ATT Personal Tax Paper 1 Final Certification
Study Materials 2026 – Association of Taxation
Technicians (ATT) Paper 1: Personal Taxation
Practice Exam 2026 | Practice Questions &
Study Guide | Complete Exam-Style Questions
with Correct Detailed Answers & Rationales
(Reliable Answers) | Latest Updated Version |
Instant Download PDF
Question 1
For the 2025/26 tax year, an individual has adjusted net income
of £100,000. Which statement about the standard Personal
Allowance is correct?
A. The individual receives no Personal Allowance.
B. The individual receives a Personal Allowance of £6,285.
C. The individual receives the full Personal Allowance of
£12,570.
D. The individual receives a Personal Allowance of £10,000.
Correct answer: C. The individual receives the full Personal
Allowance of £12,570.
,The Personal Allowance for 2025/26 is £12,570. It is reduced by
£1 for every £2 of adjusted net income above £100,000. At
exactly £100,000, there has been no reduction, so the full
£12,570 allowance remains available. The reduction therefore
starts only once adjusted net income exceeds £100,000. This
distinction is important because a taxpayer with income just
above £100,000 may have only a partially available allowance,
whereas someone at exactly £100,000 does not.
Question 2
An employee earns £60,000 during 2025/26 and has no other
income or reliefs. Ignoring National Insurance, what is the
employee's Income Tax liability?
A. £9,486
B. £11,486
C. £12,000
D. £14,000
Correct answer: B. £11,486.
The employee receives the £12,570 Personal Allowance, leaving
taxable income of £47,430. The first £37,700 is taxed at 20%,
producing £7,540. The remaining £9,730 is taxed at 40%,
producing £3,892. Total Income Tax is therefore £11,432, not
£11,486. Wait—the arithmetic must be applied precisely:
,£7,540 + £3,892 = £11,432. Therefore none of the listed options
is correct. This question illustrates why calculations should
always be checked rather than relying on approximate mental
arithmetic.
Correction: the correct answer should be £11,432; none of A–
D is valid.
Question 3
Which type of income is generally treated as savings income for
Income Tax purposes?
A. Salary from employment
B. Bank interest
C. Trading profits
D. Rental income from residential property
Correct answer: B. Bank interest.
Savings income includes interest and similar returns from
money deposited or invested. Salary is non-savings income,
trading profits are generally non-savings income, and property
rental income is generally property income. The classification
matters because savings income is subject to special rules,
including the starting rate for savings and Personal Savings
Allowance. Correct classification is therefore essential before
applying the Income Tax rates.
, Question 4
For 2025/26, what is the dividend allowance available to an
individual?
A. £500
B. £1,000
C. £2,000
D. £12,570
Correct answer: A. £500.
The dividend allowance for 2025/26 is £500. It is a nil-rate band
rather than an amount that is deducted from total income.
Dividends within the allowance are taxed at 0%, but they still
count when determining the taxpayer's position within the
Income Tax bands. Dividends above the allowance are taxed
using the applicable dividend rates
Question 5
An individual receives £700 of dividend income during 2025/26
and has no other dividends. How much of the dividend is
potentially subject to the dividend tax rates?
A. £0
B. £200
Study Materials 2026 – Association of Taxation
Technicians (ATT) Paper 1: Personal Taxation
Practice Exam 2026 | Practice Questions &
Study Guide | Complete Exam-Style Questions
with Correct Detailed Answers & Rationales
(Reliable Answers) | Latest Updated Version |
Instant Download PDF
Question 1
For the 2025/26 tax year, an individual has adjusted net income
of £100,000. Which statement about the standard Personal
Allowance is correct?
A. The individual receives no Personal Allowance.
B. The individual receives a Personal Allowance of £6,285.
C. The individual receives the full Personal Allowance of
£12,570.
D. The individual receives a Personal Allowance of £10,000.
Correct answer: C. The individual receives the full Personal
Allowance of £12,570.
,The Personal Allowance for 2025/26 is £12,570. It is reduced by
£1 for every £2 of adjusted net income above £100,000. At
exactly £100,000, there has been no reduction, so the full
£12,570 allowance remains available. The reduction therefore
starts only once adjusted net income exceeds £100,000. This
distinction is important because a taxpayer with income just
above £100,000 may have only a partially available allowance,
whereas someone at exactly £100,000 does not.
Question 2
An employee earns £60,000 during 2025/26 and has no other
income or reliefs. Ignoring National Insurance, what is the
employee's Income Tax liability?
A. £9,486
B. £11,486
C. £12,000
D. £14,000
Correct answer: B. £11,486.
The employee receives the £12,570 Personal Allowance, leaving
taxable income of £47,430. The first £37,700 is taxed at 20%,
producing £7,540. The remaining £9,730 is taxed at 40%,
producing £3,892. Total Income Tax is therefore £11,432, not
£11,486. Wait—the arithmetic must be applied precisely:
,£7,540 + £3,892 = £11,432. Therefore none of the listed options
is correct. This question illustrates why calculations should
always be checked rather than relying on approximate mental
arithmetic.
Correction: the correct answer should be £11,432; none of A–
D is valid.
Question 3
Which type of income is generally treated as savings income for
Income Tax purposes?
A. Salary from employment
B. Bank interest
C. Trading profits
D. Rental income from residential property
Correct answer: B. Bank interest.
Savings income includes interest and similar returns from
money deposited or invested. Salary is non-savings income,
trading profits are generally non-savings income, and property
rental income is generally property income. The classification
matters because savings income is subject to special rules,
including the starting rate for savings and Personal Savings
Allowance. Correct classification is therefore essential before
applying the Income Tax rates.
, Question 4
For 2025/26, what is the dividend allowance available to an
individual?
A. £500
B. £1,000
C. £2,000
D. £12,570
Correct answer: A. £500.
The dividend allowance for 2025/26 is £500. It is a nil-rate band
rather than an amount that is deducted from total income.
Dividends within the allowance are taxed at 0%, but they still
count when determining the taxpayer's position within the
Income Tax bands. Dividends above the allowance are taxed
using the applicable dividend rates
Question 5
An individual receives £700 of dividend income during 2025/26
and has no other dividends. How much of the dividend is
potentially subject to the dividend tax rates?
A. £0
B. £200
