ACCA Strategic Professional · Paper ATX
ACCA Advanced Taxation (ATX-UK) Study Guide
ATX-UK is a written Strategic Professional Option exam on UK tax law. You advise individuals, companies and groups on income tax, capital gains tax, inheritance tax, corporation tax, VAT and stamp taxes. To pass, answer the requirement, compute accurately from the provided tax tables, and explain your advice clearly.
Advanced Taxation (ATX-UK) is one of the four Options at Strategic Professional. It is a written exam of 100 marks, lasting 3 hours 15 minutes, and all questions are compulsory. There are no objective test questions. Section A is a 50-mark case study. Section B has two compulsory 25-mark questions. Section A carries 35 technical marks, 5 ethics marks and 10 professional skills marks. The exam is based on UK tax law and the Finance Act 2025, and you use the tax tables ACCA provides. The pass mark is 50%.
The paper tests two things together: can you compute a UK tax liability correctly, and can you advise on what to do about it. The chapter list shows this. The first part covers the main taxes: income tax, national insurance, capital gains tax, inheritance tax, corporation tax, stamp taxes, VAT and administration. The second part covers planning: comparing alternatives, timing, statutory obligations, mitigation and ethics. Questions often mix taxes. One scenario may involve an owner-managed company, the owner's personal tax, a gift of shares and the inheritance tax effect.
Students usually score well on the computations they have practised, and lose marks on the advice. A common pattern is a sound calculation followed by a thin explanation that does not use the facts given. Marks are also lost by missing a tax in a mixed scenario, or by ignoring a time limit or filing date. You can pick up steady marks by working through the requirement line by line, stating the rule briefly, applying it with figures, and giving a clear recommendation. Professional skills marks reward structured, relevant and well-communicated answers, so treat them as part of your normal technique.
Advanced Taxation (UK): chapters and topics
Knowledge and understanding of the UK tax system
Income tax: the scope of income tax, residence and overseas aspects
Knowledge and understanding of the UK tax system
Income tax: income from employment
- Employment vs Self-Employment Status
- Taxable Earnings and Employment Income Basis
- Benefits in Kind and the Official Rate of Interest
- Class 1 and Class 1A National Insurance Contributions
- Share Schemes: Approved and Unapproved
- Termination Payments and Redundancy
- Pension Contributions and the Annual Allowance
- Tax-Efficient Remuneration Planning
Knowledge and understanding of the UK tax system
Income tax: income from self-employment
- Adjustment of Profits for Sole Traders and Partners
- Capital Allowances and Structures and Buildings Allowance
- Basis Periods and Opening and Closing Year Rules
- Trading Losses and Relief Options
- Partnerships and Limited Liability Partnerships
- National Insurance for the Self-Employed
- Pension Contributions and Reliefs for Traders
- Business Reliefs: Incorporation, Cessation and Disposal
Knowledge and understanding of the UK tax system
Income tax: property and investment income
- UK Property Business Income: Computation and Losses
- Capital Allowances on Plant, Machinery and Structures
- Rent-a-Room Relief and Furnished Holiday Lettings
- Savings and Dividend Income: Rates, Nil Rate Bands and Allowances
- Tax-Efficient Investments: ISAs, Pensions and Reliefs Cap
- Interest on Tax, Penalties and Stamp Taxes on Investments
Knowledge and understanding of the UK tax system
Income tax: the comprehensive computation of taxable income and the income tax liability
- Income Tax Computation Format and Types of Income
- Personal Allowance, Restrictions and Reliefs
- Income Tax Rates, Bands and Nil Rate Bands
- Cap on Income Tax Reliefs
- Pension Contributions and Relief in the Computation
- Payment of Income Tax, Interest and Penalties
- Tax Planning and Comprehensive Income Tax Scenarios
Knowledge and understanding of the UK tax system
Income tax: the use of exemptions and reliefs in deferring and minimising income tax liabilities
Knowledge and understanding of the UK tax system
National insurance contributions for employed and self-employed persons
Knowledge and understanding of the UK tax system
Capital gains tax: the scope of the taxation of capital gains
Knowledge and understanding of the UK tax system
Capital gains tax and trusts
- CGT Rates, Annual Exempt Amount and Computation Basics
- Business Asset Disposal Relief and Investors' Relief
- Gift Holdover Relief and Rollover Relief
- Share Disposals, Reorganisations and Share Matching
- Capital Gains Tax, Capital Allowances and Stamp Taxes Links
- Trusts: Types, Creation and CGT on Transfers
- Trusts: Income Tax, Interest and Inheritance Tax
Knowledge and understanding of the UK tax system
Capital gains tax: the basic principles of computing gains and losses
Knowledge and understanding of the UK tax system
Capital gains tax: gains and losses on the disposal of movable and immovable property
- CGT Rates, Annual Exempt Amount and Computation of Gains
- Chattels, Wasting Assets and Part Disposals
- Business Asset Disposal Relief and Investors' Relief
- Gift Holdover Relief, Rollover Relief and Incorporation Relief
- Disposal of Shares, Share Reorganisations and Matching Rules
- Residential Property, Private Residence Relief and Reporting
- Capital Allowances, Stamp Taxes and IHT Interaction on Property
Knowledge and understanding of the UK tax system
Capital gains tax: gains and losses on the disposal of shares and securities
- Share Disposals by Individuals: Matching Rules and Pooling
- Bonus Issues, Rights Issues and Share Reorganisations
- Takeovers, Reconstructions and Share-for-Share Exchanges
- CGT Rates, Annual Exempt Amount and Business Asset Disposal Relief
- Investors' Relief and Share Loss Relief
- Gift Relief, Reliefs on Shares and Stamp Duty on Shares
Knowledge and understanding of the UK tax system
Capital gains tax: the use of exemptions and reliefs in deferring and minimising tax liabilities
- CGT Rates, Annual Exempt Amount and Loss Planning
- Business Asset Disposal Relief and Investors' Relief
- Gift Holdover Relief and Rollover Relief
- Incorporation Relief and Share Reorganisations
- Reinvestment Reliefs: EIS and SEIS Deferral
- Exemptions: Principal Private Residence, Chattels and Gifts to Charity
- CGT Administration, Interest and Payment Deadlines
Knowledge and understanding of the UK tax system
Inheritance tax: the scope of inheritance tax
Knowledge and understanding of the UK tax system
Inheritance tax: the basic principles of computing transfers of value
Knowledge and understanding of the UK tax system
Inheritance tax: the liabilities arising on chargeable lifetime transfers and on death
- IHT Scope, Transfers of Value and Domicile
- Lifetime Exemptions and Reliefs
- Chargeable Lifetime Transfers and PETs
- Death Estate and Residence Nil Rate Band
- Additional Tax on Death and Taper Relief
- Business and Agricultural Property Reliefs
- Valuation Rules, Related Property and Quick Succession Relief
- IHT Payment, Interest, Liability and Tax Planning
Knowledge and understanding of the UK tax system
Inheritance tax: transfers to and from trusts and property within trusts
Knowledge and understanding of the UK tax system
Inheritance tax: the use of exemptions and reliefs in deferring and minimising inheritance tax liabilities
Knowledge and understanding of the UK tax system
Inheritance tax: administration and payment, including the instalment option
Knowledge and understanding of the UK tax system
Corporation tax: the scope of corporation tax, including close companies and investment companies
- Scope of Corporation Tax and Chargeable Accounting Periods
- Corporation Tax Rates, Marginal Relief and Instalments
- Trading Profits and Capital Allowances for Companies
- Close Companies and Close Investment-Holding Companies
- Investment Companies and Property Income
- Interest Rates, Late Payment and Related Tax Interest
Knowledge and understanding of the UK tax system
Corporation tax: taxable total profits
Knowledge and understanding of the UK tax system
Corporation tax: chargeable gains for companies
- Computing Company Chargeable Gains and Indexation
- Substantial Shareholding Exemption
- Share Pooling and Matching Rules for Companies
- Rollover Relief for Companies
- Capital Losses and Chargeable Gains Group Relief
- Chargeable Gains Groups and Degrouping Charges
- Reorganisations, Reconstructions and Share-for-Share Exchanges
Knowledge and understanding of the UK tax system
Corporation tax: the comprehensive calculation of the corporation tax liability, including overseas aspects
- Corporation Tax Rates, Marginal Relief and Instalments
- Computing Taxable Total Profits
- Loss Relief for Companies
- Chargeable Gains for Companies and Reinvestment Relief
- Groups: Group Relief, Gains Groups and Stamp Taxes
- Overseas Aspects: Residence, Double Tax Relief and Branches
- Transfer Pricing, CFCs and Anti-Avoidance
- Administration, Interest and Payment of Corporation Tax
Knowledge and understanding of the UK tax system
Corporation tax: the effect of a group structure
Knowledge and understanding of the UK tax system
Corporation tax: the use of exemptions and reliefs in deferring and minimising corporation tax liabilities
- Corporation Tax Rates, Marginal Relief and Instalments
- Trading Losses: Carry Forward, Carry Back and Terminal Relief
- Group Relief and Capital Gains Group Reliefs
- Chargeable Gains for Companies: Rollover and Substantial Shareholding
- Intangible Assets, Research and Development and Patent Box
- Share Schemes, Pension Contributions and Employer Deductions
- Choice of Business Structure and Extraction of Profits
- Close Companies, Anti-Avoidance and Related Tax Reliefs
Knowledge and understanding of the UK tax system
Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax)
Knowledge and understanding of the UK tax system
Value added tax
Knowledge and understanding of the UK tax system
Tax administration and the UK tax system
- Scope of the UK Tax System and Examinable Documents
- Income Tax Rates, Bands and the Cap on Reliefs
- Corporation Tax Rates, Marginal Relief and Instalments
- CGT and IHT Rates, Allowances and Reliefs
- VAT Registration, Rates and Late Payment Penalties
- Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty
- Interest on Underpaid and Overpaid Tax and the Official Rate
The impact of relevant taxes on various situations and courses of action
Taxes applicable to a given situation or course of action and their impact
The impact of relevant taxes on various situations and courses of action
Alternative ways of achieving personal or business outcomes and their tax consequences
- Incorporation vs Remaining Unincorporated: Tax Comparison
- Extracting Profits: Salary, Dividends, Pensions and Benefits
- Incorporation Relief, Gift Relief and Business Asset Disposal Relief
- Share Sale vs Asset Sale and Business Exit Routes
- Inheritance Tax Planning: Lifetime Gifts and Wills
- Property Transactions: SDLT, Stamp Duty and VAT Considerations
- Financing Choices and Interest, Penalties and Instalments
The impact of relevant taxes on various situations and courses of action
Taxation effects of the financial decisions made by businesses and individuals
- Tax Effects of Raising Finance for Companies
- Extracting Profits from Owner-Managed Companies
- Choice of Business Structure and Incorporation
- Tax Implications of Acquiring and Disposing of Assets
- Tax Effects of Share Schemes and Employee Rewards
- Tax-Efficient Investment and Disposal Planning for Individuals
- Tax Implications of Corporate Restructuring and Group Decisions
- Cash Flow, Payment Dates and Compliance Impact of Decisions
The impact of relevant taxes on various situations and courses of action
Tax advantages and disadvantages of alternative courses of action
- Income Tax Rates, Bands and Cap on Reliefs
- Corporation Tax Rates, Marginal Relief and Instalments
- Capital Gains Tax Rates, Annual Exempt Amount and BADR
- Inheritance Tax: Nil Rate Bands, Rates and Taper Relief
- VAT Registration, Deregistration and Penalties
- Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty
- Interest Rates: Official Rate and Late or Overpaid Tax
The impact of relevant taxes on various situations and courses of action
Statutory obligations, time limits and the implications of non-compliance
- Tax Compliance Obligations and Record Keeping
- Penalties for Late Filing, Late Payment and Errors
- VAT Registration, Deregistration and Late Payment Penalties
- Stamp Duty Land Tax and Stamp Duty Filing Deadlines
- Statutory Residence Test and Reporting Implications
- Pension Scheme Limits and Annual Allowance Charge Reporting
- HMRC Enquiries, Assessments and Time Limits
Minimising and deferring tax liabilities by standard tax planning measures
Investment and other expenditure that reduces tax liabilities
- Capital Allowances for Plant and Machinery
- Tax-Efficient Investments: ISAs and Rent-a-Room Relief
- Cap on Income Tax Reliefs
- Tax Rates, Bands and Allowances for Planning
- Business Asset Disposal Relief and Investors' Relief
- Inheritance Tax Planning: Nil Rate Bands, Rates and Taper Relief
- Stamp Taxes, VAT and Interest and Penalty Rules
Minimising and deferring tax liabilities by standard tax planning measures
Legitimate tax planning measures
- Tax Avoidance, Tax Evasion and Tax Planning Principles
- Income Tax Planning: Rates, Bands and Reliefs Cap
- Capital Gains Tax Planning and Business Asset Disposal Relief
- Inheritance Tax Planning: Lifetime Gifts and Nil Rate Bands
- Corporate Tax Planning: Rates, Marginal Relief and Instalments
- VAT Planning: Registration, Deregistration and Penalties
- Stamp Taxes Planning: SDLT and Stamp Duty
- Interest on Tax and Cash Flow Planning
Minimising and deferring tax liabilities by standard tax planning measures
Appropriateness of planning measures to a taxpayer's circumstances and objectives
Minimising and deferring tax liabilities by standard tax planning measures
Mitigation of tax by numerical analysis and reasoned argument
- Quantifying Tax Savings Using Numerical Analysis
- Income Tax Planning: Rates, Bands and Dividend Rates
- Corporation Tax Planning: Rates, Marginal Relief and Instalments
- Capital Gains Tax and Inheritance Tax Planning Measures
- Stamp Taxes and VAT Planning Considerations
- Interest, Penalties and Cash Flow Effects of Deferral
- Reasoned Argument and Presenting Tax Planning Advice
Minimising and deferring tax liabilities by standard tax planning measures
Ethical and professional issues arising from the giving of tax planning advice
How to prepare Advanced Taxation (UK)
Plan for steady practice on past-style questions rather than reading alone. Aim to learn the rules once and then use them repeatedly in mixed scenarios. Check ACCA's current syllabus and the Finance Act 2025 scope for your sitting.
- Map the syllabus first. Group the chapters into the main taxes (income tax and NIC, capital gains tax, inheritance tax, corporation tax, VAT and stamp taxes) and the planning areas (alternatives, obligations, mitigation, ethics). Tick off what you already know from earlier papers.
- Refresh the Taxation (TX-UK) foundations quickly. Rebuild the income tax, capital gains tax and corporation tax computation layouts until you can set them out without notes, so exam time goes on the harder points.
- Study each tax in order, then learn its reliefs and exemptions. For every relief, note the conditions, the effect and the time limit. Examiners often test whether the conditions are met in the scenario.
- ACCA provides a tax rates and allowances table in the exam. Check the current ACCA exam-support material to see exactly what is and is not given, and practise finding rates and allowances in the table. Do not assume a rate or threshold is supplied unless that material confirms it, and make sure you know the rules and conditions that a table cannot give you.
- Practise integrated questions. Take one scenario and work out which taxes it touches for each person and company involved. Write a short list of the taxes before you start computing.
- Practise the planning chapters as written advice. For each option, compute the tax cost, state the advantages and disadvantages, and give a reasoned recommendation that fits the client's objectives.
- Build ethics and compliance into your routine. Revise the statutory obligations, filing and payment dates, penalties for non-compliance, and the professional responses to tax avoidance and client issues.
- Finish with timed full papers. Mark yourself strictly against the answer, list lost marks by cause (knowledge, calculation, application, presentation), and fix the biggest cause first. Do at least a few papers under real 3 hours 15 minutes conditions.
Time management in the exam
- Use the marks as your clock. The exam has 100 marks in 195 minutes, and that time must also cover reading, planning and review. Set aside about 15 minutes in total for those: about 10 minutes for reading and planning, and about 5 minutes for a final review. That leaves about 180 minutes, or roughly 1.8 minutes per mark. Allow about 90 minutes for Section A (50 marks) and about 45 minutes for each Section B question (25 marks).
- Read the whole requirement before you compute. Underline what is asked and for whom. Wasted work on the wrong person or tax is the most costly use of time.
- Do a quick plan for each question: list the taxes involved and the order of your answer. Two minutes spent here prevents omissions and rambling. Take this time from your 10 minutes for reading and planning, not from the writing time.
- Do not stall on a hard calculation. Make a reasonable assumption, state it, and move on. Come back if time remains. Method marks are available even when the final number is wrong.
- Write short, fact-based explanations. One sentence for the rule, one applying it to the scenario, then the effect on tax. Long general essays earn few extra marks.
- Keep the last 5 minutes for review, which is part of your 15-minute allowance. Check you answered every requirement, including ethics and professional skills points, and that figures are labelled and in the right currency (pounds).
Mistakes that cost marks in Advanced Taxation (UK)
Giving a computation with no advice
Fix: Always finish with a conclusion tied to the client's goal. Say what to do, why, and what the tax saving or cost is.
Missing a tax in a mixed scenario
Fix: Before writing, list every person, company and transaction, and ask which taxes each triggers: income tax, NIC, CGT, IHT, corporation tax, VAT, stamp taxes.
Stating reliefs without checking conditions
Fix: For each relief, write the conditions and test them against the facts given. If a condition fails, say so and suggest what could be changed.
Ignoring time limits and compliance dates
Fix: Treat claims, elections, filing and payment dates, and penalties as exam content. Include them whenever the scenario involves a claim or a late filing.
Generic answers that do not use the scenario
Fix: Quote the facts: names, amounts, dates and objectives. Each point should connect a rule to something in the question.
Neglecting ethics and professional skills marks
Fix: Practise ethics points on tax planning versus evasion and confidentiality. Use clear structure, a professional tone and a reasoned recommendation to earn the professional skills marks.
Advanced Taxation (UK): frequently asked questions
What is the format of the ATX-UK exam?
It is a written exam of 100 marks lasting 3 hours 15 minutes, and all questions are compulsory. Section A is a 50-mark case study and Section B has two 25-mark questions. There are no objective test questions.
How are marks split between technical and professional skills?
The exam has 80 technical marks and 20 professional skills marks. Section A is 35 technical, 5 ethics and 10 professional skills marks. The pass mark is 50%.
Which tax law does ATX-UK use?
It uses UK tax law, based on the Finance Act 2025 for the June 2026 to June 2027 sittings. You are given tax tables in the exam, so learn how to use them rather than inventing or guessing rates.
Is June 2027 the last sitting of ATX-UK?
ACCA has stated that June 2027 is the final sitting of the current Strategic Professional exams. The redesigned exams are first sat in September 2027. Check ACCA's site for how this affects your plans.
How should I split my study time across taxes?
Spend more time on the areas that appear in mixed scenarios and carry bigger numbers, and on any weak topics. Do not skip planning, compliance and ethics, because they earn marks in every section.