ACCA AS Taxation (UK) 2

Question 1

Corporation tax is charged on a company's:

Accepted Answer

Taxable total profits (including trading profits, investment income and chargeable gains)

Answer

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.

Question 2

The main rate of UK corporation tax (from April 2023) for companies with profits over £250,000 is:

Accepted Answer

25%

Answer

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.

Question 3

Which of the following is an allowable deduction for corporation tax purposes?

Accepted Answer

Capital allowances on qualifying assets

Answer

Capital allowances replace accounting depreciation for tax purposes. Dividends are appropriations of profit, accounting depreciation is added back, and customer entertaining is generally disallowed.

Question 4

For VAT purposes, the standard rate in the UK is:

Accepted Answer

20%

Answer

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.

Question 5

A VAT-registered business must submit VAT returns and pay VAT:

Accepted Answer

Quarterly (usually)

Answer

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.

ACCA Applied Skills Practice Test

ACCA Applied Skills Practice Test

ACCA AS Taxation (UK) 2