2 0 Janice is a sole trader with a year ended 31 December 2023.

On 1 May 2023 Janice bought a machine costing

£1,020,000.

Requirement
What are the maximum capital allowances that can be claimed b y Janice o n the machine for the year ended 31 December
2023?

LO3e

21 Murray and Nuri have been trading i n partnership for many years with a year e n d of 31 March.
The tax written d o w n values of their assets at 1 April 2023 were:

Murray's van - purchased 1 April 2017 Private use 40% 17,000

Nuri's van - purchased 1 July 201 7 Private use 30% 8,000

Nuri's van was sold o n 1 July 2023 for £6,000. Nuri intends to lease a van from this date.
Requirement
What are the partnership's maximum capital allowances for the year ended 31 March 2024?

LO3e
7 Trading profits - basis of assessment

1 Rafael, Samira andTadeo have been in partnership for many years. The partnership agreement allocates a salary of
£10,000 per annum to Samira and all partners receive 5% per annum o n their capital invested. The balance of any profits
is shared equally.
During the year e n d e d 31 March 2024 Rafael's capital account had a balance of £60,000, Samira's balance was £24,000
and Tadeo's was £38,000. The partnership made tax-adjusted trading profits of £125,000 in the year e n d e d 31 March
2024.

Requirement
What are the trading profits assessable o n Rafael in 2023/24?

LO 3f

2 Townshend ceased trading o n 30 November 2025. The recent tax-adjusted trading profits of the business are as follows.

Year ended 3 0 April 2024 38,000

Year ended 3 0 April 2025 34,000

Period ended 3 0 November 2025 23,000

What is Townshend's trading profit assessment for 2024/25?

A £34,333
B £34,000
C £38,000
What is Townshend's trading profit assessment for 2025/26?
D £23,000
E £25,833
F £57,000
LO3g

3 Jabir and Kadin began trading in partnership o n 1 September 2023, sharing profits equally. The partnership agreement
allocates an annual salary to Jabir of £8,000. For the year e n d e d 31 August 2024 the partnership had a tax-adjusted
trading profit of £105,000.
Requirement
What are the partners' assessable trading profits for 2023/24?
A Jabir £56,500; Kadin £48,500
B Jabir £32,958; Kadin £28,292
C Jabir £60,500; Kadin £52,500
D Jabir £35,292; Kadin £30,625
LO 3f, 3 g
4 Vai, Cleo and Frank have been in partnership for many years preparing accounts to 30 September each year The
partnership agreement indicates that all partners receive 5% per annum o n their capital invested. The balance of any
remaining profits is shared equally.
Vai's capital account had a balance of £50,000, Cleo's balance was £30,000 and Frank's was £40,000. The partnership
made tax-adjusted trading profits of £1 50,000 in the year ended 30 September 2024, a n d £200,000 i n the year e n d e d 30
September 2025.
Requirement
What are the trading profits assessable o n Cleo in 2024/25?

LO3f

5 Tom and Dick have been trading in partnership for many years, sharing profits in the ratio 2:1. The partnership agreement
allocates an annual salary to Tom of £10,000. The partnership had the following results.
Year e n d e d 31 October 2024: £120,000
Year e n d e d 31 October 2025: £150,000

Requirement
What are the partners' assessable trading profits for 2024/25?
A Tom £80,000; Dick £40,000
B Tom £91 ,667; Dick £40, 834
C Tom £100,000; Dick £50,000
D Tom £103,333; Dick £46,667
LO3f

6 Raanan ceased trading o n 31 December 2024. The recent tax-adjusted trading profits of his business are as follows.

Year ended 31 January 2023 40,000

Year ended 31 January 2024 25,000

Period ended 31 December 2024 1 5,000

Requirement
What is Raanan' s trading profit assessment for 2024/25?

LO3i

7 Johanna started trading o n 1 January 2023, b u t her business quickly ran into cash flow problems and she ceased to trade
o n 2 8 February 2025. The accounts for the year ended 31 December 2023 showed taxable trading profits of £6,000, and
those for the period from 1 January 2024 to 28 February 2025 showed taxable trading profits of £2,800.
Requirement
What is Johanna's taxable trading profit for 2024/25?
A £2,800
B £2,400
C £2,200
D £5,100
LO3g
 8 Trevor's business ceased trading o n 30 April 2024. The recent tax-adjusted trading profits of his business are as follows.

Year ended 3 0 September 2022 24,000

Year ended 3 0 September 2023 30,000

Period ended 3 0 April 2024 25,000

Requirement
What are Trevor's taxable tradi ng p rofits for 2024/25?
A £36,429
B £2,083
C £25,000
D £3,571
LO3g

9 Obed began trading o n 1 July 2023, preparing his first accounts to 30 June 2024. The adjusted trading profits for the year
e n d e d 30 June 2024 were £24,000.
Requirement
What is Obed's assessable trading profit for 2023/24?
A £6,000
B £18,000
C £20,000
D £24,000
LO3g

1 0 Belinda began trading o n 1 January 2023, preparing her first accounts to 30 June 2024. The adjusted trading profits for
the period ended 30 June 2024 were £42,000.

Requirement
Which of the following statements is correct?
A £28,000 is taxable in 2023/24, representing the period 6 April 2023 to 5 April 2024.
B £28,000 is taxable in 2023/24, representing the year ended 30 June 2024.
C £7,000 is taxable in 2023/24, representing the period 1 January 2023 to 5 April 2024.
D £42,000 is taxable in 2023/24, representing the period to 30 June 2024.
LO3g

11 Ray began trading on 1 July 2023, preparing his first accounts to 31 December 2023. The adjusted trading profits for the
first two periods were:

6 m/e 31 December 2023 60,000

1 2 m / e 3 1 December 2024 (estimate) 100,000

Requirement
What is the taxable trading income for 2023/24?

LO3g
12 Audrey and Elaine have been in partnership for many years. Both partners are allocated interest of 5% per annum o n their
capital invested. The balance of any profits is shared equally.
During the year e n d e d 31 March 2024 Audrey's capital account had a balance of £50,000, Elaine's was £20,000. The
partnership made adjusted trading profits of £100,000 in the year ended 31 March 2024.
Requirement
What are the trading profits assessable o n Audrey in 2023/24?

LO3f

13 David and Doreen started i n partnership together o n 1 July 2023 sharing profits in the ratio 2:1. The partnership taxable
trading profit for the year ended 30 Ju ne 2024 is £1 20,000.
Requirement
What is the amount of trading profits taxable o n Doreen in 2023/24?
A £80,000
B £60,000
C £40,000
D £30,000
LO 3f, 3 g

1 4 Florian ceased trading o n 3 0 September 2024. The recent tax-adjusted trading profits of his business are as follows:

Year ended 31 January 2023 28,500

Year ended 31 January 2024 21,200

Period ended 3 0 September 2024 1 7,430

Requirement
What is Florian's taxable trading income for 2024/25?

LO3g

15 Leroy and Annabelle have been in partnership for many years. The partnership agreement allocates partners' interest at
5% pa o n capital invested. The balance of any profit is shared in the ratio 2:3.
O n 31 March 2023 Leroy's capital account had a balance of £35,000 and Annabelle's balance was £23,000. For the year
e n d e d 31 March 2024 the partnership had a tax-adjusted trading profit of £98,500.

Requirement
What is Leroy's assessable trading profit for 2023/24?
A £41,150
B £39,990
C £39,400
D £38,240
LO3f
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
1 4 Harriet made two d isposa Is duri n g 2023/24.
For each of the disposals, select how the resulting gains should be treated to determine Harriet's total chargeable gains
for 2023/24.
Requirements
Gain of £2,500 o n the disposal of a car:
A Chargeable gain
B Exempt
Gain of £3,000 o n the sale of a greyhound, which originally cost £4,000:
C Chargeable gain
D Exempt
LO4a

15 Which of the following does not pay tax o n its capital gains?
A NSPCC, a registered charity
B WFT pic, a quoted company
C George and Bert, who are in partnership together
D Bert, in his own right as an individual
LO4a

16 Which of the following is not a chargeable disposal made by Gordon?

A The sale of a building used by Gordon's business, to a third party
B The gift of shares to Gordon’s son
C The loss of a painting valued at £50,000 during a fire at Gordon's house
D The gift of an antique table valued at £40,000 to Gordon's daughter o n his death
LO4a

17 Peter purchased a holiday home in July 2003. The holiday home cost £100,000 and he paid solicitor's fees of £2,500
relating to the purchase.
During 2005 he spent £2,800 o n a garage for the holiday home and £580 on repairs to the plaster work when there was a
flood. Peter anticipates selling the house within the next few months.

Requirement
The total allowable expenditure o n the disposal of the holiday home will be:
A £100,000
B £102,500
C £105,300
D £105,880
LO 4b

18 Which two of the following are exempt wasting chattels for the purposes of capital gains tax?
A Office furniture, purchased for use only in Jack's business office on which he claims capital allowances
B A racehorse purchased as an investment by Marnie
C Goodwill of a computer manufacturing business with an expected life of 2 0 years
D A caravan, purchased by David for use o n family holidays
LO4a
1 9 Identify whether each of the following disposalswill be chargeable or exempt
Requirements
Javier sold a painting at auction and received £5,900 after deducting auctioneers' fees of £310. The painting had
originally cost him £3,500.
A Chargeable
B Exempt
Savion received £2,600 for some shares that h e sold after deducting £1 50 of fees. The shares originally cost him £800.
C Chargeable
D Exempt
LO4a

2 0 Lourdes bought an antique brooch for £4,000 in October 2004. In January 2024, she sold it o n the internet a n d received
£6,200 after deduction of £100 fees.
Requirement
What is Lourdes’s chargeable gain?
A £333
B £500
C £2,200
D £2,300
LO 4b

21 Which of the following may result in a chargeable gain?

A A gift of a painting worth £250,000 to a local art gallery
B A sale of shares in Beagle pic by the RSPCA, a registered charity
C A gift of antique jewellery worth £25,000 by Robert, to his daughter as a wedding gift
D Jen sold gilt e d g e d securities val ued at £40,000 to her friend Arthur for £2 7,000
LO4a

22 O n which two of the following disposals must a chargeable gain/allowable loss be calculated?
A A sale of shares in Check pic b y Cristiano. The shares were held in an ISA.
B Torey cashed in his National Savings Certificates in order to raise money for his wedding.
C Townsend lost an antique ring valued at £8,000 and received a cheque from the insurance company f o r t h a t sum.
D Toshi sold a painting for £5,000. It was given to him several years ago when his grandfather died. At that time it was
worth £6,400.
LO4a

23 Fraser sold a diamond brooch at auction in June 2023 and received £7,900 after deduction of auctioneer's fees of £300.
The brooch had cost him £6,100 i n July 2001 . Since then he had spent £250 in August 2002 having it cleaned and
repaired. In September 2005 he paid £400 to have additional diamonds and rubies added to the brooch.

Requirement
What is Fraser's chargeable gain o n disposal of the brooch?

LO 4b
2 4 Identify whether each of the following disposalswill be chargeable or exempt

Requirements
Erwiin sold a painting at auction a n d received £6,100 after deducting auctioneer's fees of £200. The painting had originally
cost him £3,500.
A Chargeable
B Exempt
Erica received £5,900 for jewellery that she sold. The jewellery originally cost her £5,900 plus auctioneer's fees of £200.
C Chargeable
D Exempt
LO4a

25 Ervin bought an antique vase for £4,000 in October 2007. In January 2024, he sold it for £6,800.

Requirement
Assuming the annual exempt amount is used b y other disposals, Ervin's taxable gain on the vase is:
A £0
B £1,333
C £2,000
D £2,800
LO 4b

26 In February 2006 Ebony purchased a painting for £5,900. She sold it at auction for £5,600 after deducting £1 50 of
auctioneer's fees in October 2023.
Requirement
What is the allowable loss o n disposal?
A £0
B £(300)
C £(50)
D £(1 50)
LO 4b

27 Which two of the following assets are exempt assets for capital gains tax purposes?
A An antique diamond necklace worth £3,000 {cost £2,500}
B A small hotel
C An oil painting worth £1 2,000 (cost £9,000}
D Fixed plant and machinery sold at a profit
E Shares held in an ISA
LO4a
28 O n 1 December 2023 David sold his holiday cottage for £200,000. He had bought the cottage in July 2000. The list below
shows David's expenditure o n the cottage prior to its sale.

Requirement
Which three of these costs will be deducted i n calculating David's chargeable gain?
A Legal fees o n purchase - £800
B Purchase price - £110,000
C Redecoration costs - £2,1 00
D Cost of building a garage - £7,500
E Replacement of a few roof tiles after a storm - £1 50
LO 4b

2 9 Martha has recently made two disposals. For each of the two disposals select how the resulting gains or losses should be
treated in the computation of Martha's taxable gains.

Requirements
Gain of £3,600 o n the sale of goodwill in her ice cream van business.
A Chargeable gain
B Exempt
Loss of £2,000 o n the sale of a diamond necklace which had cost £4,000.
C Allowable capital loss
D Exempt
LO4a

3 0 Joshua has draft taxable gains of £30,500 for 2023/24 including the two items below.
Select how Joshua's draft taxable gains will be affected b y the correct treatment of each item.
Requirements
A gain of £4,200 o n the sale of his 1 0-year-old racehorse.
A N o effect
B Increase
C Decrease
Auctioneer's fees of £500 have been deducted in arriving at the £13,400 gain o n sale of an antique sculpture at a n
auction.
D N o effect
E Increase
F Decrease
LO 4c

31 O n 1 January 2024 Anna sold a n office building for £500,000 before paying legal fees of £24,700. She had bought the
building for £280,000 in July 2010.
Anna made no other disposals of chargeable assets during 2023/24. She had taxable income of £26,700 in 2023/24 after
deduction of her personal allowance.
Requirement
What is Anna's capital gains tax liability for 2023/24?
A £36,760
B £37,960
C £35,503
D £37,860
LO 4d
32 Becky sold a necklace for £56,000 in January 2024, incurring auctioneer's fees of £800. Becky had inherited the necklace
from her mother o n her mother's death in May 2007 when it was worth £20,000. Becky's mother had b o u g h t the necklace
for £5,000 in January 1993.
Becky made n o other disposals of chargeable assets during 2023/24. She had taxable income of £60,000 i n 2023/24.
Requirement
What is Becky's capital gains tax liability for 2023/24?
A £5,840
B £8,840
C £7,040
D £6,000
LO 4d

33 Jeremy has made two disposals. For each of the two disposals below, select how the gain or loss should be treated in the
computation of Jeremy's taxable gains.

Requirements
Gain of £1 3,000 o n shares in an ISA:
A Chargeable gain
B Exempt
Loss of £3,000 o n shares held directly by Jeremy which had cost £5,000:
C Allowable capital loss
D Exempt
LO4a

3 4 Which of the following may result in a chargeable gain?

A Sale of a vintage car for £20,000 which originally cost £1 2,000
B Gift of cash of £50,000 from Jamil to his daughter to use as a house deposit
C Sale for £5,000 of the goodwill of a trading business by Jack
D Gift of premium bonds by Lisa to her daughter as a wedding gift
LO4a

35 In March 1990, Matthew purchased a n office for £641,000. Matthew sold the office in March 2024 for £1,250,400,
incurring £120,000 estate agents' fees o n the sale.
Matthew made no other disposals of chargeable assets during 2023/24. Matthew has taxable income of £33,330 in
2023/24 after deduction of his personal allowance.
Requirement
What is Matthew's capital gains tax liability for 2023/24?
A £97,443
B £96,243
C £96,680
D £120,243
LO 4d
36 Jenny owned a set of two antiques which cost her £4,000 in January 1 990.
In September 2023, she sold one of the antiques to Helen for £7,000. The other antique was valued at £8,000 at this time.
In October 2023, she sold the other antique to Helen's wife, Shona, for £10,000.
Helen and Shona are connected persons for CGT purposes.
Requirement
What is the cost to be used in the calculation of Jenny's gain on disposal to Shona in October 2023?
A £4,000
B £2,133
C £2,000
D £1,867
LO4b

37 Tiny owned a set of two sparkly antiques which they sold to Deborah as follows:

Antique 1 Antique 2 Total

Date of sale 1 July 2023 1 November 2023

Sales proceeds £5,100 £3,200 £8,300

Gain calculated using part disposal formula to £3,100 £1,400 £4,500

determine cost

Requirement
What is the chargeable gain o n the disposal of Antique 1 ?
A £3,833
B £3,100
C £2,355
D £1,917
LO 4b

38 In February 2005 Nuria purchased a painting for £6,700. She sold it at auction for £4,600 after deducting £200 of
auctioneer's fees in October 2023.

Requirement
What is the allowable loss on disposal?
A £(2,300)
B £(2,100)
C £(700)
D £(900)
LO 4b
39 O n 1 December 2023 Claire sold a painting for £50,500 which she had bought, unframed, from the artist for £8,000 in
2003, She had paid £1,300 to have the painting framed before sale.
Claire made no other disposals of chargeable assets during 2023/24. She had taxable income of £34,700 in 2023/24 after
deduction of her personal allowance.
Requirement
What is Claire's capital gains tax liability for 2023/24?
A £7,040
B £7,940
C £7,000
D £6,740
LO 4d

40 Which of the following statements is correct?

A For individuals and companies there is an annual exempt amount available to reduce the amount of gains taxable
each year.
B A gain made by an individual on the sale of a vintage car at auction will be liable to capital gains tax.
C Capital gains tax is payable by individuals and companies on their taxable gains.
D Individuals will have a chargeable gain on disposal of goodwill from their business.
LO 1d, 4b

41 Justin entered into a contract with Matthew to purchase a rare art collection. Contracts were exchanged on 1 August 2023
subject to an independent valuation being done. The valuation took place on 1 September 2023. Legal title finally passed
on 5 September 2023. Payment was not made until 7 September 2023.
Requirement
On what date will Matthew be treated as having disposed of the art collection for capital gains tax purposes?
A 1 August 2023
B 1 September 2023
C 5 September 2023
D 7 September 2023
LO 1e
1 0 Corporation tax

1 In January 2019, Sink Ltd purchased a property for £250,000. In June 201 9 Sink Ltd built an extension to the property
costing £20,000, however this was subsequently demolished in 2020 and replaced with a larger extension costing
£35,000. In September 2023 Sink Ltd sold the property.

Requirement
What is the total allowable cost of the factory in computing Sink Ltd's chargeable gain?
A £250,000
B £270,000
C £285,000
D £305,000
LO 4b

2 Pineapple pic sold an antique writing desk which had been purchased in January 201 8 for £1 8,000. It was sold for £3,200
in January 2024. The proceeds were received net of selling fees of £400.
Requirement
What is Pineapple pic's allowable loss?
A £0
B £(12,400)
C £(1 5,200)
D £(12,000)
LO 4b

3 Shower pic has made two disposals in its year ended 31 August 2023.
For each of the two disposals select how the resulting gains should be treated in the calculation of Shower pic's
chargeable gains.
Requirements
Gain of £24,000 o n the disposal of a rare African snake which had not been used in the business.
A Chargeable gain
B Exempt
Gain of £1,100 o n the sale of an antique chair. The chair originally cost £5,000.
C Chargeable gain
D Exempt
LO4a