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ICAEW ACA Tax Fundamentals — Information & Free Practice

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About ICAEW ACA Tax Fundamentals

ICAEW ACA Tax Fundamentals · GB

Key exam facts

Provider
ICAEW (Institute of Chartered Accountants in England and Wales) owns the ACA examination. Pearson VUE provides booking/test delivery, with test-centre and OnVUE remote-invigilation options.
Format
Computer-based knowledge examination: 40 multiple-choice, multi-part multiple-choice, multiple-response or numeric-entry questions and two scenario-based questions worth 10 marks each (20 marks combined). Test centre or OnVUE remote invigilation; on-screen tax tables provided.
Exam questions
Total questions: 42.
Time limit
2 hours of examination time, subject to approved access arrangements. The optional five-minute post-exam survey is separate from exam time.
Passing score
55% pass mark (percentage of examination marks, not a scaled-score threshold).
Exam fee
The latest published ICAEW fee schedule checked on 30 October 2026 lists GBP £99 per Certificate Level exam for 2026, payable on exam registration. The checked schedule does not list a 2027 amount; the 2026 price is not represented as a confirmed 2027 sitting fee. Annual student fees, tuition and materials are separate.

Topics covered

  • Objectives, types of tax and ethics (10%)

    • Objectives of digitalisation of tax
    • Objectives of taxation: economic, social justice and environmental issues; government tax opportunities and relative advantages
    • External influences on UK tax objectives and policies
    • Individuals, partnerships and companies: classification and taxation
    • Liability, application, responsible government bodies and scope of capital gains tax, corporation tax, income tax, inheritance tax, national insurance, stamp taxes and VAT
    • Budget cycle, tax year and sources of UK tax law and practice: legislation, case law, HMRC manuals, statements of practice, extra-statutory concessions and press releases
    • Five fundamental ethical principles in IESBA and ICAEW Codes and PCRT; threats and safeguards, professional scepticism and ethical conflict resolution in tax practice
    • Conflicts of interest, money laundering, tax avoidance and tax evasion

  • Administration of taxation (20%)

    • Tax records: retention method and retention periods for companies and individuals
    • PAYE and national insurance systems; employee PAYE tax codes
    • Self-assessment and digital tax accounts for companies and individuals
    • Reporting transactions subject to inheritance tax, VAT and stamp taxes
    • Due dates for tax returns and payments: companies, sole traders, partnerships, individuals, inheritance tax, VAT, employers' PAYE/NIC and stamp taxes
    • Interest and penalties for late or incorrect returns and tax payments
    • HMRC enquiry periods, taxpayers' appeal rights and disputes

  • Income tax and national insurance contributions (22%)

    • Sources of taxable and non-taxable income
    • Personal allowance according to individual circumstances, including marriage allowance
    • Assessable employment income for employees and directors, including taxable and exempt benefits
    • Badges of trade
    • Allowable and disallowable business expenditure and adjusted trading profits after plant and machinery capital allowances for sole traders and partnerships, using cash and accrual bases
    • Allocation of partnership tax-adjusted profits and each partner's assessable profits for a tax year
    • Assessable trading profits of commencing, continuing and ceasing unincorporated businesses
    • Total taxable income and income tax payable or repayable by individuals
    • Total national insurance contributions of employees, employers and self-employed individuals

  • Capital gains tax and inheritance tax (14%)

    • Chargeable and exempt persons, assets and disposals for capital gains tax
    • Chargeable gains and losses on asset disposals
    • Total taxable gains for an individual
    • Capital gains tax payable by individuals
    • Key principles of inheritance tax
    • Inheritance tax payable during an individual's lifetime
    • Death tax due on lifetime transfers
    • Value of the estate at death and inheritance tax due

  • Corporation tax and company gains (16%)

    • Company accounting periods
    • Associated companies and corporation tax payment dates
    • Allowable and disallowable expenditure and adjusted trading profits after plant and machinery capital allowances
    • Total taxable gains for a company
    • Taxable total profits and corporation tax for a UK-resident company with a period of account of 12 months or less

  • VAT and stamp taxes (18%)

    • Classification of straightforward supplies as exempt, zero-rated, standard-rated, reduced-rated at 5%, or outside the scope of VAT
    • Implications of reduced-rated, standard-rated, zero-rated and exempt supplies
    • VAT registration and deregistration conditions and time limits
    • Tax points for supplies of goods and services
    • Principles and calculation of monthly, quarterly or annual VAT payable or repayable by a taxable business
    • Alternative business VAT payment schemes and calculation of payable or repayable VAT
    • Transactions liable to Stamp Duty Land Tax, Stamp Duty Reserve Tax and Stamp Duty
    • Stamp tax calculations in straightforward transactions

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Computer-based knowledge examination: 40 multiple-choice, multi-part multiple-choice, multiple-response or numeric-entry questions and two scenario-based questions worth 10 marks each (20 marks combined). Test centre or OnVUE remote invigilation; on-screen tax tables provided.

How many questions are on the exam?

Total questions: 42.

How long is the exam?

2 hours of examination time, subject to approved access arrangements. The optional five-minute post-exam survey is separate from exam time.

What is the passing score?

55% pass mark (percentage of examination marks, not a scaled-score threshold).

How much does the exam cost?

The latest published ICAEW fee schedule checked on 30 October 2026 lists GBP £99 per Certificate Level exam for 2026, payable on exam registration. The checked schedule does not list a 2027 amount; the 2026 price is not represented as a confirmed 2027 sitting fee. Annual student fees, tuition and materials are separate.

Official sources and references

Confirm current exam arrangements with the exam provider.