Test Questions Flashcards
Question 1 out of 20:
A husband and wife married in 1992:
a.Can each select domicile of the other if they wish
b.Share UK domicile if the husband was UK domiciled at marriage
c.Have their own domicile
d.Share UK domicile if the wife was UK domiciled at marriage
c. Have their own domicile
Question 2 out of 20:
Where an individual does not meet the ‘automatic test’ of residency for tax purposes, they will be tested against the:
a. Habitual determination test
b. Adequacy test
c. Sufficient ties test
d. Regular and habitual test
c. Sufficient ties test
Question 3 out of 20:
Bob gives £400,000 in 2021/22 into a Discretionary Trust. Apart from using his annual £3000 allowance, this is his only transfer. What tax may be due?
a. £75,000
b. Nil
c. £30,000
d. £15,000
d. £15,000
Question 4 out of 20:
Bob is UK domiciled but not UK resident. He dies in 2021/22 leaving £1,000,000 in gilts and £325,000 of other assets. How much IHT is due?
a. £114,000
b. £400,000
c. £274,000
d. Nil
d. Nil
Question 5 out of 20:
What rate of quick succession relief applies on death three and a half years after the initial transfer?
a. 40
b. 20
c. 0
d. 60
a. 40
Question 7 out of 20:
Deano makes a part disposal of land. The value of the land disposed of is £100,000 and the value of the part kept is £250,000. The original cost was £170,000. What is the deemed purchase cost of the part sold?
a. £48,571
b. £46,229
c. £140,000
d. £121,428
a. £48,571
(100,000 / (250,000+100,000)) x 170,000
Question 8 out of 20:
Ginny has bought US$7000 in an attempt to make money from the fluctuating currency market. For CGT purposes:
a. This is exempt
b. This is exempt unless the gain is more than 10%
c. This is chargeable
d. This is exempt unless the gain is more than 20%
c. This is chargeable
As the purpose was not personal but to make money, this is a chargeable event
Question 9 out of 20:
Civil Partners are treated the same way as married people for CGT purposes
a. Only where the partnership is registered post December 2011
b. In no cases
c. Only where the partnership is registered prior to December 2011
d. In all cases
d. In all cases
Question 12 out of 20:
Matt makes a Chargeable Lifetime Transfer on 1st July 2021. When must tax usually be paid?
a, 30th April 2022
b. 5th April 2022
c. 31st July 2022
d, 5th July 2022
a, 30th April 2022
Tax due after 6 months, when transfer made between 5th April and 1st October, tax is due following 30th April
Question 15 out of 20:
No charge is made under Pre Owned Asset Tax where the cash value of benefits is less than:
a. £5,000
b. £4,800
c. £2,500
d. £3,600
a. £5,000
Question 17 out of 20:
For how long must a business interest have been owned to qualify for IHT Business Relief?
a. 2 years
b. 1 year
c. 3 years
d. 7 years
a. 2 years
Question 18 out of 20:
Mabel married Arthur in 1952. She was, at the time, Canadian domiciled while Arthur was UK domiciled. She is now:
a. UK domiciled
b. Canadian Domiciled
c. Dual UK and Canadian domiciled
d. Able to select either UK or Canadian domicile
a. UK domiciled
Question 19 out of 20:
How much can Win and Fred give their grandson on marriage as an exempt transfer for IHT?
a. £5,000
b. £7,500
c. £15,000
d. £12,000
a. £5,000
Question 1 out of 20:
Karl lives in rented accommodation. He buys a house to develop and sell on. He does not live in the house:
a.The gain is automatically exempt under the Enterprise Act 2003
b.He cannot claim principle private residence relief for CGT
c.He can claim sole property relief instead of principle private residence relief
d.He can claim principle private residence relief as he does not own another property
b.He cannot claim principle private residence relief for CGT
Question 3 out of 20:
What top rate of tax is due at the time of making a Chargeable Lifetime Transfer of £400,000 in 2021/22 assuming no other gifts in the last 7 years?
a.20%
b.40%
c.0%
d.10%
a.20%
Question 4 out of 20:
What rate of Business Relief will apply to a holding of £1,000,000 in a company quoted on the Alternative Investment Market where this has been held for two and a half years prior to death?
a.25%
b .Nil
c.50%
d.100%
d.100%
Question 6 out of 20:
In order to benefit from the transfer of Nil Rate Band for IHT purposes, the second spouse must have died after:
a.6-Apr-08
b.5-Mar-08
c.8-Oct-07
d.5-Mar-07
c.8-Oct-07
Question 7 out of 20:
Which of the following is NOT a gift with reservation for IHT?
a.Giving away a freehold interest in land but keeping a lease granted 2 years before the gift
b.Giving away money but not the interest from the money
c.Giving away a house but remaining living there
d.Giving a painting to a son living next door
d.Giving a painting to a son living next door
Question 8 out of 20:
Dean was given an asset by his brother in March 2003. No money changed hands. He is now selling the asset. For CGT purposes the base cost is:
a.The market value at the date he acquired it LESS the costs of disposal
b.The market value at the date the original owner acquired it, PLUS purchase costs
c.The market value at the date his brother acquired it
d.The market value at the date he acquired it
d.The market value at the date he acquired it
Question 11 out of 20:
Danny emigrates to Australia. He keeps UK domicile for:
a.Life
b.7 years
c.3 years
d. 5 years
d. 5 years
Question 12 out of 20:
The adding back of previous gifts when calculating death IHT is know as:
a. The accumulation principle
b. The cumulation principle
c.The PET principle
d. The transferor principle
b. The cumulation principle
Question 15 out of 20:
Nicky bought a painting in June 1976. For CGT purposes, the base value is:
a. The value at 6th April 1998
c. The value at 5th April 1982
c. The value at 31st March 1982
d. The value at June 1976 rolled forward with inflation
c. The value at 31st March 1982
Question 16 out of 20:
Ant makes a Chargeable Lifetime Transfer of £200,000. Three years later he makes a PET of £1m. After a further 5 years he dies leaving nothing of value. For IHT:
a. Tax will be due on £1,000,000 less the Nil Rate Band and with taper relief applicable
b. Tax will be due on £1,200,000 but with taper relief applicable
c. There is no tax due
d. Tax will be due on £1,200,000 less the Nil Rate Band and with taper relief applicable
d. Tax will be due on £1,200,000 less the Nil Rate Band and with taper relief applicable
Question 17 out of 20:
In respect of CGT, losses:
a.Can be carried forward but must be used AFTER losses from earlier years
bCan no longer be carried forward
c.Can be carried forward but must be used BEFORE losses from earlier years
d.Can be carried forward and offset with gains from earlier years according to the individual’s wishes
c.Can be carried forward but must be used BEFORE losses from earlier years
Question 18 out of 20:
Alan comes to the UK from the USA to take up a 7 year full-time teaching post. He will be UK resident:
a.Only if he buys a UK property or marries a UK resident
b.After 5 years
c.From the start of the next tax year
d.From arrival
d.From arrival
Question 19 out of 20:
Jack is UK domiciled but his wife Sunita is not. When Jack dies leaving an estate of £1m, how much of the estate (aside from the nil rate band) is exempt for IHT?
a.£55,000
b.£325,000
c.£1,000,000
d.Nil
b.£325,000
Question 20 out of 20:
For how long does a gift with reservation remain in the donor’s estate?
a.14 years
b.It is always in the estate
c.7 years
d.It is immediately outside of his estate
b.It is always in the estate
Question 1 out of 20:
Which of the following is NOT an exempt transfer for IHT purposes?
a. £100,000 gift to the Labour Party
b. £1,000,000 to the Red Cross
c. £10,000 gift from Louis to his son on his wedding
d. £20,000 to the National Trust
c. £10,000 gift from Louis to his son on his wedding
Question 2 out of 20:
Which of the following is not usually taken as evidence of employment rather than self employment when looking at National Insurance?
a. Work done is an integral part of the business
b. Work is for more than six months
c. A contract of service
d. Substantial control over when and how the work is done
b. Work is for more than six months
Question 4 out of 20:
When calculating an individual’s total income what should be deducted?
a. Bank and Building Society Interest
b. Pension Contributions
c. Personal Allowance
d. None of these
d. None of these
Question 6 out of 20:
A citizen of the Republic of Ireland receives a personal allowance for UK income tax
a. Only if he is over 65
b. By special concession after 3 years in the UK
c. In no instances
d. Automatically
d. Automatically
Question 8 out of 20:
Which of the following will not receive credit toward National Insurance Contributions?
a. Someone who is unemployed and claiming benefits
b. Someone who is in full time training
c. An unemployed person
d. Someone who is self employed but not earning enough to pay class 2 contributions
d. Someone who is self employed but not earning enough to pay class 2 contributions
Question 9 out of 20:
Within how long of starting self employment must the individual notify HMRC for National Insurance Contribution purposes?
a. 2 months of the end of the month in which the self employment starts
b. 3 months of the start of the month in which the self employment starts
c. 3 months of the end of the month in which the self employment starts
d. 2 months of the start of the month in which the self employment starts
c. 3 months of the end of the month in which the self employment starts
Question 1 out of 20:
James is resident in the UK for 30 days in 2021/22, having previously not been resident. Will he be resident?
a. He will be resident if he has 4 or more ‘UK ties’
b. He will be automatically NOT resident
c. He will be automatically resident
d. He will be resident if he has 3 or more ‘UK ties’
b. He will be automatically NOT resident
Question 3 out of 20:
Alan comes to the UK from the USA to take up a 7 year full-time teaching post. He will be UK resident:
a. Only if he buys a UK property or marries a UK resident
b. After 5 years
c. From arrival
d. From the start of the next tax year
c. From arrival
Question 4 out of 20:
For CGT purposes, a Universal rebasing election:
a. Revalues all assets held at 31st March 1982 using their 31st March 1982 value
b. Revalues all assets whenever bought to a date elected by the member
c. Revalues all assets to the 5th April 1998 value for taper relief purposes
d. Revalues all assets as at the date of the election and sets new base values for the future - tax may be due
a. Revalues all assets held at 31st March 1982 using their 31st March 1982 value
Question 6 out of 20:
Holdover relief for CGT is given where:
a. Both parties to the transaction claim it
b. The Revenue deem it appropriate
c. The recipient claims it
d. The donor claims it
a. Both parties to the transaction claim it
Question 9 out of 20:
Sharon dies leaving an estate of £2,000,000. Half goes to charity and half to her nephew.
a. The Nil Rate Band does not apply as the gift to charity is greater than the Nil Rate Band
b. The nephew gets the full Nil Rate Band for IHT
c. The charity and the nephew each get half of the Nil Rate Band for IHT
d. The charity gets the full Nil Rate Band for IHT
b. The nephew gets the full Nil Rate Band for IHT
Question 11 out of 20:
Bill and Ben are in a same sex relationship but are NOT married or in a registered civil partnership. They each own a property:
a. They can only claim one principle private residence and HMRC will decide which is their main residence
b. They can claim the special exemption under the Gender recognition and discrimination act 2003
c. They can elect for only one of the properties to be their principle private residence and will receive the relief on this property
d. They can each claim principle private residence relief for CGT purposes
d. They can each claim principle private residence relief for CGT purposes
Question 12 out of 20:
When an asset is sold, the date of disposal for Capital Gains Tax is:
a. The date the money is exchanged
b. The date the sale is fully completed
c. The date of the contract for sale
d. The date the sale is started
c. The date of the contract for sale
Question 13 out of 20:
Holly dies leaving an estate of £1,000,000. She did not make any lifetime transfers. How many £3000 annual exemptions may be deducted from her death estate?
a. One per year from the age of 18 to her death
b. Two
c. One
d. None
d. None
Question 16 out of 20:
How many potential UK ties form part of the test for UK residence?
a. 3
b. 7
c. 5
d. 9
c. 5
Question 2 out of 20:
Which of the following is NOT a deductible expense for CGT purposes?
a. Repair Costs
b. Agents Costs
c. Legal Costs
d. Stamp Duty
a. Repair Costs
Question 5 out of 20:
Mike dies in 2021/22 leaving a UK estate of £1m. Half of this is a clothing company he has owned for 20 years. He also leaves a Spanish villa worth £325,000. He has no spouse and leaves everything to his next door neighbour. What Inheritance Tax will be due?
a. £400,000
b. £514,000
c. £286,000
d. £200,000
d. £200,000
Feedback: The clothing company should qualify for business relief and is therefore not taxed. This leaves an estate of £825,000. The Nil Rate Band is £325,000. The remaining £500,000 is taxed at 40%. He would not be eligible for residence nil rate band as he does not leave his estate to a direct descendent.
Question 6 out of 20:
Which of the following is NOT a form of Lifetime Transfer for IHT purposes?
a. Exempt Transfer
b. Capital Reduction Transfer
c. Chargeable Lifetime Transfer
d. Potentially Exempt Transfer
b. Capital Reduction Transfer
Question 8 out of 20:
What rate of Business Relief will apply to a holding of £1,000,000 in a company quoted on the Alternative Investment Market where this has been held for 18 months prior to death?
a. Nil
b. 25%
c. 100%
d. 50%
a. Nil
Must be held for at least 2 years
Question 1 out of 15:
Jenny invested £200,000 into a non-qualifying investment bond. She has taken 5% per annum as “income” and has received a total of £70,000 in this manner. She now surrenders the bond for £300,000. How much more tax will be due if she is a Higher Rate taxpayer? (Ignore any potential impact on her personal allowance)
a. £20,000
b. £34,000
c. £22,000
d. £37,400
b. £34,000
Tax due on £170,000 at 20%
Question 3 out of 15:
Jeff dies in October 2020, leaving a house valued at £2.4m and other assets of £1.2m. He leaves everything to his daughter. He lived with his partner Mary for 40 years until her death but was never married. What IHT will be due?
a. £1,310,000
b. £1,230,000
c. £1,140,000
d. £1,060,000
a. £1,310,000
Due to size of estate only £325,000 is available, and tax of 40%
Question 9 out of 15:
Danny emigrates to Australia. He keeps UK domicile for:
a. 7 years
b. Life
c. 5 years
d. 3 years
c. 5 years
15 out of last 20 years
Question 10 out of 15:
Multiple Response Question:
James and Sean are married. They own a large property as joint tenants. This is their main residence. The property has a basement that they let to a student couple. They estimate that the basement accounts for 25% of the total space within the property. They are about to sell the property and estimate that the overall gain will amount to £400,000. They have asked whether they will be liable to Capital Gains Tax and, if so, how this would work. They are both basic rate taxpayers. They should be aware that:
a. As they own the property as joint tenants, any gain will be split equally between them for tax purposes
b. Any taxable amount may be reduced by £40,000
c. The rates of tax due on residential property are 8% higher than the rates due on non-residential property
d. The rate of tax applicable to the gain will be determined by their other income in the tax year
a. As they own the property as joint tenants, any gain will be split equally between them for tax purposes
c. The rates of tax due on residential property are 8% higher than the rates due on non-residential property
d. The rate of tax applicable to the gain will be determined by their other income in the tax year
Question 11 out of 15:
OLAB is the business for UK life offices with who?
a. Policyholders who live in set states in the USA
b. Policyholders who live outside of the EEA
c. Policyholders who live outside the UK
d. Policyholders who live in the EEA states
c. Policyholders who live outside the UK
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Tina and John have two children: Ethan, who was born in March 2009, and Chloe, who was born in July 2011. Assuming that Ethan’s Child Trust Fund has not been transferred to a Junior ISA, what is the maximum investment that can be made into Junior ISAs for the children in 2021/22?
Select one:
a. £13,500.
b. £27,000.
c. £9,000.
d. £18,000.
c. £9,000.
Registered traders will typically submit VAT returns and pay any VAT due every:
Select one:
a. month.
b. six months.
c. three months.
d. year.
c. three months.
At a board meeting on 10 January a company decides to pay its managing director a bonus of £25,000. This is documented in the meeting minutes, which are distributed to the board members on 20 January. The bonus is paid on 2 February and is ratified formally at the company’s AGM on 1 March. On what date will PAYE be operated in respect of the bonus?
Select one:
a. 2 February.
b. 20 January.
c. 1 March.
d. 10 January.
d. 10 January.
Angus invested £30,000 into a non-qualifying UK life assurance investment bond on 1 June 2016. He took a partial withdrawal of £4,000 on 1 November 2018 and a further partial withdrawal of £2,000 on 1 September 2020. He surrendered the bond in November 2021 for £32,000. What chargeable gain, if any, did Angus make on his investment in 2021/22?
Select one:
a. £2,000.
b. £8,000.
c. Nil.
d. £4,000.
b. £8,000.
Dolomite Ltd made trading profits of £120,000 and a chargeable capital gain of £60,000 from the sale of a machine. What tax or taxes are paid by the company in the 2021/22 tax year?
Select one:
a. Corporation tax of £22,800 on the profit, and capital gains tax of £11,400 on the chargeable gain.
b. Income tax of £22,800 on the profit, and capital gains tax of £13,524 on the chargeable gain.
c. Income tax of £24,000 on the profit, and corporation tax of £12,000 on the chargeable gain.
d. Corporation tax of £34,200 in total on both the profit and the chargeable gain.
d. Corporation tax of £34,200 in total on both the profit and the chargeable gain
Natasha has shares in a company which she sells on 1 September 2021. If she does not want to create a gain or loss for capital gains tax purposes, she must repurchase the shares by:
Select one:
a. 14 October 2021.
b. 14 September 2021.
c. 30 September 2021.
d. 30 October 2021.
c. 30 September 2021.
Oliver, who is 45, has total earned income of £116,210 for 2021/22. How much more income tax will Oliver pay in 2021/22 compared to someone of the same age with total earned income of £100,000?
Select one:
a. £7,387.
b. £8,105.
c. £6,484.
d. £9,726.
d. £9,726.
Jake, a higher-rate taxpayer, receives earned income and dividend income. If he makes a personal pension contribution in 2021/22 that results in his dividend income being removed from the higher-rate tax bracket, the effective rate of tax relief will be:
Select one:
a. 40%.
b. 22.5%.
c. 45%.
d. 32.5%.
c. 45%. chapter reference 11D1
Grace has been resident in the UK for five years and is domiciled outside the UK. She owns substantial property and business interests in France, the income from both of which is paid into her UK bank account. How will this income and any gains from these assets be treated for tax purposes if she is taxed on the remittance basis?
Select one:
a. The income will not be subject to income tax, but any gains will be subject to capital gains tax.
b. The income will not be subject to income tax, and any gains will not be subject to capital gains tax.
c. The income will be subject to income tax, and any gains will be subject to capital gains tax.
d. The income will be subject to income tax, but any gains will not be subject to capital gains tax.
c. The income will be subject to income tax, and any gains will be subject to capital gains tax. chapter reference 5D3
Wesley, who is 14, was born in Spain shortly after the death of his father, who was Belgian. His mother was domiciled in France at that time but is now UK domiciled living in England. In which country is Wesley most likely to be domiciled?
Select one:
a. France.
b. United Kingdom.
c. Belgium.
d. Spain.
b. United Kingdom. chapter reference 5B1
A gain on the disposal of an asset is made on 1 June 2021. The capital gains tax liability for this disposal can be deferred if the gain is reinvested into an enterprise investment scheme, provided the reinvestment takes place between:
Select one:
a. 1 June 2020 and 31 May 2024.
b. 1 June 2020 and 31 May 2023.
c. 1 June 2021 and 31 May 2023.
d. 1 June 2021 and 31 May 2024.
a. 1 June 2020 and 31 May 2024. chapter reference 10K5
Penny buys a residential property in Oxford for £1,170,000 which includes £30,000 for fittings. Assuming this is Penny’s first and only property, how much stamp duty land tax is payable on the transaction?
Select one:
a. £57,750.
b. £42,000.
c. £60,750.
d. £117,500.
a. £57,750.
Blue Consulting Ltd’s CEO is Petra. She has assembled a team of eight company directors who own 100% of the shares. This is known as a[n]:
Select one:
a. close company.
b. enterprise investment scheme.
c. public company.
d. investment company.
a. close company.
ulie has earned income of £13,000 and interest from savings of £6,000. She has no other income or reliefs. How much income tax, if any, will she pay on her savings interest?
Select one:
a. £1,000.
b. £86.
c. £100.
d. £430.
b. £86. - chapter reference 9A1
When an asset is sold, the date of the disposal for capital gains tax purposes is the date that the:
Select one:
a. transaction physically occurred.
b. sale was agreed.
c. money physically changed hands.
d. contract for sale becomes binding.
d. contract for sale becomes binding.
Richard, who is a higher-rate taxpayer, sold one of his buy-to-let properties in July 2021, realising a gain of £24,000. He has carried forward losses of £10,000 and has not realised any other gains in the current tax year. How much capital gains tax would be payable in respect of his gain?
Select one:
a. £1,770.
b. £3,276.
c. £476.
d. £340.
c. £476.
Victor, a UK investor, has money in a bank account in the Channel Islands. He has not agreed for the bank to disclose details of the account to HMRC. The consequences of this are likely to be that:
Select one:
a. the interest will escape tax if the money remains offshore for 7 years.
b. he will be taxed at the higher rate regardless of his tax status.
c. withholding tax is deducted from interest payments.
d. any tax deducted cannot be offset against UK tax liability.
c. withholding tax is deducted from interest payments.
All of these are chargeable transfers for inheritance tax purposes, APART from a[n]:
Select one:
a. interest-free loan of £10,000 that is written off on death.
b. gift of £50,000 to an individual.
c. transfer of £15,000 to an absolute trust.
d. interest-free loan of £100,000 repayable on demand or death.
d. interest-free loan of £100,000 repayable on demand or death.
Sally is 32, and self-employed. In 2021/22 she has profits assessable to tax of £55,000 and she also makes a gross personal pension contribution of £3,000. What is Sally’s income tax liability?
Select one:
a. £9,432.
b. £8,232.
c. £8,832.
d. £9,472.
c. £8,832.
What expenses can be deducted from a company’s profits when calculating corporation tax?
Select one:
a. Depreciation on plant and machinery.
b. Entertaining expenses.
c. Charitable donations.
d. Depreciation on buildings.
c. Charitable donations.
Eric works in his wife’s business on a part-time basis and earns £150 per week. This means that he will:
Select one:
a. not qualify for State pension credits despite paying National Insurance contributions.
b. not qualify for State pension credits as he doesn’t pay the relevant National Insurance contributions.
c. qualify for State pension credits because he pays the relevant National Insurance contributions.
d. qualify for State pension credits even though no National Insurance contributions are due.
d. qualify for State pension credits even though no National Insurance contributions are due.
Malcolm, who is self-employed, had an income tax liability of £14,000 for 2020/21. His income tax liability for 2021/22 is £20,000 and he also has a capital gains tax liability of £4,000. Malcolm’s balancing payment on 31 January 2023 will be:
Select one:
a. £20,000.
b. £4,000.
c. £6,000.
d. £10,000.
d. £10,000.
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Amy, aged 15 and a non-taxpayer, is the beneficiary of a discretionary trust set up by her grandparents. If she receives an annual income of £1,000 from the trust, how much income tax can Amy reclaim on this income?
Select one:
a. £100.
b. £727.
c. £818.
d. £200.
c. £818.
All incomes received by beneficiaries in a discretionary trust is treated as through it has already been taxed at 45%. If you’re treated as though it has been taxed at 45%.
When would stamp duty land tax be payable following the transfer of ownership of a property?
Select one:
a. The transfer of ownership of a house from husband to wife as part of their divorce settlement.
b. The purchase of a flat for £130,000 where the carpets, curtains and domestic appliances have been valued at £6,000.
c. The purchase of a commercial property for £145,000.
d. The exchange of two properties, both valued at £550,000, between two owners without any cash changing hands.
d. The exchange of two properties, both valued at £550,000, between two owners without any cash changing hands.
Josef, 34, has been resident in the UK for 12 continuous tax years. If he chooses to claim the remittance basis he will be subject to an annual tax charge of:
Select one:
a. £50,000.
b. £30,000.
c. £60,000.
d. £90,000.
c. £60,000.
Boris has just paid his domestic gas bill which is £800 excluding VAT. How much VAT would he have paid on it?
Select one:
a. £160.
b. £80.
c. £120.
d. £40.
d. £40.
VAT on domestic energy is charged at a rate of 5%
Brian and Geoff are both self-employed. In this financial year, Brian has taxable supplies of £103,000 and profits of £70,000, whilst Geoff has taxable supplies of £90,000 with profits of £80,000. Which of them, if either, must register for VAT?
Select one:
a. Both Brian and Geoff.
b. Brian only.
c. Neither Brian nor Geoff.
d. Geoff only.
a. Both Brian and Geoff.
eorge died on 1 November 2021 and the beneficiaries of his will want to change it to reduce the inheritance tax liability that has arisen. To achieve this, they must enter into a deed of variation no later than 31 October:
Select one:
a. 2022.
b. 2023.
c. 2024.
d. 2025.
b. 2023.
A small company made a profit of £100,000 for their accounting period ending on 30 June 2021. What is the company’s corporation tax liability and when must this be paid?
Select one:
a. £20,000 corporation tax which is due no later than 1 April 2022.
b. £19,000 corporation tax which is due no later no later than 31 December 2022.
c. £19,000 corporation tax which is due no later than 1 April 2022.
d. £20,000 corporation tax which is due no later 31 December 2022.
c. £19,000 corporation tax which is due no later than 1 April 2022.
ian makes a gift aid donation to charity in 2021/22 and she has been advised to have this backdated to the previous tax year. What would the position be?
Select one:
a. She could have it treated as being paid in the previous tax year, and her previous year’s tax liability will be amended accordingly
b. She does not have the option to backdate the donation for tax purposes.
c. She could have it treated as being paid in the previous tax year, and she will receive relief in 2021/22 as a repayment.
d. She has the option to choose how the tax relief is allowed, either backdated or treated as a repayment.
c. She could have it treated as being paid in the previous tax year, and she will receive relief in 2021/22 as a repayment.
Any expenditure on equipment used in commercial property in excess of the annual investment allowance is eligible for a writing-down allowance in the year of purchase at a rate of:
Select one:
a. 18%.
b. 10%.
c. 20%.
d. 15%.
a. 18%.
Ulla has recently bought a new house and the effective date of the transaction was 7 November 2021. What is the latest date by which the stamp duty land tax must be paid?
Select one:
a. 14 November 2021.
b. 28 November 2021.
c. 21 November 2021.
d. 7 December 2021.
a. 14 November 2021.
David, a first-time buyer, purchases his new home for £350,000. The value of the property is £330,000 and the previous owner also leaves £20,000 worth of furniture and appliances. How much stamp duty land tax will David have to pay?
Select one:
a. £7,500.
b. £6,500.
c. £2,500.
d. £1,500.
d. £1,500.
Imka, who is a higher-rate taxpayer, dies at age 73 and nominates his uncrystallised defined contribution pension to go to his niece Sally. She is an additional-rate taxpayer and the pension fund is paid out to her within two years of Imka’s death. What rate of tax will Sally pay on withdrawals from the pension fund inherited from Imka?
Select one:
a. 40%.
b. 55%.
c. 0%.
d. 45%.
c. 0%.
When considering business asset disposal relief for capital gains tax purposes, the:
Select one:
a. reduced rate of capital gains tax applies to lifetime gains of £1 million or less.
b. asset must have been owned for at least one year before the disposal.
c. individual must be an employee of the company and hold at least 10% of the voting shares.
d. individual must be a director of the company and hold at least 20% of the voting shares.
a. reduced rate of capital gains tax applies to lifetime gains of £1 million or less.
n deciding whether an individual should be treated as employed or self-employed for tax purposes:
Select one:
a. the existence of a contract of service usually indicates that the individual is self-employed.
b. a self-employed individual cannot sub-contract someone else to carry out the work.
c. the existence of a contract to provide services usually indicates that the individual is self-employed.
d. a self-employed individual is never given set hours or engaged for a long period of time.
c. the existence of a contract to provide services usually indicates that the individual is self-employed.
Vasos has set-up an investment for the benefit of his grandchildren into which he makes substantial regular contributions. He funds it out of his routine outgoings and these don’t impact on his standard of living. In terms of inheritance tax, this would be regarded as a[n]:
Select one:
a. potentially exempt transfer.
b. chargeable transfer.
c. exempt expense.
d. exempt transfer.
d. exempt transfer.
Lena, who is an employed higher-rate taxpayer, wishes to file her return by paper for 2021/22. By which date must she do so?
Select one:
a. 31 October 2022.
b. 6 April 2022.
c. 30 December 2022.
d. 31 January 2023.
a. 31 October 2022.