Q1 Brownee Ltd owns 95% of the ordinary share capital of Cookee Ltd and 100% of the

ordinary share capital of Bicci Ltd.

Cookee Ltd owns 75% of the ordinary share capital of Dohnut Ltd.
Bicci Ltd owns 58% of the ordinary share capital of Wayfer Ltd.

Which companies are within Brownee Ltd's chargeable gains group?


Bicci Ltd, Cookee Ltd and Dohnut Ltd

Bicci Ltd, Cookee Ltd, Dohnut Ltd and Wayfer Ltd

Bicci Ltd and Cookee Ltd

Bicci Ltd, Dohnut Ltd and Wayfer Ltd

Q2 Magill Motors Ltd has made the following purchases and disposals of shares in
Princetown Pilons plc over the years:
Transaction Transaction date Number of Total cost of proceeds (£)
type shares
Purchase 1 June 2002 40,000 55,000
Disposal 17 September 2024 12,000 97,000

The relevant indexation factors is:

June 2002 – December 2017 0.578

What is the indexed cost that should be deducted in calculating the chargeable
gain on the sale of the shares on 17 September 2024?

£31,790

£86,790

£26,037

£16,500

Q3 Which of the following statements about tax returns is INCORRECT?


The tax return comprises a main return form, together with supplementary pages for particular sources of income

 A partnership must file a separate return, and account for each partner’s tax on this return

If HM Revenue and Customs (HMRC) calculates the tax for the taxpayer, it merely does so based on the information provided and
does not judge the accuracy of it

An employee who only has employment income, with the tax collected under PAYE, is not required to complete a tax return

Q4 For the year ended 31 March 2025, Earlytime Ltd has taxable total profits of £220,000. The company also
received dividends of £13,000 from non-associated companies during the year.

What is Earlytime Ltd’s corporation tax liability for the year ended 31 March 2025?

Q5

DFB Ltd decided to change its accounting date and so had a 15-month period ended 31
March 2025.

By which date(s) must DFB Ltd file its corporation tax self-assessment tax
return(s) for the 15-month period ended 31 March 2025?

The return for the year ended 31 December 2024 must be filed by 31 October 2025. The return for the period ended 31 March 2025
must be filed by 31 December 2025.

One return for the 15-month period ended 31 March 2025 must be filed by 31 March 2026.

The return for the year ended 31 December 2024 must be filed by 31 December 2025. The return for the period ended 31 March
2025 must be filed by 31 March 2026.

The returns for the year ended 31 December 2024 and the period ended 31 March 2025 must both be filed by 31 March 2026.

Q6Mousehouse Ltd is a UK company that incorporated on 1 December 2024. The

company started to trade on 1 February 2025 and made up its first accounts for the
period to 31 August 2025.

By which date must Mousehouse Ltd notify HM Revenue and Customs (HMRC) of
its first accounting period?

1 February 2025

1 March 2025

1 May 2025

31 August 2026

Q7 Bass Boomers Ltd commenced trading on 1 January 2023. It has always had one
associated company. The company’s augmented profits have been as follows:
Year ended 31 December 2023 £452,000
Year ended 31 December 2024 £933,000
Year ended 31 December 2025 £1,012,000

What is the first year for which Bass Boomers Ltd will be required to pay its
corporation tax liability by quarterly instalments?

Year ended 31 December 2023

Year ended 31 December 2024

Year ended 31 December 2025

None of the years ended 31 December 2023, 2024 or 2025

Q8 Acasta Ltd owns 75% of the ordinary share capital of Barge Ltd and 100% of the
ordinary share capital of Coracle Ltd. Barge Ltd owns 75% of the ordinary share capital
of Dhow Ltd. Coracle Ltd owns 51% of the ordinary share capital of Eight Ltd.
Which companies, along with Coracle Ltd, are within Acasta Ltd's chargeable
gains group?


Barge Ltd, Dhow Ltd and Eight Ltd



Barge Ltd only



Barge Ltd and Dhow Ltd only



None of the other companies

Q9 Which of the following is the correct definition of an extra-statutory

concession?


A provision for the relaxation of the strict application of the law where it would lead to
anomalies or cause hardship


Supplementary information providing additional detail in relation to the general

principles set out in legislation


HM Revenue and Customs' interpretation of tax legislation



Guidance provided to HM Revenue and Customs' staff in interpreting and applying tax
legislation

Q10 Modal Ltd lets out an unfurnished investment property.

During the year ended 31 December 2025, the company received rental income of
£3,000 per month and paid electricity (relating to the rental property) of £200 per month.
The electricity payment for December 2025 was not paid until 30 January 2025.
Modal Ltd also paid interest of £1,200 per month on a loan taken out to finance the
purchase of the rental property.

What amount of property business income will be included in Modal Ltd's

corporation tax computation for the year ended 31 December 2025?


£33,600


£19,200


£33,800


£19,400

Q11 Somily Ltd filed its self-assessment corporation tax return for the year ended 31
December 2023 on 15 March 2026.

Identify, by clicking on the correct date on the timeline below, what the deadline
is for HM Revenue and Customs (HMRC) to start a compliance check enquiry into
Somily Ltd's corporation tax return for the year ended 31 December 2024.
 Q12 Three unconnected companies have the following results for corporation tax
purposes:

Company Current accounting Number of Taxable total TTP for previous

period associated profits (TTP) 12 month period
companies
(£) (£)

Asher Ltd Year ended 31 March 3 700,000 600,000

2024

Barton Ltd Four-month period 0 600,000 1,600,000

ended 31 December
2023

Chelfry Year ended 30 0 1,600,000 1,400,000

Ltd November 2023

All the companies have had the same number of associated companies for many years.

Which of the three companies will NOT have to pay corporation tax by quarterly
instalments for the current accounting period?


Asher Ltd


Barton Ltd only



Chelfry Ltd only



Barton Ltd and Chelfry Ltd

Q13 Lili Ltd commenced trading on 1 January 2024. The company incurred the following
expenditure prior to 1 January 2024:
£

30 November Initial market research 15,000

 £

2016

6 June 2019 Research into competitors 12,000

31 July 2023 Entertaining potential customers and 8,000

suppliers

15 December Donation to local school fair in 2,000

2023 exchange for advertising

What is the amount of Lili Ltd's deductible pre-trading expenditure in respect of

the year ended 31 December 2024?

Q14

Q 15 Oblong Ltd has had the following results:

 Year ended 31 March Year ended 31 March
2024 2025

(£) (£)

Trading profit/(loss) 79,400 (102,800)

Property business income 6,800 10,100

Qualifying charitable (1,600) (1,300)

donations

If Oblong Ltd makes a claim to relieve its trading loss of £102,800 for the year
ended 31 March 2025 against total profits for the year ended 31 March 2024, how
much of this loss will remain unrelieved?


£6,500


£16,600


£9,400


£23,400