CII R0 Diploma · R03
CII R03 Exam Guide - Personal Taxation (2025/26)
R03 tests UK personal taxation with relentless focus on calculations. You have just 60 minutes for 50 questions - roughly 72 seconds each - and most of those involve income tax, CGT or IHT arithmetic. Memorising 2025/26 allowances (£12,570 personal allowance, £3,000 CGT exempt amount, £325k NRB) is non-negotiable. Speed comes from doing calculations until they are automatic.
Format
50 questions - MCQs and multi-response, calculation-heavy
Duration
1 hour
Pass mark
65%
Study hours
40-60 hours
R03 syllabus breakdown
| Syllabus area | Weight | What it covers |
|---|---|---|
| Income tax | ~30% | Allowances, bands, dividend and savings allowances, Scottish rates. |
| Capital gains tax | ~20% | AEA, rates, BADR, hold-over and roll-over reliefs. |
| Inheritance tax | ~20% | NRB, RNRB, gifts, exemptions, taper relief, BPR/APR. |
| Residence and domicile | ~10% | SRT, deemed domicile, remittance basis. |
| Trusts taxation | ~10% | Bare, IIP, discretionary and disabled trusts. |
| Other taxes and admin | ~10% | NICs, stamp duty, HICBC, self-assessment deadlines. |
Recommended R03 study plan
- 1
Week 1-2
Income tax mechanics - allowances, bands, savings and dividend stacking. Drill 20 calculations a day.
- 2
Week 3
CGT rules, reliefs and disposal calculations.
- 3
Week 4-5
IHT - NRB, RNRB transferability, gift timelines and taper relief.
- 4
Week 6
Residence, domicile and trust taxation.
- 5
Week 7
Three full timed mocks. Identify your slowest calculation type.
- 6
Week 8
Targeted recap on weak areas and final timed mock.
R03 exam tips
- Always calculate income in order: non-savings → savings → dividends.
- Write the 2025/26 allowances down on scrap paper as soon as the timer starts.
- For IHT gift questions, draw a 7-year timeline before answering.
- If a calculation takes more than 90 seconds, flag and move on.
Common R03 mistakes
- Forgetting the personal allowance taper above £100,000.
- Applying the wrong CGT rate to residential property gains (24% from April 2024).
- Missing the £500 dividend allowance for 2025/26 (not £1,000).
- Confusing the order of gifts when calculating taper relief.
Key topics covered in R03
Related R03 topics across the R0 syllabus
CII R0 modules overlap heavily. Use these cross-links to follow a topic from one paper into the next - exactly how the CII tests them in practice.
Pensions tax - Annual Allowance & LSA (R04)
R03 income tax bands feed directly into R04 pension contribution and PCLS calculations.
IHT planning with protection in trust (R05)
R03 IHT rules underpin R05 trust structures used to keep life cover outside the estate.
Tax wrappers and CGT on investments (R02)
R02 covers the wrappers (ISA, GIA, bond) where R03 CGT and dividend tax apply.
Tax planning in the case studies (R06)
Every R06 sitting requires applied income tax, CGT and IHT calculations from R03.
R03 exam FAQs
Is R03 the hardest CII R0 exam?
R03 has the highest fail rate among R01 - R05 because it is dense with calculations in only 60 minutes. With targeted calculation practice, it is very passable.
What allowances do I need to memorise for R03?
Personal allowance £12,570, dividend allowance £500, CGT AEA £3,000, IHT NRB £325,000, RNRB £175,000 - all for the 2025/26 tax year.