Personal Taxation (R03) develops your knowledge and understanding of the UK taxation system, and the ability to analyse the taxation treatment of individuals and trusts during the investment advice process.
Tax can make a substantial difference to the returns on savings, investments and many business transactions. Paying more tax than necessary can make all the difference as to whether an investment is worthwhile or whether it should be avoided. A general knowledge of tax is important for all financial advisers, especially:
- The ability to calculate the tax liability on the total of an individual’s income and gains from all sources, taking into account allowances and deductions. This will tell you what rate of tax an individual will pay on the income and chargeable gains from any investments you recommend.
- Knowledge of the rules for taxing the income and gains from the main types of investment.
- An understanding of inheritance tax (IHT) in order to advise clients on reducing the impact of tax on the estate they pass on to their heirs.
We start by looking at the UK tax system as relevant to the needs and circumstances of individuals and trusts. We then look at the taxation of investments as relevant to the needs and circumstances of individuals and trusts and the role and relevance of tax in the financial affairs of individuals and trusts. Finally, we look at how to apply the knowledge of personal taxation to the provision of investment advice.
Building a successful career in personal finance
Personal Taxation (R03) is a core unit for the Diploma in Regulated Financial Planning which meets the FCA’s qualification requirements for retail investment advisers. This unit is relevant for paraplanners, technical consultants and those in financial planning support roles. It is also relevant for those seeking additional CII credits towards completion of the Diploma in Financial Planning. those who do not hold additional CII credits counting towards completion of the Diploma in Financial Planning.
Purpose
At the end of this unit, candidates will have investigated the:
- basic structure of the UK tax system;
- main taxes on income and capital that may be charged on individuals and trusts, the self assessment system and how tax liabilities are computed;
- taxation of investments as relevant to the needs and circumstances of individuals and trusts.
Assessment
- 1 hour exam
- 50 multiple choice questions
- The standard pass mark is 65% (for more information on standard pass marks please see here)
- The 2024 pass rate for this unit was 60.1%
Units treated as equivalent
Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of CII credits.
If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.
Find out more about CII credit awards for equivalent units
Revision aids available
The revision aids available for this unit are listed below. Find out more details.
- Revision Extra: digital course that includes 11-hour long video support covering the syllabus, plus practice questions (please note that this is not included as part of Enrolment plus)
- Key Facts Booklet: summarises the key information contained in the study text
- Knowledge Checker: multiple-choice questions to test your understanding of the study text
- E-learn: online tutorial that provides interactive study and an assessment tool
- Audio Revision: covers the key elements of each subject in MP3 audio recordings and lasts around 3–5 hours
Note for purchasing revision aids: please make sure you do not already have the revision aid(s) as part of any Enrolment plus purchase.
