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Principles of Taxation

The Principles of Taxation exam has 42 questions. 40 questions (80% of the overall marks) are presented in the form of multiple-choice, multi-part multiple-choice, multiple-response or numeric entry. Two questions are scenario-based (worth 20% of the overall marks, 10% each), each question will cover a single syllabus area: income tax and NIC, and corporation tax.

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Exam guidance

We are here to support you throughout your ACA journey to ensure you have everything you need for your upcoming exam, from exam resources to free and confidential wellbeing support from CABA. Ensure you are fully prepared by reading our exam guidance prior to your exam.

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Important information for exams 2022

Annual Investment Allowance (AIA) - £1 million temporary cap extension until 31 March 2023

The AIA was due to revert from £1 million to £200,000 on 1 January 2022.

On 27 October 2021 the Chancellor, in the Budget speech, announced an extension to the temporary £1 million cap. The AIA will now remain at £1 million until 31 March 2023 and are expected to revert back to £200,000 on 1 April 2023

ICAEW tax learning materials were written before this announcement and they use 1 January 2022 as the date at which the AIA changes to £200,000.

The following approach will be adopted in the ICAEW exams during 2022:

2022 exam questions assume that the AIA is £200,000 pa. Students should answer questions in line with the examples and questions in the Principles of Taxation learning materials ie using the £200,000 cap. The learning materials include only accounting periods beginning on/ after 1 January 2022 and use the AIA cap of £200,000 pa.

Important information for exams 2023

Following the Chancellor’s announcements on 23 September, we can update you as follows in relation to materials and approach for ICAEW Tax exams during 2023.

All students will expected to answer 2023 exam questions based on the information in the 2023 learning materials.

Principles of Taxation will be tested based on the learning materials content and the on-screen tables, and students should answer based only on these.

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