AAT – Personal Tax

This course provides students with a fundamental understanding of the three most common taxes in the United Kingdom: income tax, capital gains tax, and inheritance tax. Students will learn both the computational methods for these taxes and strategies for legally minimizing tax liabilities. The course covers the theoretical basis of taxation and specific details regarding income tax, including income from employment, investments, and property. It also addresses deductions and reliefs, enabling students to calculate their net income tax liability. National Insurance is included as part of the income tax study. Further, students will explore the principles of capital gains tax and inheritance tax to understand their impact on UK taxpayers. The course also focuses on how students can apply this tax knowledge to assist clients, ensuring they make informed decisions while complying with tax legislation. It aims to equip students with the ability to accurately compute tax liabilities and understand the ethical considerations for taxation practitioners. This course is an optional component of the Level 4 Diploma in Professional Accounting. Learning Outcomes: On successful completion of this subject, you should be able to:

1. Understand principles and rules that underpin taxation systems
2. Calculate UK taxpayers’ total income
3. Calculate income tax and National Insurance contributions (NICs) payable by UK taxpayers
4. Calculate capital gains tax payable by UK taxpayers
5. Understand the principles of inheritance tax