate a UK taxpayer’s total income
- Calculate income tax and National Insurance (NI) contributions payable by a UK taxpayer
- Account for capital gains tax
- Discuss the basics of inheritance tax