Taxation (UK) Flashcards
6 cards from real ACCA AS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Taxation (UK) flashcards as text
Corporation tax is charged on a company's:
Answer: Taxable total profits (including trading profits, investment income and chargeable gains)
Corporation tax is charged on a company's taxable total profits, comprising trading profits, non-trading income (e.g., interest) and chargeable gains, less qualifying deductions.
The main rate of UK corporation tax (from April 2023) for companies with profits over £250,000 is:
Answer: 25%
From 1 April 2023, the main corporation tax rate is 25% for companies with profits over £250,000. The small profits rate is 19% for profits up to £50,000, with marginal relief between.
Which of the following is an allowable deduction for corporation tax purposes?
Answer: Capital allowances on qualifying assets
Capital allowances replace accounting depreciation for tax purposes. Dividends are appropriations of profit, accounting depreciation is added back, and customer entertaining is generally disallowed.
For VAT purposes, the standard rate in the UK is:
Answer: 20%
The standard rate of UK VAT is 20%. A reduced rate of 5% applies to certain supplies (e.g., domestic fuel, children's car seats) and zero-rating to others.
A VAT-registered business must submit VAT returns and pay VAT:
Answer: Quarterly (usually)
Most VAT-registered businesses submit quarterly VAT returns and pay any VAT due within one month and seven days of the quarter end, under Making Tax Digital.
Which of the following correctly describes 'input VAT'?
Answer: VAT suffered by the business on its purchases
Input VAT is the VAT a business pays on its purchases and expenses. It is reclaimable from HMRC (for VAT-registered businesses), reducing the net VAT payable.