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ACCAACCA ATX Cheat Sheet: Corporation Tax Groups, IHT and Advanced CGT
ExpertMinds Editorial·3 June 2026·8 min read
Practice ACCA questions while you read →Key fact:ATX exam: 3 hours 15 minutes · 100 marks · Section A (1 compulsory question, 35 marks) + Section B (choose 2 of 3 × 25 marks + 1 × 15 marks). ATX builds on TX — tax computations are shorter; the emphasis is on advice and evaluation.
Corporation Tax — Group Relationships
| Relationship type | Threshold | Benefit available |
|---|---|---|
| Group relief (current year losses) | 75% subsidiary (direct or indirect ownership + economic interest) | Surrender current year trading losses, property losses, excess charges to group member |
| Capital gains group | 75% subsidiary + >50% held indirectly from top company | No-gain no-loss transfers; principal company can elect degrouping charges |
| Consortium relief | >5% owned by each consortium member; combined ≥75% | Each member can claim a proportion of the loss equal to its ownership percentage |
| Group payment arrangement | 51% group | Pay CT as a group to HMRC in instalments |
Inheritance Tax — Lifetime and Death Charges
Practice ACCA questions while you read
Questions graded, hints, and explained.
| Event | Rate / Rule |
|---|---|
| Nil rate band (NRB) | £325,000 (frozen to 2028) |
| Residence NRB (RNRB) | £175,000 on death if main residence passes to direct descendants |
| PETs (Potentially Exempt Transfers) | Fully exempt if donor survives 7 years; tapered relief 3–7 years |
| CLTs (Chargeable Lifetime Transfers) — on making | 20% tax on excess above NRB (if paid by donor); 25% if paid by donee |
| CLTs — on death within 7 years | Grossed up to 40%; credit for LT tax paid; taper relief applies 3–7 years |
| Trust periodic charge | 6% × (trust value − available NRB) × years ÷ 10 — every 10 years |
| Exit charge | Proportion of periodic charge based on years since last 10-year charge |
Double Tax Relief (DTR)
| Method | How it works |
|---|---|
| Credit relief (default) | Deduct lower of: overseas tax paid OR UK tax on overseas income |
| Exemption method | Some treaties exempt overseas income from UK tax entirely |
| Deduction method | Treat overseas tax as an expense — less beneficial than credit, but available if credit is unavailable |
Watch out:ATX advisory format: the examiner emphasises that marks are awarded for tax advice in context — "the effective rate for this client would be X% because..." — not just calculations. Include the tax impact, alternatives, and a recommendation in every answer.
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