ATT Personal Tax Paper 1 – Association of
Taxation Technicians Personal Taxation
Practice Exam 2026/2027 | 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 2026/27 tax year, what is the standard Personal
Allowance available to an individual whose adjusted net income
is £80,000?
A. £10,000
B. £11,570
C. £12,570
D. £13,570
Answer: C. £12,570
*Rationale: The standard Personal Allowance for 2026/27 is
£12,570. The allowance begins to be reduced only when
adjusted net income exceeds £100,000. Therefore, an
,individual with adjusted net income of £80,000 retains the full
£12,570 allowance. The Personal Allowance is reduced by £1
for every £2 of adjusted net income above £100,000 and is fully
withdrawn at £125,140. *
Question 2
An employee has employment income of £80,000 and taxable
benefits in kind of £5,000 during 2026/27. Ignoring pension
contributions and other reliefs, what is the individual's adjusted
net income?
A. £75,000
B. £80,000
C. £85,000
D. £92,570
Answer: C. £85,000
*Rationale: Taxable employment benefits form part of taxable
income. The £80,000 employment income is therefore
increased by the £5,000 taxable benefits to give adjusted net
income of £85,000. No Personal Allowance deduction is made
when determining adjusted net income; the allowance is
considered later in the Income Tax computation. *
,Question 3
An individual has adjusted net income of £110,000 for 2026/27.
What is their Personal Allowance?
A. £12,570
B. £10,000
C. £7,570
D. £2,570
Answer: C. £7,570
*Rationale: The Personal Allowance is reduced by £1 for every
£2 of adjusted net income above £100,000. The excess is
£10,000, so the reduction is £5,000. Therefore, £12,570 −
£5,000 = £7,570. *
Question 4
An individual has adjusted net income of £125,140 for 2026/27.
What is the individual's standard Personal Allowance?
A. £12,570
B. £6,285
C. £1
D. Nil
Answer: D. Nil
, *Rationale: The Personal Allowance is reduced by £1 for every
£2 of adjusted net income above £100,000. At £125,140, the
excess is £25,140, producing a £12,570 reduction. This
eliminates the entire standard Personal Allowance. *
Question 5
Which of the following is generally classified as savings income
for Income Tax purposes?
A. Salary from employment
B. Bank interest
C. Rental income from a UK property
D. Pension income
Answer: B. Bank interest
*Rationale: Interest arising from bank and building society
deposits is savings income. Employment income, rental income
and pension income are generally non-savings income for the
purposes of the Income Tax computation. Savings income is
subject to its own ordering and rate rules, including the
Personal Savings Allowance and starting rate for savings where
applicable. *
Question 6
Taxation Technicians Personal Taxation
Practice Exam 2026/2027 | 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 2026/27 tax year, what is the standard Personal
Allowance available to an individual whose adjusted net income
is £80,000?
A. £10,000
B. £11,570
C. £12,570
D. £13,570
Answer: C. £12,570
*Rationale: The standard Personal Allowance for 2026/27 is
£12,570. The allowance begins to be reduced only when
adjusted net income exceeds £100,000. Therefore, an
,individual with adjusted net income of £80,000 retains the full
£12,570 allowance. The Personal Allowance is reduced by £1
for every £2 of adjusted net income above £100,000 and is fully
withdrawn at £125,140. *
Question 2
An employee has employment income of £80,000 and taxable
benefits in kind of £5,000 during 2026/27. Ignoring pension
contributions and other reliefs, what is the individual's adjusted
net income?
A. £75,000
B. £80,000
C. £85,000
D. £92,570
Answer: C. £85,000
*Rationale: Taxable employment benefits form part of taxable
income. The £80,000 employment income is therefore
increased by the £5,000 taxable benefits to give adjusted net
income of £85,000. No Personal Allowance deduction is made
when determining adjusted net income; the allowance is
considered later in the Income Tax computation. *
,Question 3
An individual has adjusted net income of £110,000 for 2026/27.
What is their Personal Allowance?
A. £12,570
B. £10,000
C. £7,570
D. £2,570
Answer: C. £7,570
*Rationale: The Personal Allowance is reduced by £1 for every
£2 of adjusted net income above £100,000. The excess is
£10,000, so the reduction is £5,000. Therefore, £12,570 −
£5,000 = £7,570. *
Question 4
An individual has adjusted net income of £125,140 for 2026/27.
What is the individual's standard Personal Allowance?
A. £12,570
B. £6,285
C. £1
D. Nil
Answer: D. Nil
, *Rationale: The Personal Allowance is reduced by £1 for every
£2 of adjusted net income above £100,000. At £125,140, the
excess is £25,140, producing a £12,570 reduction. This
eliminates the entire standard Personal Allowance. *
Question 5
Which of the following is generally classified as savings income
for Income Tax purposes?
A. Salary from employment
B. Bank interest
C. Rental income from a UK property
D. Pension income
Answer: B. Bank interest
*Rationale: Interest arising from bank and building society
deposits is savings income. Employment income, rental income
and pension income are generally non-savings income for the
purposes of the Income Tax computation. Savings income is
subject to its own ordering and rate rules, including the
Personal Savings Allowance and starting rate for savings where
applicable. *
Question 6
