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ATT PERSONAL TAX PAPER 1 FINAL CERTIFICATION EXAM QUESTIONS
AND CORRECT ANSWERS LATEST EDITION 2026
ATT Personal Tax Paper 1 Final Certification Exam — Questions
Original Practice Questions — ATT Personal Tax Paper 1 (250 MCQs)
Section 1: Income Tax Computation and Rates (Questions 1–50)
1. What is the personal allowance for the 2025/26 tax year?
A) £12,570
B) £12,500
C) £12,750
D) £13,000
Answer: A — £12,570
Rationale: The personal allowance remains frozen at £12,570 for 2025/26 .
2. At what net income level does the personal allowance begin to be reduced?
A) £50,000
B) £75,000
C) £100,000
D) £125,140
Answer: C — £100,000
Rationale: The personal allowance is reduced by £1 for every £2 of net income above £100,000 .
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3. What is the basic rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 40%
Answer: B — 20%
Rationale: The basic rate of income tax is 20% for non-savings, non-dividend income .
4. What is the higher rate of income tax for 2025/26?
A) 20%
B) 40%
C) 45%
D) 42%
Answer: B — 40%
Rationale: The higher rate of income tax is 40% .
5. What is the additional rate of income tax for 2025/26?
A) 40%
B) 45%
C) 48%
D) 50%
Answer: B — 45%
Rationale: The additional rate of income tax is 45% for income above £125,140 .
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6. The basic rate band for 2025/26 is:
A) £31,400
B) £37,700
C) £50,270
D) £37,000
Answer: B — £37,700
Rationale: The basic rate band is £37,700 for 2025/26 .
7. What is the Scottish intermediate rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 42%
Answer: C — 21%
Rationale: The Scottish intermediate rate is 21% for non-savings income .
8. What is the Scottish starter rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 42%
Answer: A — 19%
Rationale: The Scottish starter rate is 19% .
9. Which of the following is NOT a category of income in the income tax computation?
A) Non-savings income
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B) Savings income
C) Dividend income
D) Capital gains
Answer: D — Capital gains
Rationale: Capital gains are subject to CGT, not income tax. The three income categories are
non-savings, savings, and dividend income .
10. The personal savings allowance for a basic rate taxpayer is:
A) £500
B) £1,000
C) £2,000
D) £5,000
Answer: B — £1,000
Rationale: Basic rate taxpayers have a £1,000 personal savings allowance .
11. The personal savings allowance for a higher rate taxpayer is:
A) £0
B) £500
C) £1,000
D) £2,000
Answer: B — £500
Rationale: Higher rate taxpayers have a £500 personal savings allowance .
12. The dividend allowance for 2025/26 is:
A) £500
B) £1,000
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ATT PERSONAL TAX PAPER 1 FINAL CERTIFICATION EXAM QUESTIONS
AND CORRECT ANSWERS LATEST EDITION 2026
ATT Personal Tax Paper 1 Final Certification Exam — Questions
Original Practice Questions — ATT Personal Tax Paper 1 (250 MCQs)
Section 1: Income Tax Computation and Rates (Questions 1–50)
1. What is the personal allowance for the 2025/26 tax year?
A) £12,570
B) £12,500
C) £12,750
D) £13,000
Answer: A — £12,570
Rationale: The personal allowance remains frozen at £12,570 for 2025/26 .
2. At what net income level does the personal allowance begin to be reduced?
A) £50,000
B) £75,000
C) £100,000
D) £125,140
Answer: C — £100,000
Rationale: The personal allowance is reduced by £1 for every £2 of net income above £100,000 .
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3. What is the basic rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 40%
Answer: B — 20%
Rationale: The basic rate of income tax is 20% for non-savings, non-dividend income .
4. What is the higher rate of income tax for 2025/26?
A) 20%
B) 40%
C) 45%
D) 42%
Answer: B — 40%
Rationale: The higher rate of income tax is 40% .
5. What is the additional rate of income tax for 2025/26?
A) 40%
B) 45%
C) 48%
D) 50%
Answer: B — 45%
Rationale: The additional rate of income tax is 45% for income above £125,140 .
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6. The basic rate band for 2025/26 is:
A) £31,400
B) £37,700
C) £50,270
D) £37,000
Answer: B — £37,700
Rationale: The basic rate band is £37,700 for 2025/26 .
7. What is the Scottish intermediate rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 42%
Answer: C — 21%
Rationale: The Scottish intermediate rate is 21% for non-savings income .
8. What is the Scottish starter rate of income tax for 2025/26?
A) 19%
B) 20%
C) 21%
D) 42%
Answer: A — 19%
Rationale: The Scottish starter rate is 19% .
9. Which of the following is NOT a category of income in the income tax computation?
A) Non-savings income
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B) Savings income
C) Dividend income
D) Capital gains
Answer: D — Capital gains
Rationale: Capital gains are subject to CGT, not income tax. The three income categories are
non-savings, savings, and dividend income .
10. The personal savings allowance for a basic rate taxpayer is:
A) £500
B) £1,000
C) £2,000
D) £5,000
Answer: B — £1,000
Rationale: Basic rate taxpayers have a £1,000 personal savings allowance .
11. The personal savings allowance for a higher rate taxpayer is:
A) £0
B) £500
C) £1,000
D) £2,000
Answer: B — £500
Rationale: Higher rate taxpayers have a £500 personal savings allowance .
12. The dividend allowance for 2025/26 is:
A) £500
B) £1,000
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