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ACCA TX (UK) Examiner’s Report June 2025 – Key Insights and Advice

Georgina Roberts

What You Need to Know

Here's a useful summary from the June exam to help you avoid some common pitfalls and strengthen your exam technique.
NOTE: This examiner’s report should be used in conjunction with the published March/June 2025 sample exam which can be found on the ACCA Practice Platform.

Section A – Objective Test Questions

These questions cover a broad syllabus range, and candidates must prepare thoroughly. Key findings from the June exam include:

  1. NIC on Benefits: Understand how Class 1A NIC applies to benefits such as discounted gym memberships. Avoid adding pension contributions unless relevant.

  2. Capital Gains Reliefs: Gift holdover relief is only available on trading assets—not investment company shares.

  3. VAT Groups: Only 51%+ subsidiaries can be grouped. Zero-rated supply companies can be included.

  4. Penalties: Be precise with late filing penalties. For six months late, the penalty can reach £1,000, not just the basic £100.

Section B – Inheritance Tax (IHT) Scenarios

Inheritance tax questions require attention to detail and exemptions:

  • Lifetime Gifts: PETs and CLTs must be handled carefully. Include taper relief where appropriate.

  • Wedding Gifts: Deduct annual exemptions already used to avoid over-claiming.

  • Valuation: For unquoted shares, use the appropriate minority holding valuation (e.g. 70,000 x £4)

  • Exempt Gifts: Gifts made regularly from income and not affecting the donor’s lifestyle can be exempt.

Section C – Constructed Response

These questions aim to assess your deeper understanding and ability to apply the tax rules in context.

  1. Fiona Case – Trading Profits
    Candidates missed out by not spreading transition profits over five years.
    Don't ignore new basis period rules.

  2. Emily – VAT Registration
    Understand rolling 12-month VAT thresholds. If the threshold is crossed in September, registration is from 1 November.

  3. Garth – NIC and Allowances
    Be clear on NIC reporting: Real-time PAYE for Class 1 NICs.
    Class 4 NICs are paid via self-assessment (due 31 Jan 2026).
    The employment allowance only offsets employer Class 1 NICs.

  4. Chika – Trading Profits and Income
    Be cautious with capital allowances: split business/private use, adjust for part periods.
    Gilts: Accrued interest must be accounted for correctly.
    Room Rent: Joint income requires a 50% allocation.
    Taxable Income vs Tax Liability: Answer only what’s asked

  5. Flightpath Ltd – Loss Relief
    Distinguish between loss relief methods (carry back vs carry forward).
    Charitable donations must be deducted after loss relief.
    Capital allowances: Only include private use adjustments for sole traders, not companies.

Exam Technique Tips

*Answer the requirement only. Don’t waste time calculating tax liability when only taxable income is asked.
*Structure your answers using clear headings and label tax years.
*Watch for the simple marks – like using "0" where no adjustment is needed.

This examiner's report really reinforces the need for making sure you have covered the whole syllabus, refined your exam technique, and focused on attention to technical detail.

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