ACCA AS Taxation (UK)

Question 1

For income tax purposes, a UK resident individual is taxed on:

Accepted Answer

Worldwide income

Answer

UK income only

Answer

Only employment income

Answer

Only investment income

Question 2

The personal allowance for income tax (standard amount) reduces by £1 for every £2 of adjusted net income above:

Accepted Answer

£100,000

Answer

£50,000

Answer

£125,140

Answer

£150,000

Question 3

Capital gains tax (CGT) for a higher-rate taxpayer on the disposal of a residential property (above the annual exempt amount) is charged at:

Accepted Answer

24%

Answer

10%

Answer

18%

Answer

28%

Question 4

Which of the following is deductible when calculating trading profits for income tax?

Accepted Answer

Bad debt specifically written off

Answer

Capital expenditure on equipment

Answer

Depreciation charged in the accounts

Answer

Business entertaining of customers

Question 5

Annual investment allowance (AIA) provides:

Accepted Answer

100% first-year relief on qualifying plant and machinery expenditure up to the AIA limit

Answer

A 25% reducing balance allowance on all plant and machinery

Answer

Relief spread equally over the asset's useful life

Answer

Relief only available to companies, not sole traders

Question 6

National Insurance Contributions (NICs) Class 1 employee contributions are paid on:

Accepted Answer

Employment income (earnings) above the primary threshold

Answer

All income including bank interest

Answer

Self-employment profits

Answer

All dividend income