ACCA TX Cheat Sheet: Income Tax, NIC, Corporation Tax and CGT

ExpertMinds Editorial·3 June 2026·9 min read

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Key fact:TX exam: 3-hour CBE · 100 marks · Sections A, B (OT) · Section C (constructed response, 50 marks). Tested on Finance Act of the prior year. Always confirm which Finance Act applies to your sitting date.

Income Tax Computation Structure

Step	Item
1	Non-savings income (employment, trading, rental) — taxed first
2	Savings income (interest) — taxed second
3	Dividend income — taxed last
4	Less: Personal allowance (£12,570) — reduced by £1 for every £2 of ANI over £100,000
5	Apply tax rates: Basic rate (20%), Higher rate (40%), Additional rate (45%)
6	Basic rate band: £0–£37,700 (extended by gross Gift Aid donations and pension contributions)

Employment Income — Benefits in Kind

Benefit	Taxable amount
Company car	List price × appropriate CO₂ percentage
Car fuel benefit	Fixed figure (£27,800 for 2024/25) × CO₂ percentage
Living accommodation	Annual value + (if cost > £75,000): (cost − £75,000) × official rate of interest
Beneficial loan	(Loan balance × Official rate) − Interest actually paid; exempt if loan ≤ £10,000
Private medical insurance	Employer's cost of providing the benefit
Exempt benefits	Workplace nursery, cycle to work, first £500 trivial benefits, mobile phones (one per employee)

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National Insurance Contributions

Type	Who pays	Rate / Threshold
Class 1 Primary (employee)	Employee	8% on earnings between Primary Threshold (£12,570) and Upper Earnings Limit (£50,270); 2% above UEL
Class 1 Secondary (employer)	Employer	13.8% on earnings above Secondary Threshold (£9,100); no upper limit
Class 2	Self-employed	Flat rate £3.45/week if profits ≥ small profits threshold
Class 4	Self-employed	6% on profits £12,570–£50,270; 2% above (2024/25 rates)

Capital Gains Tax

Item	Rule
Annual exempt amount	£3,000 (2024/25)
Basic rate taxpayer CGT rate	18% on residential property; 10% on other assets
Higher rate taxpayer CGT rate	24% on residential property; 20% on other assets
BADR (Business Asset Disposal Relief)	10% on qualifying gains up to £1m lifetime limit
Part disposal proceeds	A / (A + B) × cost, where A = proceeds, B = market value of remainder
Chattels exemption	Gains exempt if proceeds ≤ £6,000; marginal rule if proceeds £6,000–£15,000

Watch out:TX examiner trap — extending the basic rate band: pension contributions (gross) and Gift Aid donations (grossed up) extend the basic rate band. Forgetting this causes a wrong tax calculation for higher earners who make pension contributions. Always gross up pension and Gift Aid before applying tax bands.

Test TX with full income tax computations

TX Section C questions require full workings. Practise complete tax computations to build accuracy.

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Income Tax Computation Structure

Step	Item
1	Non-savings income (employment, trading, rental) — taxed first
2	Savings income (interest) — taxed second
3	Dividend income — taxed last
4	Less: Personal allowance (£12,570) — reduced by £1 for every £2 of ANI over £100,000
5	Apply tax rates: Basic rate (20%), Higher rate (40%), Additional rate (45%)
6	Basic rate band: £0–£37,700 (extended by gross Gift Aid donations and pension contributions)

Employment Income — Benefits in Kind

Benefit	Taxable amount
Company car	List price × appropriate CO₂ percentage
Car fuel benefit	Fixed figure (£27,800 for 2024/25) × CO₂ percentage
Living accommodation	Annual value + (if cost > £75,000): (cost − £75,000) × official rate of interest
Beneficial loan	(Loan balance × Official rate) − Interest actually paid; exempt if loan ≤ £10,000
Private medical insurance	Employer's cost of providing the benefit
Exempt benefits	Workplace nursery, cycle to work, first £500 trivial benefits, mobile phones (one per employee)

Practice ACCA questions while you read

Questions graded, hints, and explained.

National Insurance Contributions

Type	Who pays	Rate / Threshold
Class 1 Primary (employee)	Employee	8% on earnings between Primary Threshold (£12,570) and Upper Earnings Limit (£50,270); 2% above UEL
Class 1 Secondary (employer)	Employer	13.8% on earnings above Secondary Threshold (£9,100); no upper limit
Class 2	Self-employed	Flat rate £3.45/week if profits ≥ small profits threshold
Class 4	Self-employed	6% on profits £12,570–£50,270; 2% above (2024/25 rates)

Capital Gains Tax

Item	Rule
Annual exempt amount	£3,000 (2024/25)
Basic rate taxpayer CGT rate	18% on residential property; 10% on other assets
Higher rate taxpayer CGT rate	24% on residential property; 20% on other assets
BADR (Business Asset Disposal Relief)	10% on qualifying gains up to £1m lifetime limit
Part disposal proceeds	A / (A + B) × cost, where A = proceeds, B = market value of remainder
Chattels exemption	Gains exempt if proceeds ≤ £6,000; marginal rule if proceeds £6,000–£15,000

Test TX with full income tax computations

TX Section C questions require full workings. Practise complete tax computations to build accuracy.