8 Mary, who runs a business, purchased the following assets in the year e n d e d 31 December 2023.

12 February 2023 Computer 10,000

20 March 2023 New car -emissions of 0 g / k m a n d used wholly for business purposes 8,000

1 May 2023 Office furniture 2,000

Requirement
What are the maximum capital allowances available to Mary?

Capital allowances £

LO3e

9 Ming-Na began trading as a sole trader o n 1 September 2022 preparing her first set of accounts for the nine months
e n d e d 31 May 2023.
O n 1 November 2022 Ming-Na purchased a car with emissions of 40 g/km for £1 8,000. She uses this 60% for business
pu rposes.
Requirement
What are the maximum capital allowances available for the car for the nine months ended 31 May 2023?

Capital allowances £

LO3e

10 Harry is a sole trader. In the year ended 31 March 2024 he sold a car for £1 4,500 which had a tax written down value
brought forward at 1 April 2023 of £17,000. Harry used the car 70% for business purposes.
Requirement
What is the balancing adjustment on disposal of the car in the year ended 31 March 2024?
A Balancing allowance of £2,500
B Balancing charge of £2,500
C Balancing allowance of £1,750
D Balancing charge of £1,750
LO3e

1 1 Jack is a sole trader with accounts prepared to 31 May each year. O n 31 March 2023 Jack purchased a car with emissions
of 4 7 g/km for £1 8,000. The car is driven by one of his employees who uses it 20% of the time for private purposes.

Requirement
What is the maximum amount of capital allowances that can b e claimed in the year ended 31 May 2023 relating to this
car?

LO3e
12 Pauline began trading as a sole trader o n 1 October 2023, preparing her first set of accounts for the six months e n d e d 31
March 2024. O n 1 January 2024 she purchased a new car with emissions of 2 5 g/km for £16,000 (it is used only for
business purposes).
Requirement
What are the maximum amount of capital allowances Pauline may claim for the six months e n d e d 31 March 2024?
A £720
B £1,440
C £2,880
D £16,000
LO3e

13 Alexa is a sole trader. She has plant and machinery with a tax written down value of £560 o n 1 April 2023. During the nine-
month accounting period to 31 December 2023, she purchased a computer for £8,000.
Requirement
What are the maximum amount of capital allowances available to Alexa for the nine months ended 31 December 2023?
A £8,560
B £8,076
C £1,541
D £1,156
LO3e

14 Matilda is a sole trader and has prepared accounts for the year to 31 December 2023. At 1 January 2023 the business only
owned one asset, a machine. The £12,000 cost of the machine had been put in the main pool when it was acquired
several years ago. The balance o n the main p o o l at 1 January 2023 was £2,300. The machine was sold o n 3 0 June 2023 for
£400. Matilda's business is continuing, b u t she now leases all machinery.

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

LO3e

15 Maxine is a sole trader with a year ended 3 0 September 2023. The balance o n the main pool at 1 October 2022 was
£25,400. The only capital transaction was the disposal of a machine o n 1 0 August 2023 for £4,300. The machine had cost
£3,900 in April 2019.
Requirement
What are the maximum capital allowances that can be claimed b y Maxine for the year e n d e d 30 September 2023?

LO3e
16 Peter runs a business a n d prepared accounts for the six months to 31 March 2024. The tax written d o w n value of the main
pool at 1 October 2023 was £24,000. During the period of account, the following transaction took place.

20 December 2023 - Purchased new low-emission car 9,000

Requirement
What are the maximum capital allowances Peter may claim for the six months ended 31 March 2024?
A £5,940
B £9,000
C £11,160
D £13,320
LO3e

1 7 Charlotte, a sole trader, prepared accounts for the five months ended 30 June 2023. O n 2 3 May 2023 she purchased a
machine for £530,000.

Requirement
What are the maximum capital allowances that can be claimed in respect of this machine for the period ended 30 June
2023?
A £530,000
B £437,067
C £425,167
D £416,667
LO3e

18 Which of the following assets will not be in a single asset pool for capital allowance purposes?
A Com puter costing £10,000 with 30% private u se by the owner of the business
B Car with emissions of 45 g / k m costing £14,000 o n 1 0 June 2023 with 20% private use by one of the employees
C Car with emissions of 45 g / k m costing £1 3,000 o n 1 January 2024 with 35% private use by the owner of the business
D Delivery van costing £1 5,000 with 10% private use by the owner of the business
LO3e

19 Jamie is a sole trader with a year ended 31 January 2024. The balance o n the main pool at 1 February 2023 was £31,000.
The only capital transaction was the disposal of a machine o n 1 0 August 2023 for £5,300. The machine had originally cost
£9,900.

Requirement
What are the maximum capital allowances that can be claimed b y Jamie for the year ended 31 January 2024?

LO3e
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