J01 Exam: Personal Taxation
To achieve QCF level 4 and qualify for financial adviser status, a student must receive the Diploma in Financial Planning or equivalent. A total of 140 credits must be obtained; 80 of these must be at diploma level (level 4) or higher. The J01 exam is on Personal Taxation, which—after December 2012—is one of the mandatory subjects required for authorisation.
The exam covers the fundamental structure of the tax system in the United Kingdom, the basics of the self-assessment process, the application of income tax to specific types of income and the application of National Insurance contributions to employed and self-employed income. It also covers Capital Gains Tax in relation to an individual’s gains, the rules relating to Inheritance Tax and how a person’s UK tax liability is affected by his residence and domicile status.
The J01 exam is worth 20 credits, with a recommended 100 study hours. This is a 2-hour written exam, which is held on set dates during the year, at test centres throughout the United Kingdom. The exam consists of 15 compulsory written short-answer questions.
Brand Financial Training offers several study aids that can help candidates pass the J01 exam first time round. Mock exam papers help you to familiarise yourself with the types of questions that come up in the exam. While the Brand Financial Training exam questions are not exact copies of the CII’s mock exam papers, they are written in the same style. The Calculation Workbook consists of over 80 pages of calculations, in line with the J01 syllabus, and provides step-by-step answers and detailed explanations. The mock exam papers and Calculation Workbook are available in PDF format, allowing candidates to receive them instantly and work through them at their own pace. Brand Financial Training’s free newsletter is distributed each month and is packed with tips and exam updates that help candidates pass any of the diploma exams.
The Financial Services Authority advises financial advisers and planners to carry on with their training and development beyond the required level of QCF level 4. If you want to be able to use the title ‘Chartered Financial Planner’, it is necessary to obtain 290 credits, of which a minimum of 120 must be at advanced diploma level and 40 must be at diploma level or higher. The J01 exam can be taken as part of this process.
Information in this article is correct as at July 2011