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The Big Picture Key Knowledge Income Tax: An Introduction

The document provides an introduction to income tax for individuals who are UK tax residents, detailing that they will be taxed on their worldwide income during the tax year from 6 April to 5 April. It includes a pro forma tax computation for the 2024/25 tax year, outlining the calculation of an individual's income tax liability. The material is intended for educational purposes and is subject to reproduction restrictions.

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36 views1 page

The Big Picture Key Knowledge Income Tax: An Introduction

The document provides an introduction to income tax for individuals who are UK tax residents, detailing that they will be taxed on their worldwide income during the tax year from 6 April to 5 April. It includes a pro forma tax computation for the 2024/25 tax year, outlining the calculation of an individual's income tax liability. The material is intended for educational purposes and is subject to reproduction restrictions.

Uploaded by

ayushayusha120
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCA TX | ExPress Notes The ExP Group

2
Income Tax – An
Introduction

The Big Picture


2
Income tax is a key area of the syllabus and will be examined.

Key Knowledge – Income tax: an introduction


Individuals who are UK tax resident will be taxed on their worldwide income. The period of assessment
is the tax year. The tax year runs from 6 April to 5 April. For example, the tax year 2024/25 runs from
6 April 2024 to 5 April 2025 (2023/24 runs from 6 April 2023 to 5 April 2024 and so on) All income of the
individual arising in the tax year will be assessed in the tax year.

Key Knowledge – pro forma tax computation 2024/25


This is the format to follow to calculate an individual’s liability to income tax. The pro-forma income tax
computation is: (note the numbers are for illustrative purposes)

INCOME TAX COMPUTATION – 2024/25 £

Non-savings income
Employment income 10,000
Trading income 23,000
Pension income 2,000
Property income 5,000
Savings income
Bank interest 1,000
Dividends 1,000
Total income 42,000
Less: Reliefs (2,000)
Net income 40,000
Less: Personal allowance (PA) (12,570)
Taxable income 27,430

Disclaimer: © 2025 The ExP Group. Individuals may reproduce this material if it is for their own private study use only. Written permission need s to be
obtained in advance if you are planning on using them on a training course you’re delivering. Reproduction by any means fo r any other purpose is prohibited.
These materials are for educational purposes only and so are necessarily simplified and summarised. Always obtain expert advi ce on any specific issue. Refer Page 5
to our full terms and conditions of use. No liability for damag e arising from use of these notes will be accepted by the ExP Group.

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