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ACCA Applied Skills · Taxation (UK) · The overall function and purpose of taxation in a modern economy

A new tax measure is included in a Finance Act but is stated to take effect only from a date after the exam sitting. How will TX-UK normally treat it?

Prospective legislation is not normally examined until it actually takes effect. Even if a provision is in a Finance Act, if it only applies from a future date, TX-UK will not normally test it until that effective date has been reached.

  1. AIt will be examined as soon as the Act receives Royal Assent
  2. BIt will not normally be examined until it actually takes effectCorrect
  3. CIt will be examined only in the constructed response section
  4. DIt will be examined only if it is also mentioned in a Student Accountant article

Explanation

ACCA's examinable documents state that prospective legislation, where provisions only take effect at a future date, will not normally be examined until it actually takes effect. Royal Assent alone is therefore not sufficient. The rule is not limited to a particular exam section.

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