ATT Personal Tax Paper 1 – Association of
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 £110,000 and is otherwise entitled to the standard Personal
Allowance. What Personal Allowance is available?
A. £2,570
B. £5,070
C. £7,570
D. £12,570
Answer: C. £7,570
The standard Personal Allowance is £12,570. It 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, the available
,Personal Allowance is £12,570 − £5,000 = £7,570. The
allowance cannot be reduced below zero by this mechanism.
Question 2
An individual resident in England has employment income of
£48,000 and savings income of £2,000 during 2025/26. The
individual is entitled to the full Personal Allowance and has no
other income or reliefs. What is the Income Tax liability?
A. £6,800
B. £7,086
C. £7,286
D. £7,486
Answer: C. £7,286
The employment income after the £12,570 Personal Allowance
is £35,430. This falls within the basic-rate band and is taxed at
20%, producing £7,086. The individual is a basic-rate taxpayer,
so the savings allowance is £1,000. Of the £2,000 savings
income, £1,000 is covered by the savings allowance and the
remaining £1,000 is taxed at 20%, producing £200. Total
Income Tax is therefore £7,286.
Question 3
,An individual has taxable non-dividend income of £35,000 and
dividend income of £4,000 in 2025/26. No Personal Allowance
remains available. What is the Income Tax payable on the
dividends?
A. £350.00
B. £437.50
C. £506.25
D. £1,350.00
Answer: C. £506.25
The £500 dividend allowance means that only £3,500 of the
dividends is subject to the dividend rates. The taxable non-
dividend income uses £35,000 of the £37,700 basic-rate band,
leaving £2,700 of basic-rate band. Therefore, £2,700 of
dividends is taxed at the 8.75% ordinary dividend rate,
producing £236.25. The remaining £800 is taxed at the 33.75%
upper dividend rate, producing £270. The total dividend tax is
£506.25.
Question 4
An individual has taxable non-savings income of £3,000 and
savings income of £4,000 in 2025/26. The individual has no
dividend income and is entitled to the full Personal Allowance
, before arriving at these taxable amounts. How much tax is
payable on the savings income?
A. Nil
B. £200
C. £400
D. £800
Answer: C. £400
The starting rate for savings is 0% on the first £5,000 of savings
income, but the starting-rate band is reduced by taxable non-
savings income. The £3,000 of non-savings income therefore
leaves £2,000 of the starting-rate band available. The first
£2,000 of savings income is consequently taxed at 0%. The
remaining £2,000 is taxed at the basic savings rate of 20%,
giving tax of £400.
Question 5
A Scottish taxpayer has £40,000 of taxable non-savings income
in 2025/26. Ignoring savings and dividend income, what is the
approximate Scottish Income Tax liability?
A. £8,000
B. £9,520
C. £10,093.20
D. £10,800
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 £110,000 and is otherwise entitled to the standard Personal
Allowance. What Personal Allowance is available?
A. £2,570
B. £5,070
C. £7,570
D. £12,570
Answer: C. £7,570
The standard Personal Allowance is £12,570. It 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, the available
,Personal Allowance is £12,570 − £5,000 = £7,570. The
allowance cannot be reduced below zero by this mechanism.
Question 2
An individual resident in England has employment income of
£48,000 and savings income of £2,000 during 2025/26. The
individual is entitled to the full Personal Allowance and has no
other income or reliefs. What is the Income Tax liability?
A. £6,800
B. £7,086
C. £7,286
D. £7,486
Answer: C. £7,286
The employment income after the £12,570 Personal Allowance
is £35,430. This falls within the basic-rate band and is taxed at
20%, producing £7,086. The individual is a basic-rate taxpayer,
so the savings allowance is £1,000. Of the £2,000 savings
income, £1,000 is covered by the savings allowance and the
remaining £1,000 is taxed at 20%, producing £200. Total
Income Tax is therefore £7,286.
Question 3
,An individual has taxable non-dividend income of £35,000 and
dividend income of £4,000 in 2025/26. No Personal Allowance
remains available. What is the Income Tax payable on the
dividends?
A. £350.00
B. £437.50
C. £506.25
D. £1,350.00
Answer: C. £506.25
The £500 dividend allowance means that only £3,500 of the
dividends is subject to the dividend rates. The taxable non-
dividend income uses £35,000 of the £37,700 basic-rate band,
leaving £2,700 of basic-rate band. Therefore, £2,700 of
dividends is taxed at the 8.75% ordinary dividend rate,
producing £236.25. The remaining £800 is taxed at the 33.75%
upper dividend rate, producing £270. The total dividend tax is
£506.25.
Question 4
An individual has taxable non-savings income of £3,000 and
savings income of £4,000 in 2025/26. The individual has no
dividend income and is entitled to the full Personal Allowance
, before arriving at these taxable amounts. How much tax is
payable on the savings income?
A. Nil
B. £200
C. £400
D. £800
Answer: C. £400
The starting rate for savings is 0% on the first £5,000 of savings
income, but the starting-rate band is reduced by taxable non-
savings income. The £3,000 of non-savings income therefore
leaves £2,000 of the starting-rate band available. The first
£2,000 of savings income is consequently taxed at 0%. The
remaining £2,000 is taxed at the basic savings rate of 20%,
giving tax of £400.
Question 5
A Scottish taxpayer has £40,000 of taxable non-savings income
in 2025/26. Ignoring savings and dividend income, what is the
approximate Scottish Income Tax liability?
A. £8,000
B. £9,520
C. £10,093.20
D. £10,800
