I’m delighted to be able to share that I successfully passed R03.
Passing R03 Personal Taxation was a result of a lot of work and I thought it worth sharing some thoughts about the exam in case the exam is in your future.
Do Not Underestimate The Size
The R03 Module on Personal Taxation is only 10 credits of the 100 credit Diploma. But don’t be fooled. If you’re fresh to the subject, as I was, then it will take just as long as R02 Investments, if not longer, despite R02 being worth double the credits.
After passing R02 quite comfortably back in October 2014, I thought I could squeeze in R03 before Christmas. Although I got very close to passing (missing out by one mark), it would take a few more months of learning to really understand the content enough to answer complex questions that combined various tax topics.
There are 4 learning outcomes for the module:
- Understanding the Tax System as relevant to the needs and circumstances of individuals and trusts
- Analyse the taxation of investments as relevant to the needs and circumstances of individuals and trusts
- Analyse the role and relevance of tax in the financial affairs of individuals and trusts
- Apply the knowledge of personal taxation to the provision of investment advice
The exam is similar to R02 in that you will be using your calculator frequently. Personal tax computations are not too difficult but NI requires going over a few times given the difference that contracting in and out can make, and the tax implications for employers and employees differ.
Capital Gains tax is relatively straightforward but you must remember to consider chattels; wasting assets and the implications of being absent from your primary residence amongst other things.
In my experience, Inheritance Tax was featured a lot in the questions, especially how domicile-status can affect it. An understanding of how trusts are treated is another hot topic that came up time and again.
Whilst you can’t ignore it, in my experience I wasn’t tested much on corporation tax or self assessment.
Can you add anything to this? Be sure to join the discussion by leaving a comment below this post.
This post was written by Adam, a Financial Services Apprentice (and aspiring financial planner) based in York, UK. Read more here. To follow his progress just put your name and email in the boxes below and join the Financial Planning Academy