Personal Taxation (R03)

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 nominal pass mark is 65% (for more information on nominal pass marks please see here)
• The 2023 pass rate for this unit was 55.4%

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 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 credit awards for equivalent units

Course delivery

Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer or the unit is available as a pre-order.

Revision aids available ** Please check individual shop pages for availability dates **

The revision aids available for this unit are listed below. Find out more details.

• Key Facts Booklet
• Audio Revision
• Knowledge Checker
• E-learn 

Note for purchasing revision aids: please make sure you do not already have the revision aid(s) as part of any Enrolment plus purchase.   

Study material - editions available

2024-25 edition (applicable to exams sat 01 Sep 2024 to 31 Aug 2025)