16 Parminder began trading on 1 January 2023 making up her first set of accounts to 29 February 2024.

Her tax-adjusted
profits after capital allowances are as fol lows.

Period ended 29 February 2024 £53,208

Year ending 28 February 2025 (estimate) £31,740

Requirement
What is Parminder's taxable trading income for 2023/24?
A £53,208
B £45,607
C £44,451
D £31,740
LO3g

17 Raeleen began trading on 1 January 2024, preparing her first accounts to 30 June 2024 and she will prepare them to
every following June. The adjusted trading profits are as follows.

£
6 months ended 30 June 2024 10,000
Year ended 30 June 2025 (estimated) 25,000

Requirement
Which two of the following statements are correct?
A Taxable trading profits for 2024/25 are £25,000.
B Taxable tradi ng profits for 2023/24 are £5,000.
C Taxable tradi ng profits for 2023/24 are £22,500.
D Taxable trading profits for 2024/25 are £23,750.
LO3g

18 Amber and Betty have been trading in partnership for many years, sharing profits in the ratio 2:1. O n 1 October 2023 they
changed the arrangement so that a salary of £20,000 pa is allocated to Amber and the remaining profits are shared
equally. The partnership made adjusted trading profits of £240,000 in its year ended 31 March 2024.
Requirement
What are the partners' assessable trading profits for 2023/24?
A Amber £150,000; Betty £90,000
B Amber £140,000; Betty £100,000
C Amber £135,000; Betty £95,000
D Amber £145,000; Betty £95,000
LO3f
8 N a t i o n a l insurance contributions

Remember that when calculating national insurance contributions (NICs) you should round mathematically at each step of
the computation.

1 Sho has his own business and has tax-adjusted trading profits for the year of £1 3,100. He also has a part-time j o b earning
£8,000 each year.

Requirement
Which two of the following types of national insurance contributions must Sho pay for 2023/24?
A Class 1 primary
B Class 1 secondary
C Class 2
D Class 4
LO 1d

2 Roberta, aged 59, is a director of Wagner Ltd, a company in which she owns 50% of the shares. She takes £50,000 a year
o u t of the company, £20,000 as a salary and the balance as dividends.
The company employs George, aged 63, as Roberta's personal assistant. His annual salary is £1 5,000.
The company makes a profit of £80,000 before tax and before accounting for the amounts paid to Roberta.
Identify which of the following statements concerning NICs is/are correct.
Requirements
Wagner Ltd will pay Class 4 NICs o n the profits of £80,000.
A Correct
B Incorrect
George will pay Class 1 primary NICs on his earnings of £1 5,000.
C Correct
D Incorrect
Wagner Ltd will pay Class 1 secondary NICs on total employee remuneration of £65,000, before deducting the
employment allowance.
E Correct
F Incorrect
LO 1d, 3i

3 Steven has the following details for 2023/24.

Salary from employment 1 5,000

Tax-adjusted trading profits after capital allowances 13,500

Requirement
What are Steven's Class 4 national insurance contributions for 2023/24?

LO 3i
4 Abe has been trading for many years. His adjusted trading profits for 2023/24 are £20,000.

Requirement
What is Abe's total national insurance contributions liability for 2023/24?
A £669
B £848
C £892
D £1,071
LO3i

5 During 2023/24 Ball Ltd pays Lena, one of its 25 employees, a salary of £39,067. The company provides her with a carthat
has a cash-equivalent benefit of £5,000 and supermarket vouchers which cost the company £500 pa.
Requirement
What are the Class 1 secondary contributions payable by Ball Ltd in 2023/24 in respect of Lena?
Ignore the employment allowance.

LO3i

6 During 2023/24 Ball Ltd pays Lena, one of its 25 employees, a salary of £39,067. The company provides her with a carthat
has a cash-equivalent benefit of £5,000 and supermarket vouchers which cost the company £500 pa.

Requirement
What are the Class 1 A contributions payable by Ball Ltd in 2023/24 in respect of Lena?

LO3i

7 Boris, aged 68, has a part-time job working for Jinx Ltd, earning £9,700 each year.
Identify whether the following statements are correct.
Requirements
Boris will have Class 1 primary contributions deducted from his wages.
A Correct
B Incorrect
Jinx Ltd must pay Class 1 secondary contributions in relation to Boris's earnings.
C Correct
D Incorrect
LO I d

8 Cobalt Ltd made a trading profit of £50,000 i n its year ended 31 March 2024.
The company employs only one employee, Bain, who is also a director o n an annual salary of £36,000.
Requirement
What is the total national insurance liability of the company for 2023/24?

LO3i
 9 During 2023/24 Bat Ltd pays Laura a salary of £45,000 and provides her with benefits totalling £3,000.
Requirement
What are the national insurance contributions payable by Bat Ltd in 2023/24 i n respect of Laura?
Ignore the employment allowance.
A £6,624
B £3,892
C £5,368
D £4,954
LO3i

10 During 2023/24 Trim Ltd pays Belinda a monthly salary of £3,300. In addition, Trim Ltd paid Belinda a bonus of £4,000 in
December 2023. Belinda also attended the Trim Ltd Christmas party o n 1 8 December 2023 at a cost to Trim Ltd of £200
per head.
Requirement
What are the Class 1 Primary contributions d u e in respect of Belinda for December 2023?

LO3i

11 During 2023/24 Pirate Ltd pays Sue, aged 19, a salary of £52,000. The company provides her with a carthat has a cash-
equivalent benefit of £3,000.
Requirement
What are the Class 1 secondary contributions payable by Pirate Ltd in 2023/24 in respect of Sue?
Ignore the employment allowance.

LO3i

12 During 2023/24 Pirate Ltd pays Sue, aged 19, a salary of £52,000. The company provides her with a carthat has a cash-
equivalent benefit of £3,000.
Requirement
What are the Class 1 A contributions payable by Pirate Ltd in 2023/24 in respect of Sue?

LO3i

13 Hans is a sole trader employing only one worker, Olga, aged 42, on a n annual salary of £46,500.
Requirement
What are the Class 1 secondary contributions payable by Hans in 2023/24 in respect of Olga?

LO3i
1 4 During 2023/24 Rene Ltd pays Kamal, an apprentice aged 23, a salary of £20,000. He also receives shopping vouchers
with a cash value of £150 per month.
Requirement
What are the Class 1 secondary contributions payable by Rene Ltd in 2023/24 in respect of Kamal?
Ignore the employment allowance.

LO3i

15 During 2023/24 Rene Ltd pays Kamal, an apprentice aged 23, a salary of £20,000. He also receives shopping vouchers
with a cash value of £150 per month.
Requirement
What are the Class 1 primary contributions payable by Kamal for the month of May 2023?

LO3i

16 James has been trading for many years. His tax-adjusted trading profits for the last two years have been as follows.

Year ended 5 April 2023 41,000

Year ended 5 April 2024 58,350

Requirement
What are his Class 4 national insurance contributions for 2023/24?
A £4,686
B £4,120
C £3,555
D £2,559
LO3i
9 Capital gains tax - individuals

1 The Quack partnership has recently disposed of an office building. The office building was owned jointly by all the
partners. The office building was sold to a property developer.

Requirement
Who is liable to pay any capital gains tax due o n the disposal of the office building?
A Partnership
B Partners jointly
C Property developer
D Partners individually
LO 1e, 4a

2 Jamie entered into a contract with Annabelle to purchase a house. Contracts were exchanged o n 1 5 March 2024. The
contracts were completed a n d legal title therefore passed o n 15 April 2024. Once contracts had been exchanged neither
party could withdraw. Payment was not made until 17 April 2024 and Jamie did not physically move into the house until
1 8 April 2024.
Requirement
O n what date will Annabelle be treated as having disposed of the house for capital gains tax purposes?
A 15 March 2024
B 15 April 2024
C 17 April 2024
D 18 April 2024
LO 1e

3 Which of the following statements about capital gains is true?

A Assets which are inherited are treated as being acquired by the donee at the price originally paid by the donor.
B Wasting chattels bought and sold for more than £6,000 are chargeable to CGT.
C Stamp duty land tax paid o n the purchase of land may be deducted as part of cost o n a subsequent disposal of the
land.
D Where an asset is not sold at arm's length, the proceeds are deemed to equal cost so that no chargeable gain arises.
LO 4a, 4b

4 Katie purchased an antique vase in January 1990 for £13,000. She sold it for £5,600 in March 2024 and paid auctioneer's
fees of £800 for its sale.
Requirement
What is Katie's allowable loss on sale?
A £(7,800)
B £(8,200)
C £(7,400)
D £(7,000)
LO 4b
5 Freddy made two disposals during 2023/24.
For each of the two disposals select how the resulting gains should be treated to determine Freddy's total chargeable
gains for 2023/24.
Requirements
Gain of £4,500 o n the disposal of a caravan.
A Chargeable gain
B Exempt
Gain of £1,000 o n the sale of a sculpture. The sculpture originally cost £ 4r 000.
C Chargeable gain
D Exempt
LO4a

6 Thandie purchased a n antique chair in February 2001 for £2,500. She sold it in May 2023 for £1 1,1 50. She paid £560 as
commission to the agent who sold the chair for her.
Requirement
What is the chargeable gain o n the disposal of the chair?
A £8,650
B £8,583
C £7,650
D £8,090
LO 4b

7 David has net income for 2023/24 of £50,995. David has also made taxable gains of £33,422 for 2023/24.
Select how each of the following items will affect the calculation of David's capital gains tax liability for 2023/24, if at all.
Requirements
His unused annual exempt amount from 2022/23:
A Reduces capital gains tax payable
B Increases capital gains tax payable
C Has n o effect
Becoming a higher rate taxpayer for the first time:
D Reduces capital gains tax payable
E Increases capital gains tax payable
F Has n o effect
LO 4d

8 The Goose partnership has recently disposed of a chargeable asset. The chargeable asset was owned jointly by all the
partners.

Requirement
Who is liable to pay any capital gains tax due o n the disposal of the chargeable asset?
A Partners individually
B No capital gains tax is d u e
C Partnership
D Partners jointly
LO 1e
 9 In December 1 998 Jasmine purchased a house for £1 76,000. Jasmine has always rented out the house to tenants. In
December 2001 Jasmine installed a new bathroom a t a cost of £6,400. In December 2023 Jasmine sold the house for
£642,000. Jasmine also paid stamp duty land tax at 1% of the purchase price when she bought the house.
Requirement
What is the chargeable gain o n disposal of the house?

Chargeable gain £

LO 4b

10 Jed purchased a rare painting in August 2004 for £3,200. He sold it in August 2023 for £1 4,1 50. He paid £1 42 as
commission to the agent who sold the painting for him.
Requirement
What is the chargeable gain o n the disposal of the painting?
A £10,808
B £10,950
C £13,583
D £13,347
LO 4a, 4b

11 Which two of the following items are exempt assets for capital gains tax purposes?
A £1 5,000 of shares in an unquoted trading company
B A diamond necklace purchased for £1,000 and now worth £1 7,000
C A rare collection of snakes worth £320,000
D £10,000 of National Savings Certificates
LO4a

12 Which of the following disposals is a chargeable disposal for capital gains tax purposes?
A Bequest of a house in the will of a mother to her daughter
B Giftto a friend of £12,000 in National Savings Certificates
C G i f t t o a friend of a painting worth £1,000,000
D Gift of a painting to a charity when the painting was worth £300,000
LO4a

13 Which of the following statements about capital gains is true?

A CGT is chargeable o n individuals, partnerships and companies.
B Stamp duty land tax paid o n the purchase of land may not be deducted as part of cost o n a subsequent disposal of
the land.
C Assets which are inherited are treated as being acquired by the donee at their value at the time of the donor's death.
D Where an asset is sold by a n individual, any unused personal allowance can b e offset against their chargeable gains.
LO 1e, 4b