Level 4 AAT Professional Diploma in Accounting (Distance Learning) – Unit in Personal Tax

This unit provides students with the fundamental knowledge of the three most common taxes that affect taxpayers in the United Kingdom (UK): income tax, capital gains tax and inheritance tax. With this knowledge, students will be equipped to prepare not only the computational aspects where appropriate of these taxes, but also appreciate how taxpayers can legally minimise their overall taxation liability.

Students will study the underpinning theory of taxation and will gain knowledge of taxes that affect every taxpayer in the UK. Within income tax, students will cover employment income, income from investments and income from property. Deductions and reliefs that apply to income tax are covered so that students can compute the net income tax liability for a UK taxpayer. National Insurance completes this topic area.

Students will also study capital gains tax and inheritance tax. The fundamental principles of these taxes will be covered so that students can appreciate how they may affect UK taxpayers.

With their knowledge of these three taxes, students will then understand the taxation implications of decisions made by clients, and understand that advice and guidance may be offered to ensure that the taxpayer is complying with tax legislation.

The overall learning aim of the unit is to equip students with a knowledge of taxation as it applies to UK taxpayers so that accurate and fair taxation liabilities can be computed. It also enables students to appreciate the theory behind taxation, including the ethical aspects as it specifically applies to a taxation practitioner.

This unit is optional in the Level 4 Diploma in Professional Accounting.