ATT Personal Tax Paper 1 – Association of
Taxation Technicians Personal Taxation
Practice Exam 2026 | Practice Questions &
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with Correct Detailed Answers & Rationales
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Question 1
For the 2025/26 tax year, an individual has adjusted net income
of £92,000 and is entitled to the standard Personal Allowance.
What Personal Allowance is available?
A. £0
B. £4,570
C. £12,570
D. £8,570
Correct answer: C. £12,570
The standard Personal Allowance for 2025/26 is £12,570. The
allowance begins to be withdrawn when adjusted net income
exceeds £100,000, at a rate of £1 for every £2 of excess income.
,Because the individual's income is £92,000, no taper applies.
Therefore, the full £12,570 allowance is available.
Question 2
An individual has adjusted net income of £110,000 for 2025/26.
Ignoring any other reliefs, what is the individual's Personal
Allowance?
A. £12,570
B. £10,000
C. £7,570
D. £2,570
Correct answer: C. £7,570
The Personal Allowance is reduced by £1 for every £2 by which
adjusted net income exceeds £100,000. The excess is £10,000,
so the reduction is £5,000. The available Personal Allowance is
therefore £12,570 − £5,000 = £7,570. This taper can create a
particularly high effective marginal rate in the income range
where the allowance is being withdrawn.
Question 3
Which type of income is generally treated as non-savings
income for UK Income Tax purposes?
,A. Bank interest
B. Ordinary dividends
C. Salary from employment
D. Interest from a corporate bond
Correct answer: C. Salary from employment
Employment income is normally non-savings income. Bank
interest and other interest receipts are generally savings
income, while dividends are taxed under the dividend regime.
The classification matters because savings and dividend income
are taxed after non-savings income when determining which
tax bands are available.
Question 4
For 2025/26, an individual has taxable non-savings income of
£30,000 and taxable savings income of £10,000. Ignoring
allowances specifically applicable to savings income, at what
rate will the first £7,700 of the savings income generally be
taxed?
A. 0%
B. 10%
C. 20%
D. 40%
Correct answer: C. 20%
, The individual's £30,000 of non-savings income uses part of the
£37,700 basic-rate band. Only £7,700 of that band remains. The
savings income therefore first uses the remaining £7,700 at the
basic savings rate of 20%. Any savings income above the
remaining basic-rate band would normally move into the
higher-rate band, subject to the Personal Savings Allowance
and other applicable rules.
Question 5
What is the Personal Savings Allowance available to a basic-rate
taxpayer for 2025/26?
A. £500
B. £1,000
C. £2,000
D. £12,570
Correct answer: B. £1,000
For 2025/26, a basic-rate taxpayer generally has a Personal
Savings Allowance of £1,000. A higher-rate taxpayer has a £500
allowance, while an additional-rate taxpayer has no Personal
Savings Allowance. The allowance applies to relevant savings
income and is separate from the Personal Allowance.
Taxation Technicians 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 £92,000 and is entitled to the standard Personal Allowance.
What Personal Allowance is available?
A. £0
B. £4,570
C. £12,570
D. £8,570
Correct answer: C. £12,570
The standard Personal Allowance for 2025/26 is £12,570. The
allowance begins to be withdrawn when adjusted net income
exceeds £100,000, at a rate of £1 for every £2 of excess income.
,Because the individual's income is £92,000, no taper applies.
Therefore, the full £12,570 allowance is available.
Question 2
An individual has adjusted net income of £110,000 for 2025/26.
Ignoring any other reliefs, what is the individual's Personal
Allowance?
A. £12,570
B. £10,000
C. £7,570
D. £2,570
Correct answer: C. £7,570
The Personal Allowance is reduced by £1 for every £2 by which
adjusted net income exceeds £100,000. The excess is £10,000,
so the reduction is £5,000. The available Personal Allowance is
therefore £12,570 − £5,000 = £7,570. This taper can create a
particularly high effective marginal rate in the income range
where the allowance is being withdrawn.
Question 3
Which type of income is generally treated as non-savings
income for UK Income Tax purposes?
,A. Bank interest
B. Ordinary dividends
C. Salary from employment
D. Interest from a corporate bond
Correct answer: C. Salary from employment
Employment income is normally non-savings income. Bank
interest and other interest receipts are generally savings
income, while dividends are taxed under the dividend regime.
The classification matters because savings and dividend income
are taxed after non-savings income when determining which
tax bands are available.
Question 4
For 2025/26, an individual has taxable non-savings income of
£30,000 and taxable savings income of £10,000. Ignoring
allowances specifically applicable to savings income, at what
rate will the first £7,700 of the savings income generally be
taxed?
A. 0%
B. 10%
C. 20%
D. 40%
Correct answer: C. 20%
, The individual's £30,000 of non-savings income uses part of the
£37,700 basic-rate band. Only £7,700 of that band remains. The
savings income therefore first uses the remaining £7,700 at the
basic savings rate of 20%. Any savings income above the
remaining basic-rate band would normally move into the
higher-rate band, subject to the Personal Savings Allowance
and other applicable rules.
Question 5
What is the Personal Savings Allowance available to a basic-rate
taxpayer for 2025/26?
A. £500
B. £1,000
C. £2,000
D. £12,570
Correct answer: B. £1,000
For 2025/26, a basic-rate taxpayer generally has a Personal
Savings Allowance of £1,000. A higher-rate taxpayer has a £500
allowance, while an additional-rate taxpayer has no Personal
Savings Allowance. The allowance applies to relevant savings
income and is separate from the Personal Allowance.
