ATX-UK is one 3 hours 15 minutes exam of 100 marks in two sections, and every question is compulsory. Every question is written, with both calculations and advice.
Length
3 hours 15 minutes
Section A
One 50-mark case study testing several taxes: 35 technical, 5 ethics and 10 professional skills marks
Section B
2 compulsory questions of 25 marks, together covering business and personal tax
Professional skills
10 marks in Section A and 5 in each Section B question
Law examined
The Finance Act 2025, tax year 2025/26
Pass mark
50% of 100 marks
Section A: 50 marks
One case study that tests several taxes. Its 50 marks are 35 technical marks, 5 ethics marks and 10 professional skills marks, and all four professional skills are examined: communication, analysis and evaluation, scepticism and commercial acumen.
Section B: 50 marks
Two compulsory questions of 25 marks, which between them cover business and personal tax. Each has 20 technical marks and 5 professional skills marks, from at least two of analysis and evaluation, scepticism and commercial acumen. Communication is not examined in Section B.
Calculations and narrative
In both sections you calculate and you explain. Questions are set in scenarios and can bring in more than one tax, planning and the way taxes interact, so a figure is usually there to support advice.
Try 3 questions
Short questions in the course’s own format, not ACCA’s: the exam itself is all written.
Question 1 · Course practice question · Gains reliefs2 marks
Capital gains reliefs
Jonah has held 10% of the voting shares in Yelland Ltd, an unquoted trading company, for eight years. In 2025/26 he gave all these shares to his daughter, making a gain of £150,000, and they jointly claim gift holdover relief.
At the date of the gift Yelland Ltd's assets were: premises and goodwill used in its trade £600,000; an investment property £200,000; inventory, trade receivables and cash £150,000.
What is Jonah's chargeable gain for 2025/26 after the claim? (2 marks)
£
Question 2 · Course practice question · Groups and consortia2 marks
Groups, consortia and the SSE
Vance Ltd prepares accounts to 31 March. It acquired 100% of Wexford Ltd, an investment company, in 2018 for £1,200,000. On 1 May 2020 Vance Ltd transferred a building to Wexford Ltd when the building was worth £500,000; Vance Ltd had bought it in January 2016 for £300,000. The indexation factor from January 2016 to December 2017 is 0.060.
On 1 December 2025 Vance Ltd sells all the shares in Wexford Ltd for £2,000,000. Wexford Ltd still owns the building, now worth £600,000. The substantial shareholding exemption does not apply.
What is Vance Ltd's total chargeable gain on the sale of the shares? (2 marks)
£
Question 3 · Course practice question · Residence and overseas2 marks
Residence and overseas income
Femi is UK resident and is not a qualifying new resident under the foreign income and gains regime. In 2025/26 he has a salary of £60,000 and rental income of £10,000 from a flat abroad, after allowable expenses. Tax of £1,500 was paid abroad on the rental income. He has no other income.
How much UK income tax is payable on the foreign rental income after double tax relief? (2 marks)
3 hours 15 minutes, for 100 marks in two sections. Every question is compulsory.
Does ATX-UK have multiple choice questions?
No. Every question is written, in a scenario: one 50-mark case study in Section A and two 25-mark questions in Section B. The short questions in this course are its own practice format.
What is the ATX-UK pass mark?
50% of the 100 marks.
Unofficial practice for the ACCA Advanced Taxation (ATX-UK) exam, not affiliated with ACCA. ACCA is a trademark of the Association of Chartered Certified Accountants, which does not endorse this course. Every question here is original. No VAT is charged.
Tax rates and allowances
The supplementary instructions and the tax rates and allowances, as the exam provides them (Finance Act 2025).
You should assume that the tax rates and allowances for the tax year 2025/26 and for the financial year to 31 March 2026 will continue to apply for the foreseeable future unless you are instructed otherwise.
Calculations and workings need only be made to the nearest £.
All apportionments should be made to the nearest month.
All workings should be shown.
Income tax
Normal rates
Dividend rates
Basic rate
£1 – £37,700
20%
8·75%
Higher rate
£37,701 – £125,140
40%
33·75%
Additional rate
£125,141 and over
45%
39·35%
Savings income nil rate band – Basic rate taxpayers
£1,000
Savings income nil rate band – Higher rate taxpayers
£500
Dividend nil rate band
£500
A starting rate of 0% applies to savings income where it falls within the first £5,000 of taxable income.
Personal allowance
£
Personal allowance
12,570
Transferable amount
1,260
Income limit
100,000
Where adjusted net income is £125,140 or more, the personal allowance is reduced to zero.
Residence status
Days in UK
Previously resident
Not previously resident
Less than 16
Automatically not resident
Automatically not resident
16 to 45
Resident if 4 UK ties (or more)
Automatically not resident
46 to 90
Resident if 3 UK ties (or more)
Resident if 4 UK ties
91 to 120
Resident if 2 UK ties (or more)
Resident if 3 UK ties (or more)
121 to 182
Resident if 1 UK tie (or more)
Resident if 2 UK ties (or more)
183 or more
Automatically resident
Automatically resident
Car benefit percentage
The relevant base level of CO2 emissions is 55 grams per kilometre.
The percentage rates applying to petrol cars (and diesel cars meeting the RDE2 standard) with CO2 emissions up to this level are:
51 grams to 54 grams per kilometre
16%
55 grams per kilometre
17%
The percentage for electric cars with zero CO2 emissions is 3%.
For hybrid-electric cars with CO2 emissions between 1 and 50 grams per kilometre, the electric range of the car is relevant:
130 miles or more
3%
70 to 129 miles
6%
40 to 69 miles
9%
30 to 39 miles
13%
Less than 30 miles
15%
Car fuel benefit
The base figure for calculating the car fuel benefit is £28,200.
Company van benefits
The company van benefit scale charge is £4,020, and the van fuel benefit is £769.
Vans producing zero CO2 emissions have a 0% benefit.
Individual savings accounts (ISAs)
The overall investment limit is £20,000.
Rent-a-room relief
The rent-a-room relief limit is £7,500.
Pension scheme limits
Annual allowance 2022/23
£40,000
2023/24 to 2025/26
£60,000
Minimum allowance
£10,000
Threshold income limit
£200,000
Income limit
£260,000
The maximum contribution which can qualify for tax relief without any earnings is £3,600.
Approved mileage allowances: cars
Up to 10,000 miles
45p
Over 10,000 miles
25p
Capital allowances: rates of allowance
Plant and machinery
Main pool
18%
Special rate pool
6%
Cars
New cars with zero CO2 emissions
100%
Second-hand cars with zero CO2 emissions
18%
CO2 emissions between 1 and 50 grams per kilometre
18%
CO2 emissions over 50 grams per kilometre
6%
Annual investment allowance
Rate of allowance
100%
Expenditure limit
£1,000,000
Enhanced capital allowances for companies
Main pool first year allowance
100%
Special rate pool first year allowance
50%
Structures and buildings allowance
Straight line allowance
3%
Cap on income tax reliefs
Unless otherwise restricted, reliefs are capped at the higher of £50,000 or 25% of income.
Corporation tax
Financial year
2023
2024
2025
Small profits rate
19%
19%
19%
Main rate
25%
25%
25%
Lower limit
£50,000
£50,000
£50,000
Upper limit
£250,000
£250,000
£250,000
Standard fraction
3/200
3/200
3/200
Marginal relief
(Upper limit – augmented profits) x standard fraction x taxable total profits / augmented profits
Quarterly instalments
Profit threshold
£1,500,000
Value added tax (VAT)
Standard rate
20%
Registration limit
£90,000
Deregistration limit
£88,000
Penalties for late VAT payments
Days late
Penalty
Up to 15 days
None
16 to 30 days
3%
More than 30 days
6% plus a daily penalty at an annual rate of 10%
Inheritance tax: nil rate bands and tax rates
Nil rate band
£325,000
Residence nil rate band
£175,000
Rate of tax on excess over nil rate band – Lifetime rate
20%
– Death rate
40%
Inheritance tax: taper relief
Years before death
Percentage reduction
More than 3 but less than 4 years
20%
More than 4 but less than 5 years
40%
More than 5 but less than 6 years
60%
More than 6 but less than 7 years
80%
Capital gains tax: tax rates
Lower rate
18%
Higher rate
24%
Annual exempt amount
£3,000
Capital gains tax: business asset disposal relief and investors’ relief