Module details for Taxation


This module introducing the main principles of UK taxes for corporate bodies and individuals. The scope of taxes includes Corporation tax, Capital tax, personal taxation (whether as an employee, sole trader or partner in an unincorporated business), National Insurance, Inheritance taxes and Value Added Tax (VAT).


This module aims to advance students' understanding of the UK taxation system and the impact of various taxes; including corporation tax, individual’s taxation, the interaction between taxes; tax avoidance; overseas aspects of personal and corporate taxes. Additionally, the scope of study involves employee taxation (National Insurance) and sales tax (VAT).

Learning Outcomes

By the end of this module the student should be able to:

1.  demonstrate an understanding of the structure and administration of the UK tax system as it affects individuals and incorporated businesses;

2.  prepare tax computations showing trading profits and losses for an unincorporated business. Compute an employer’s liability for National Insurance in respect of the employee and employer.

3.  demonstrate an understanding of Value Added Tax; and when VAT is chargeable and recoverable by a business;

4.  prepare capital gains tax and inheritance tax computations; understand and calculate the effect of ordinary residence and domicile on UK tax liabilities;

5.  prepare computations showing the profits chargeable to corporation tax for UK companies;

6.  prepare computations showing the offset of losses in UK companies and effectively apply the rules available within related Groups companies.

Indicative Content

1 Taxation

A general introduction to taxation. Appreciation of the administrative procedures followed by the tax authorities in assessing and collecting taxes.

2 Trading Income

The nature of business profits assessable under the UK tax system. The computation of taxable profits and basis of assessment. The calculation of capital allowances. Setting-off of income tax losses for businesses run by sole traders and partnerships.

3 Taxation of the Individual

Independent taxation. Sources of income including benefits in kind. Personal allowances and reliefs. Losses arising from property income. An employee’s liability for National Insurance contributions.

4 Value Added Tax

Principles, outputs and inputs, exemptions, zero rated, partly exempt businesses.

5 Corporation Tax and Corporate groups

Compilation of income assessable including capital gains. Rates of tax. Financial years and payment of tax. The effects of close company status.The use of losses in a single company context. The treatment of groups of companies and consortia. The application of capital gains tax provisions on transactions of companies.

6 Management of Personal Taxation

Calculation of capital gains/losses and liabilities arising on disposals. Principles of inheritance tax and treatment of liabilities arising on lifetime gifts and on death. Inter-relationship of taxes and identification of opportunities to minimise or defer taxation liabilities.

7 Tax planning and Overseas Taxation

Inter-relationship of taxes, planning, anti-avoidance and tax management. Overseas aspects of personal and corporate taxation.

Teaching and Learning Work Loads

Teaching and Learning Method Hours
Lecture 12
Tutorial/Seminar 24
Practical Activity 0
Assessment 60
Independent 104
Total 200

Guidance notes

SCQF Level - The Scottish Credit and Qualifications Framework provides an indication of the complexity of award qualifications and associated learning and operates on an ascending numeric scale from Levels 1-12 with SCQF Level 10 equating to a Scottish undergraduate Honours degree.

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.


We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2021/22 , and may be subject to change for future years.