ATT Personal Tax Paper 1 Final Certification Exam
NEWEST 2026-2027 ACTUAL EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ BRAND NEW!!
accrued income scheme definition - CORRECT ANSWER: shares have a higher value before the
interest is paid out and therefore sold at a higher price.
The seller gets taxed as savings income on the accrued interest to prevent tax avoidance (paying
CGT instead of savings)
accrued income scheme:
buyers tax treatment on cum div purchase - CORRECT ANSWER: deduct rebate as allowable
deduction from next interest payment in following years tax comp
accrued income scheme:
buyers tax treatment on ex div sale - CORRECT ANSWER: tax accrued is taxed as savings
income in next tax comp
accrued income scheme:
cum-div definition - CORRECT ANSWER: stocks and bonds purchased with interest
accrued income scheme:
,ex-div definition - CORRECT ANSWER: stocks and bonds purchased without interest
accrued income scheme:
Exempt amout - CORRECT ANSWER: Nominal values < £5,000 at any time in current and
previous TY
accrued income scheme:
nominal value - CORRECT ANSWER: value on which interest payments are calculated
(MV includes premium therefore higher)
accrued income scheme:
sellers tax treatment on cum div sale - CORRECT ANSWER: tax accrued is taxed as savings
income in next tax comp
accrued income scheme:
sellers tax treatment on ex div sale - CORRECT ANSWER: deduct rebate as allowable deduction
from next interest payment in following years tax comp
accrued income scheme:
treatment of interest payment when sold before ex div date - CORRECT ANSWER: cum div
purchaser receives next interest payment
,accrued income scheme:
treatment of interest payment when sold on/after ex div date - CORRECT ANSWER: ex div
seller receives next interest payment
additional penalty for tax returns more than 3 months late - CORRECT ANSWER: £10 per day
imposed for maximum 90 days
aka £900 max
additional penalty for tax returns more than 6 months late - CORRECT ANSWER: greater of:
5% of tax liability
£300
additional penalty for tax returns more than 12 months late - CORRECT ANSWER: greater of:
5% of tax liability
£300
Adjusted income for pensions annual allowance amount - CORRECT ANSWER: £240,000
Adjusted income for pensions annual allowance calculation - CORRECT ANSWER: Total
income
Add: occupational pension contributions paid by employer
= adjusted income
aka, income before pension contributions but with employer contributions
adjusted net income for child benefit charge - CORRECT ANSWER: net income
, less: grossed up pension contributions
less: grossed up gift aid donations
Adjusted total income = - CORRECT ANSWER: Total income
less gross pension contributions
less grossed up gift aid
AEA on carry forward capital losses - CORRECT ANSWER: preserved as offset before carry
forward losses offset
AEA on current year capital losses - CORRECT ANSWER: waisted as offset after current year
loss offset
AEA utilisation on capital gains - CORRECT ANSWER: 1 - residential property
2- other gains
3- BADR & investors relief
BADR:
Associated disposal - CORRECT ANSWER: disposal of business used asset with the disposal of
shares when:
the asset has been used by the business for more than 2 years
BADR:
company ceases to be a personal trading company - CORRECT ANSWER: when shares are
issued to raise finance and the 5% is diluted;
NEWEST 2026-2027 ACTUAL EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ BRAND NEW!!
accrued income scheme definition - CORRECT ANSWER: shares have a higher value before the
interest is paid out and therefore sold at a higher price.
The seller gets taxed as savings income on the accrued interest to prevent tax avoidance (paying
CGT instead of savings)
accrued income scheme:
buyers tax treatment on cum div purchase - CORRECT ANSWER: deduct rebate as allowable
deduction from next interest payment in following years tax comp
accrued income scheme:
buyers tax treatment on ex div sale - CORRECT ANSWER: tax accrued is taxed as savings
income in next tax comp
accrued income scheme:
cum-div definition - CORRECT ANSWER: stocks and bonds purchased with interest
accrued income scheme:
,ex-div definition - CORRECT ANSWER: stocks and bonds purchased without interest
accrued income scheme:
Exempt amout - CORRECT ANSWER: Nominal values < £5,000 at any time in current and
previous TY
accrued income scheme:
nominal value - CORRECT ANSWER: value on which interest payments are calculated
(MV includes premium therefore higher)
accrued income scheme:
sellers tax treatment on cum div sale - CORRECT ANSWER: tax accrued is taxed as savings
income in next tax comp
accrued income scheme:
sellers tax treatment on ex div sale - CORRECT ANSWER: deduct rebate as allowable deduction
from next interest payment in following years tax comp
accrued income scheme:
treatment of interest payment when sold before ex div date - CORRECT ANSWER: cum div
purchaser receives next interest payment
,accrued income scheme:
treatment of interest payment when sold on/after ex div date - CORRECT ANSWER: ex div
seller receives next interest payment
additional penalty for tax returns more than 3 months late - CORRECT ANSWER: £10 per day
imposed for maximum 90 days
aka £900 max
additional penalty for tax returns more than 6 months late - CORRECT ANSWER: greater of:
5% of tax liability
£300
additional penalty for tax returns more than 12 months late - CORRECT ANSWER: greater of:
5% of tax liability
£300
Adjusted income for pensions annual allowance amount - CORRECT ANSWER: £240,000
Adjusted income for pensions annual allowance calculation - CORRECT ANSWER: Total
income
Add: occupational pension contributions paid by employer
= adjusted income
aka, income before pension contributions but with employer contributions
adjusted net income for child benefit charge - CORRECT ANSWER: net income
, less: grossed up pension contributions
less: grossed up gift aid donations
Adjusted total income = - CORRECT ANSWER: Total income
less gross pension contributions
less grossed up gift aid
AEA on carry forward capital losses - CORRECT ANSWER: preserved as offset before carry
forward losses offset
AEA on current year capital losses - CORRECT ANSWER: waisted as offset after current year
loss offset
AEA utilisation on capital gains - CORRECT ANSWER: 1 - residential property
2- other gains
3- BADR & investors relief
BADR:
Associated disposal - CORRECT ANSWER: disposal of business used asset with the disposal of
shares when:
the asset has been used by the business for more than 2 years
BADR:
company ceases to be a personal trading company - CORRECT ANSWER: when shares are
issued to raise finance and the 5% is diluted;
