How to pass AF1
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Now, I think you know already that the AF1 exam is not going to be a walk in the park… but with our structured study plan and guidance we can help to streamline, simplify, and get you the success you deserve.
So, what is it all about…?
The objective of AF1 is to develop in depth financial planning skills relating to personal tax and trusts. To pass the exam, you need to be able to apply your technical knowledge of tax and trusts to the case study scenarios provided. Prior knowledge of R03 (Personal Taxation), J02 (Trusts) and R05 (Financial Protection) is assumed.
The exam is 3 hours long. It is case study based with 3 compulsory questions. Section A consists of one case study, worth 80 marks. It will include a variety of tasks for you to complete, based on the information given in the case study. Section B consists of two shorter case studies and is worth a total of 80 marks. Again, it will include a variety of tasks. Between them, Sections A and B will cover off the majority of learning outcomes in the syllabus.
The nominal pass mark for AF1 is 55%. The average pass rate as declared by the CII for those completing the unit is currently 49%…yes quite low in comparison to other AF exams, as we mentioned above it is not going to be a walk in the park.
Questions, questions and more questions
You can learn a lot from past papers…here are some helpful points about the questions which we have put together based on our analysis of previous AF1 papers:
Calculation questions
One particular point of interest here is how the number of marks awarded for calculations has increased in the last few papers. In the July and October 2020 sittings, as well as the February 2021 sitting, they represented around a fifth of the paper.
In more recent sittings, the figure is more like a quarter. Good news for those of you for whom the calculation questions provide easy marks, not so good for those of you who struggle with this particular aspect of the paper.
State, outline, identify and list questions
Arguably, these are easiest questions on the paper if you’ve done your prep. They are the ones where, if you’ve memorised the correct list, you’ll be able to reel off the answers in the exam without having to give the actual question too much thought. The bad news is, on average, these types of questions account for just a sixth of the marks available.
Here’s an example most students would be happy to see in their AF1 paper:
‘State Andrew’s duties as a trustee under the Trustee Act 2000. (12 marks)’
The above question has appeared more than once in AF1. It requires no application of knowledge. It is sufficient to write out a list of the duties of a trustee. A relatively easy 12 marks – if you’re well prepared.
Describe, explain, compare, comment on, summarise
So, that must mean that the remaining 60% of the paper is likely to comprise of questions that we’d more typically associate with a Level 6 paper. These are the types of questions where you need to be able to demonstrate to the marker that you have a solid technical understanding and that you can apply this to a given situation.
Here’s a typical example: ‘Describe how Anna and Becca will be treated for Income Tax purposes if the trustees distribute income of £10,000 net to both of them.’
Here you are being tested not only on your understanding of the taxation of trusts (you need to be aware that the income paid to the beneficiaries of a discretionary trust carries a 45% tax credit), but also on the taxation of beneficiaries. In the case study, we’re told that Anna is a non-taxpayer and Becca is a basic rate taxpayer, so we also have to take these differences into account in our answer. This is the application of knowledge.
To pass AF1 you need to understand what the exam involves, how the questions are written and what the examiner is looking for in your answer. Practice, practice and practice again!
Join us!
Our Structured Study plan gives you everything you need to pass this tricky exam, from full (easy to read and digest) study notes (yes, honestly, they really are!). Video tutorials to bring your study to life and stop it being death by document reading (hallelujah). Online quizzes to aid retention and keep your brain switched on. Our all-important exam style questions for every module, every week to take the learning and APPLY it to exam questions. Revision weeks with mock exams and an expert led forum to ask questions. All tied together with our study timetable, we give you what to study, when to study it and all you have to do is stick with us…easy…maybe? You won’t know till you try.
Our study plan starts w/c 30th May to work towards you passing the September exam sitting.
Our customers have come to depend on us for our expertise, quality, and our unrivalled customer support. We earn your trust by being responsive, intuitive, and honest. We earn your respect by helping you to pass. Good luck and click below if you want to find out more, book your exam and view our timetable, or even better get in touch and we will be more than happy to help you.
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