UK Taxation Exam 2026/27 — 110 Exam
Questions with Answers, Full Workings &
Explanations (Income Tax, NICs, CGT, IHT,
VAT, Corporation Tax, MTD, IR35 & Case
Studies)
Description:
UK Taxation Exam 2026/27 with 110 exam-standard questions and full answers covering
Income Tax, NICs, CGT, IHT, Corporation Tax, VAT, SDLT, MTD, IR35, CIS, Transfer
Pricing and GAAR. Includes multiple choice, true/false, computations and four integrated
case studies with step-by-step workings and examiner explanations. Fully updated to 2026/27
HMRC rates, thresholds and allowances — perfect for ACCA, ACA, CTA, AAT and
university tax students. Verified against official 2026/27 figures.
Download your complete UK tax exam pack now and revise smarter, not harder.
, UK Tax Exam 2026/27: 110 Questions + Answers
Instructions to Candidates:
Answer ALL questions in Sections A, B, C, D, and E
All rates and allowances are those applicable to the 2026/27 tax year unless otherwise stated
Show all workings for computation questions
Assume all individuals are domiciled and resident in the UK (England, Wales, or Northern
Ireland) unless stated otherwise
Round all monetary answers to the nearest pound
SECTION A — MULTIPLE CHOICE QUESTIONS (40 marks)
Each question carries 1 mark. Choose the single best answer.
Q1. For the 2026/27 tax year, the personal allowance for an individual with adjusted net income
of £112,000 is:
A. £12,570
B. £6,570
C. £5,570
D. £0
Answer: B. The personal allowance is reduced by £1 for every £2 of adjusted net income above
£100,000. £112,000 − £100,000 = £12,000 excess; £12,000 ÷ 2 = £6,000 reduction. £12,570 −
£6,000 = £6,570. The PA is fully withdrawn when adjusted net income reaches £125,140.
Q2. An employee earning £65,000 per year (paid monthly, tax code 1257L) has a Class 1
primary NIC liability for 2026/27 of:
A. £2,546
B. £3,310
C. £3,602
D. £4,109
,Answer: B. Primary threshold: £242/week (£12,570/year). Upper Earnings Limit: £967/week
(£50,270/year). NIC = 8% × (£50,270 − £12,570) + 2% × (£65,000 − £50,270) = 8% × £37,700
+ 2% × £14,730 = £3,016 + £295 = £3,311. Using exact weekly thresholds and PAYE rounding,
the precise figure is £3,309–£3,311. For this examination, candidates should use the annual
thresholds stated.
Q3. Which of the following statements about the Statutory Residence Test (SRT) is correct for
2026/27?
A. An individual who spends 183 days or more in the UK in a tax year is automatically UK
resident under the SRT
B. The SRT only applies to individuals who are not already UK resident under common law
C. The SRT contains three parts: automatic UK tests, automatic overseas tests, and sufficient ties
test
D. An individual can be dual resident under the SRT but cannot claim treaty relief
Answer: C. The SRT comprises automatic UK tests, automatic overseas tests, and the sufficient
ties test. Option A is not strictly correct as the 183-day rule applies only in certain circumstances.
Option D is incorrect as treaty relief (tie-breaker rules) is available.
Q4. For 2026/27, the dividend ordinary rate for basic rate taxpayers is:
A. 8.75%
B. 10.75%
C. 33.75%
D. 35.75%
Answer: B. The dividend ordinary rate increased from 8.75% to 10.75% for 2026/27. The
dividend upper rate rose to 35.75%. The additional rate remains at 39.35%.
Q5. An individual sells a residential property in 2026/27, making a gain of £40,000. They have
taxable income of £35,000. Their CGT liability is:
A. £7,200
B. £7,964
, C. £10,800
D. £12,000
Answer: B. Annual exempt amount: £3,000. Taxable gain: £37,000. The basic rate band is
£37,700. Income uses £35,000 − £12,570 = £22,430 of the band. Remaining basic rate band:
£37,700 − £22,430 = £15,270. CGT at 18% on £15,270 = £2,749. Remaining gain: £37,000 −
£15,270 = £21,730 at 24% = £5,215. Total = £7,964. CGT rates for 2026/27 are 18% and 24%.
Q6. The residence nil-rate band (RNRB) for 2026/27 is:
A. £100,000
B. £125,000
C. £175,000
D. £325,000
Answer: C. The RNRB remains at £175,000 per person for 2026/27. The standard nil-rate band
is £325,000.
Q7. For Corporation Tax in 2026/27, a company with taxable profits of £200,000 pays tax at:
A. 19% on all profits
B. 25% on all profits
C. Marginal relief between 19% and 25%
D. 20% on all profits
Answer: C. The small profits rate (19%) applies up to £50,000, and the main rate (25%) applies
above £250,000. Profits between £50,001 and £250,000 benefit from marginal relief, with a
marginal rate of 26.5%. The marginal relief standard fraction is 3/200.
Q8. Which of the following is a taxable benefit in kind for an employee?
A. Employer contributions to a registered pension scheme
B. A company car available for private use
C. Workplace parking at the employer's premises
D. Employer-provided childcare vouchers (within limits)
Questions with Answers, Full Workings &
Explanations (Income Tax, NICs, CGT, IHT,
VAT, Corporation Tax, MTD, IR35 & Case
Studies)
Description:
UK Taxation Exam 2026/27 with 110 exam-standard questions and full answers covering
Income Tax, NICs, CGT, IHT, Corporation Tax, VAT, SDLT, MTD, IR35, CIS, Transfer
Pricing and GAAR. Includes multiple choice, true/false, computations and four integrated
case studies with step-by-step workings and examiner explanations. Fully updated to 2026/27
HMRC rates, thresholds and allowances — perfect for ACCA, ACA, CTA, AAT and
university tax students. Verified against official 2026/27 figures.
Download your complete UK tax exam pack now and revise smarter, not harder.
, UK Tax Exam 2026/27: 110 Questions + Answers
Instructions to Candidates:
Answer ALL questions in Sections A, B, C, D, and E
All rates and allowances are those applicable to the 2026/27 tax year unless otherwise stated
Show all workings for computation questions
Assume all individuals are domiciled and resident in the UK (England, Wales, or Northern
Ireland) unless stated otherwise
Round all monetary answers to the nearest pound
SECTION A — MULTIPLE CHOICE QUESTIONS (40 marks)
Each question carries 1 mark. Choose the single best answer.
Q1. For the 2026/27 tax year, the personal allowance for an individual with adjusted net income
of £112,000 is:
A. £12,570
B. £6,570
C. £5,570
D. £0
Answer: B. The personal allowance is reduced by £1 for every £2 of adjusted net income above
£100,000. £112,000 − £100,000 = £12,000 excess; £12,000 ÷ 2 = £6,000 reduction. £12,570 −
£6,000 = £6,570. The PA is fully withdrawn when adjusted net income reaches £125,140.
Q2. An employee earning £65,000 per year (paid monthly, tax code 1257L) has a Class 1
primary NIC liability for 2026/27 of:
A. £2,546
B. £3,310
C. £3,602
D. £4,109
,Answer: B. Primary threshold: £242/week (£12,570/year). Upper Earnings Limit: £967/week
(£50,270/year). NIC = 8% × (£50,270 − £12,570) + 2% × (£65,000 − £50,270) = 8% × £37,700
+ 2% × £14,730 = £3,016 + £295 = £3,311. Using exact weekly thresholds and PAYE rounding,
the precise figure is £3,309–£3,311. For this examination, candidates should use the annual
thresholds stated.
Q3. Which of the following statements about the Statutory Residence Test (SRT) is correct for
2026/27?
A. An individual who spends 183 days or more in the UK in a tax year is automatically UK
resident under the SRT
B. The SRT only applies to individuals who are not already UK resident under common law
C. The SRT contains three parts: automatic UK tests, automatic overseas tests, and sufficient ties
test
D. An individual can be dual resident under the SRT but cannot claim treaty relief
Answer: C. The SRT comprises automatic UK tests, automatic overseas tests, and the sufficient
ties test. Option A is not strictly correct as the 183-day rule applies only in certain circumstances.
Option D is incorrect as treaty relief (tie-breaker rules) is available.
Q4. For 2026/27, the dividend ordinary rate for basic rate taxpayers is:
A. 8.75%
B. 10.75%
C. 33.75%
D. 35.75%
Answer: B. The dividend ordinary rate increased from 8.75% to 10.75% for 2026/27. The
dividend upper rate rose to 35.75%. The additional rate remains at 39.35%.
Q5. An individual sells a residential property in 2026/27, making a gain of £40,000. They have
taxable income of £35,000. Their CGT liability is:
A. £7,200
B. £7,964
, C. £10,800
D. £12,000
Answer: B. Annual exempt amount: £3,000. Taxable gain: £37,000. The basic rate band is
£37,700. Income uses £35,000 − £12,570 = £22,430 of the band. Remaining basic rate band:
£37,700 − £22,430 = £15,270. CGT at 18% on £15,270 = £2,749. Remaining gain: £37,000 −
£15,270 = £21,730 at 24% = £5,215. Total = £7,964. CGT rates for 2026/27 are 18% and 24%.
Q6. The residence nil-rate band (RNRB) for 2026/27 is:
A. £100,000
B. £125,000
C. £175,000
D. £325,000
Answer: C. The RNRB remains at £175,000 per person for 2026/27. The standard nil-rate band
is £325,000.
Q7. For Corporation Tax in 2026/27, a company with taxable profits of £200,000 pays tax at:
A. 19% on all profits
B. 25% on all profits
C. Marginal relief between 19% and 25%
D. 20% on all profits
Answer: C. The small profits rate (19%) applies up to £50,000, and the main rate (25%) applies
above £250,000. Profits between £50,001 and £250,000 benefit from marginal relief, with a
marginal rate of 26.5%. The marginal relief standard fraction is 3/200.
Q8. Which of the following is a taxable benefit in kind for an employee?
A. Employer contributions to a registered pension scheme
B. A company car available for private use
C. Workplace parking at the employer's premises
D. Employer-provided childcare vouchers (within limits)
