ATT ADVANCED TAXATION PRACTICE
TEST 3 QUESTIONS AND ANSWERS
1. A UK resident individual sells a residential property in the 2023/24 tax year. What is the
deadline for reporting and paying the Capital Gains Tax due on this disposal?
A. 31 January following the end of the tax year
B. 60 days from the date of completion
C. 30 days from the date of exchange
D. 90 days from the date of completion
Answer: B
Conceptual Explanation: For disposals of UK residential property by UK residents, the
return must be filed and the tax paid within 60 days of completion.
2. Which of the following is NOT a requirement for a company to be considered a ‘close
company’ for UK tax purposes?
A. It is a non-UK resident company
B. It is under the control of any number of participators who are directors
C. It is under the control of five or fewer participators
,D. On winding up, more than half of the assets are distributable to five or fewer
participators
Answer: A
Conceptual Explanation: A close company must be UK resident. Non-resident companies
cannot be close companies under UK tax law.
3. Under the VAT fuel scale charge, what determines the amount of VAT that must be
accounted for on private use of fuel in a business car?
A. The CO2 emissions of the vehicle
B. The actual mileage driven for private purposes
C. The total cost of fuel purchased by the business
D. The list price of the car
Answer: A
Conceptual Explanation: The VAT fuel scale charge is a fixed accounting charge based on
the CO2 emissions of the car, used to simplify accounting for private fuel use.
4. What is the maximum amount of Business Asset Disposal Relief (BADR) lifetime limit for
qualifying gains occurring after 11 March 2020?
A. £10 million
B. £5 million
C. £1 million
, D. £2 million
Answer: C
Conceptual Explanation: The lifetime limit for BADR was reduced from £10 million to £1
million for disposals made on or after 11 March 2020.
5. A company is considered ‘large’ for Corporation Tax payment purposes if its augmented
profits exceed which threshold?
A. £20 million
B. £500,000
C. £1.5 million
D. £10 million
Answer: C
Conceptual Explanation: A company is large if augmented profits exceed £1.5 million
(adjusted for the number of associated companies).
6. Inheritance Tax: What is the taper relief percentage for a gift made between 4 and 5 years
before death?
A. 20%
B. 60%
C. 40%
D. 80%
TEST 3 QUESTIONS AND ANSWERS
1. A UK resident individual sells a residential property in the 2023/24 tax year. What is the
deadline for reporting and paying the Capital Gains Tax due on this disposal?
A. 31 January following the end of the tax year
B. 60 days from the date of completion
C. 30 days from the date of exchange
D. 90 days from the date of completion
Answer: B
Conceptual Explanation: For disposals of UK residential property by UK residents, the
return must be filed and the tax paid within 60 days of completion.
2. Which of the following is NOT a requirement for a company to be considered a ‘close
company’ for UK tax purposes?
A. It is a non-UK resident company
B. It is under the control of any number of participators who are directors
C. It is under the control of five or fewer participators
,D. On winding up, more than half of the assets are distributable to five or fewer
participators
Answer: A
Conceptual Explanation: A close company must be UK resident. Non-resident companies
cannot be close companies under UK tax law.
3. Under the VAT fuel scale charge, what determines the amount of VAT that must be
accounted for on private use of fuel in a business car?
A. The CO2 emissions of the vehicle
B. The actual mileage driven for private purposes
C. The total cost of fuel purchased by the business
D. The list price of the car
Answer: A
Conceptual Explanation: The VAT fuel scale charge is a fixed accounting charge based on
the CO2 emissions of the car, used to simplify accounting for private fuel use.
4. What is the maximum amount of Business Asset Disposal Relief (BADR) lifetime limit for
qualifying gains occurring after 11 March 2020?
A. £10 million
B. £5 million
C. £1 million
, D. £2 million
Answer: C
Conceptual Explanation: The lifetime limit for BADR was reduced from £10 million to £1
million for disposals made on or after 11 March 2020.
5. A company is considered ‘large’ for Corporation Tax payment purposes if its augmented
profits exceed which threshold?
A. £20 million
B. £500,000
C. £1.5 million
D. £10 million
Answer: C
Conceptual Explanation: A company is large if augmented profits exceed £1.5 million
(adjusted for the number of associated companies).
6. Inheritance Tax: What is the taper relief percentage for a gift made between 4 and 5 years
before death?
A. 20%
B. 60%
C. 40%
D. 80%
