ACCA
Applied Skills
Taxation (TX –
UK) FA2025
Exam Practice Kit
For exams in June 2024,
September 2024, December
2024 and March 2025
,Contents
Finding questions
Question index iv
Topic index x
About this Exam Practice Kit xii
Revising Taxation (TX – UK) xii
Passing the Taxation (TX – UK) exam xiii
Exam information xv
Helping you with your revision xvii
Essential skills areas to be successful in Taxation (TX – UK) xviii
Exam success skills xxii
Questions and answers
Questions 3
Answers 155
Exam Practice
Mock exam 1 (September 2016 exam updated to FA 2023)
Questions 361
Answers 377
Mock exam 2 (Specimen exam updated to FA 2023)
Questions 397
Answers 413
Mock exam 3 (December 2016 exam updated to FA 2023)
Questions 439
Answers 457
Mock exam 4 (March/June 2023 amended)
Questions 477
Answers 493
Tax Tables 509
(2 marks)
, 1 Which TWO of the following have legal force?
Revenue and Customs Brief
A Statutory Instrument
An Act of Parliament
An Extra Statutory Concession
(2 marks)
2 Fare plc wishes to appeal against the assessment of £10,000,000 of corporation tax by HM
Revenue & Customs (HMRC).
By whom is Fare plc’s appeal most likely to be heard?
By the First Tier Tribunal
By the Upper Tribunal
By the Supreme Court
By the Court of Appeal (2 marks)
3 Daren amade aa achargeable again aof a£50,000 aon athe asale aof aa apainting aon a30
aJune a2023. aThis awas aDaren’s aonly adisposal ain athe atax ayear a2023/24. aHe ahad
apreviously apaid ahis aincome atax athrough adeduction aat asource aso ahas anot ahad ato
asubmit aa aself-assessment atax areturn.
By awhat adate amust aDaren anotify aHM aRevenue a& aCustoms a(HMRC) aof ahis
achargeability ato acapital agains atax ain arelation ato athe again amade aon a30 aJune
a2023 aand aby awhat adate amust ahe apay athe acapital agains atax aliability?
Notification Payment
a a 31 aJanuary a2025 31 aJanuary a2025
a a 5 aOctober a2024 31 aJanuary a2025
a a 5 aOctober a2024 31 aJuly a2025
a a 31 aJanuary a2025 31 aJuly a2025
(2
amarks)
4 Mammoth aLtd acommenced atrading aon a1 aJanuary a2024. aThe acompany’s aprofits ahave
abeen:
Period £
Year aended a31 aDecember a2024 524,000
Year aended a31 aDecember a2025 867,000
Year aended a31 aDecember a2026 912,000
Throughout aall aof athese aperiods, aMammoth aLtd ahad aone aassociated acompany.
What ais athe afirst ayear afor awhich aMammoth aLtd awill abe arequired ato apay aits
acorporation atax aliability aby aquarterly ainstalments?
a Year aended a31 aDecember a2025
a None aof athe ayears aended a31 aDecember a2024, a2025 aor a2026
a Year aended a31 aDecember a2026
a Year aended a31 aDecember a2024 (2 amarks)
Questions 3
, 5 Taxes acan abe acapital ataxes aor arevenue ataxes, aalthough asome ataxes aare aneither atype aof
atax.
QUESTIONS
Identify, aby aclicking aon athe arelevant aboxes ain athe atable abelow, athe acorrect
aclassification afor athe afollowing athree ataxes.
Value aadded atax NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
Inheritance atax NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
National ainsurance
NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
acontributions
(2 amarks)
6 In athe ayear aended a31 aMarch a2024, aLuck aLtd ahad ataxable atotal aprofits aof
a£400,000 aand areceived athe afollowing adividends:
£
From aunconnected acompanies 5,200
From aa acompany ain awhich aLuck aLtd ahas aan a80% ashareholding 4,300
From aa acompany ain awhich aLuck aLtd ahas aa a45% ashareholding 1,400
What ais athe avalue aof aLuck aLtd’s aprofits afor athe ayear aended a31 aMarch a2024 afor athe
apurposes aof adetermining awhether ait ashould apay acorporation atax ain ainstalments?
▼
Pull adown alist
• £405,200
• £405,700
• £406,600
• £410,900
(2 amarks)
7 Hassan afiled ahis aself-assessment atax areturn afor athe atax ayear a2021/22 aon a31 aAugust
a2023. aThe areturn ashowed aa atax aliability aof a£6,200, awhich aHassan apaid ain afull aon
a31 aAugust a2023.
Which aTHREE aof athe afollowing apenalties acould aHassan abe acharged ain arespect aof
athe alate afiling aof ahis aself-assessment atax areturn? (March/June
a2022)
£100 afixed apenalty
£900 aof adaily apenalties
£200 afixed apenalty
£310 atax ageared apenalty
£620 atax ageared apenalty
£2,120 aof adaily apenalties (2 amarks)
8 Ruby awas arequired ato amake apayments aon aaccount aof a£5,000 ain atotal
atowards aher atax aliability afor athe atax ayear a2023/24.
She apaid aboth apayments aon aaccount, aof a£2,500 aeach, aon a1 aJuly a2024.
After acompleting aher aself-assessment atax areturn afor athe atax ayear a2023/24, aRuby
acalculates athat aher atax aliability afor athat ayear ais a£7,000.
4 Taxation (TX – UK) FA2023
Applied Skills
Taxation (TX –
UK) FA2025
Exam Practice Kit
For exams in June 2024,
September 2024, December
2024 and March 2025
,Contents
Finding questions
Question index iv
Topic index x
About this Exam Practice Kit xii
Revising Taxation (TX – UK) xii
Passing the Taxation (TX – UK) exam xiii
Exam information xv
Helping you with your revision xvii
Essential skills areas to be successful in Taxation (TX – UK) xviii
Exam success skills xxii
Questions and answers
Questions 3
Answers 155
Exam Practice
Mock exam 1 (September 2016 exam updated to FA 2023)
Questions 361
Answers 377
Mock exam 2 (Specimen exam updated to FA 2023)
Questions 397
Answers 413
Mock exam 3 (December 2016 exam updated to FA 2023)
Questions 439
Answers 457
Mock exam 4 (March/June 2023 amended)
Questions 477
Answers 493
Tax Tables 509
(2 marks)
, 1 Which TWO of the following have legal force?
Revenue and Customs Brief
A Statutory Instrument
An Act of Parliament
An Extra Statutory Concession
(2 marks)
2 Fare plc wishes to appeal against the assessment of £10,000,000 of corporation tax by HM
Revenue & Customs (HMRC).
By whom is Fare plc’s appeal most likely to be heard?
By the First Tier Tribunal
By the Upper Tribunal
By the Supreme Court
By the Court of Appeal (2 marks)
3 Daren amade aa achargeable again aof a£50,000 aon athe asale aof aa apainting aon a30
aJune a2023. aThis awas aDaren’s aonly adisposal ain athe atax ayear a2023/24. aHe ahad
apreviously apaid ahis aincome atax athrough adeduction aat asource aso ahas anot ahad ato
asubmit aa aself-assessment atax areturn.
By awhat adate amust aDaren anotify aHM aRevenue a& aCustoms a(HMRC) aof ahis
achargeability ato acapital agains atax ain arelation ato athe again amade aon a30 aJune
a2023 aand aby awhat adate amust ahe apay athe acapital agains atax aliability?
Notification Payment
a a 31 aJanuary a2025 31 aJanuary a2025
a a 5 aOctober a2024 31 aJanuary a2025
a a 5 aOctober a2024 31 aJuly a2025
a a 31 aJanuary a2025 31 aJuly a2025
(2
amarks)
4 Mammoth aLtd acommenced atrading aon a1 aJanuary a2024. aThe acompany’s aprofits ahave
abeen:
Period £
Year aended a31 aDecember a2024 524,000
Year aended a31 aDecember a2025 867,000
Year aended a31 aDecember a2026 912,000
Throughout aall aof athese aperiods, aMammoth aLtd ahad aone aassociated acompany.
What ais athe afirst ayear afor awhich aMammoth aLtd awill abe arequired ato apay aits
acorporation atax aliability aby aquarterly ainstalments?
a Year aended a31 aDecember a2025
a None aof athe ayears aended a31 aDecember a2024, a2025 aor a2026
a Year aended a31 aDecember a2026
a Year aended a31 aDecember a2024 (2 amarks)
Questions 3
, 5 Taxes acan abe acapital ataxes aor arevenue ataxes, aalthough asome ataxes aare aneither atype aof
atax.
QUESTIONS
Identify, aby aclicking aon athe arelevant aboxes ain athe atable abelow, athe acorrect
aclassification afor athe afollowing athree ataxes.
Value aadded atax NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
Inheritance atax NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
National ainsurance
NEITHER a TYPE CAPITAL aTAX REVENUE aTAX
acontributions
(2 amarks)
6 In athe ayear aended a31 aMarch a2024, aLuck aLtd ahad ataxable atotal aprofits aof
a£400,000 aand areceived athe afollowing adividends:
£
From aunconnected acompanies 5,200
From aa acompany ain awhich aLuck aLtd ahas aan a80% ashareholding 4,300
From aa acompany ain awhich aLuck aLtd ahas aa a45% ashareholding 1,400
What ais athe avalue aof aLuck aLtd’s aprofits afor athe ayear aended a31 aMarch a2024 afor athe
apurposes aof adetermining awhether ait ashould apay acorporation atax ain ainstalments?
▼
Pull adown alist
• £405,200
• £405,700
• £406,600
• £410,900
(2 amarks)
7 Hassan afiled ahis aself-assessment atax areturn afor athe atax ayear a2021/22 aon a31 aAugust
a2023. aThe areturn ashowed aa atax aliability aof a£6,200, awhich aHassan apaid ain afull aon
a31 aAugust a2023.
Which aTHREE aof athe afollowing apenalties acould aHassan abe acharged ain arespect aof
athe alate afiling aof ahis aself-assessment atax areturn? (March/June
a2022)
£100 afixed apenalty
£900 aof adaily apenalties
£200 afixed apenalty
£310 atax ageared apenalty
£620 atax ageared apenalty
£2,120 aof adaily apenalties (2 amarks)
8 Ruby awas arequired ato amake apayments aon aaccount aof a£5,000 ain atotal
atowards aher atax aliability afor athe atax ayear a2023/24.
She apaid aboth apayments aon aaccount, aof a£2,500 aeach, aon a1 aJuly a2024.
After acompleting aher aself-assessment atax areturn afor athe atax ayear a2023/24, aRuby
acalculates athat aher atax aliability afor athat ayear ais a£7,000.
4 Taxation (TX – UK) FA2023
