The course

1
Start here
Section A: 15 two-mark objective test questions; Section B: three case-style questions of five two-mark objective test questions; Section C: one 10-mark and two 15-mark constructed response questions (the 15-mark questions on income tax and corporation tax); 3 hours, 100 marks; tax rates and allowances given; pass mark 50%
Free: A tour of the UK Taxation exam
2
The UK tax system and its administration: area A
About 1 to 2 Section A questions in each timed exam; Section B cases and the 10-mark Section C question can cover it
The UK tax system and its administration 14 questions
3
Income tax and NIC liabilities: area B
About 5 to 6 Section A questions in each timed exam; one 15-mark Section C question focuses on income tax
Free: Employment income and benefits 11 questionsTrading profits and capital allowances 12 questionsBasis of assessment, partnerships and trading losses 9 questionsProperty income, tax-exempt investments and pensions 10 questionsFree: The income tax computation 12 questions, 1 caseNational insurance contributions 6 questions
4
Chargeable gains for individuals: area C
About 2 Section A questions in each timed exam; Section B cases and the 10-mark Section C question can cover it
Capital gains tax: computing gains and the tax 9 questionsShares and capital gains tax reliefs 8 questions, 2 cases
5
Inheritance tax: area D
About 2 Section A questions in each timed exam; Section B cases and the 10-mark Section C question can cover it
Inheritance tax on lifetime gifts 8 questionsInheritance tax on death 8 questions, 2 cases
6
Corporation tax liabilities: area E
About 3 to 4 Section A questions in each timed exam; one 15-mark Section C question focuses on corporation tax
Corporation tax: taxable total profits 10 questionsCorporation tax: the liability and its payment 8 questions, 1 caseChargeable gains for companies 6 questionsCompany losses and groups 9 questions
7
Value added tax: area F
About 2 Section A questions in each timed exam; Section B cases and the 10-mark Section C question can cover it
VAT registration and the VAT liability 12 questionsVAT administration and special schemes 8 questions, 2 cases
8
Section C practice
4 constructed response questions of 10 and 15 marks: figures checked, written parts read by Mia.
Section C questions, the first free
9
Timed practice exams
Sections A and B of the exam on the clock, 60 marks in 108 minutes: 15 two-mark objective test questions, then 3 scenarios of 5 two-mark questions. Then Section C on the desk, read by Mia.
Practice exam 1, free Practice exam 2

		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

	£
Personal allowance	12,570
Transferable amount	1,260
Income limit	100,000

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

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:
Electric range
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%

Annual allowance – 2022–23	£40,000
– 2023–24 to 2025–26	£60,000
Minimum allowance	£10,000
Income limit	£260,000

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%

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

Standard rate	20%
Registration limit	£90,000
Deregistration limit	£88,000

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%

Nil rate band	£325,000
Residence nil rate band	£175,000
Rate of tax on excess – Lifetime rate	20%
– Death rate	40%

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%

Lifetime limit – business asset disposal relief	£1,000,000
– investors’ relief	£1,000,000
Rate of tax	14%

Class 1 Employee	£1 – £12,570 per year	Nil
	£12,571 – £50,270 per year	8%
	£50,271 and above per year	2%
Class 1 Employer	£1 – £5,000 per year	Nil
	£5,001 and above per year	15%
	Employment allowance	£10,500
Class 1A		15%
Class 4	£1 – £12,570 per year	Nil
	£12,571 – £50,270 per year	6%
	£50,271 and above per year	2%

Official rate of interest	3·75%
Rate of interest on underpaid tax	8·50%
Rate of interest on overpaid tax	3·50%

Taxpayer behaviour	Maximum penalty	Minimum penalty – unprompted disclosure	Minimum penalty – prompted disclosure
Deliberate and concealed	100%	30%	50%
Deliberate but not concealed	70%	20%	35%
Careless	30%	0%	15%

Up to 10,000 miles	45p
Over 10,000 miles	25p

The course

Start here

The UK tax system and its administration: area A

Income tax and NIC liabilities: area B

Chargeable gains for individuals: area C

Inheritance tax: area D

Corporation tax liabilities: area E

Value added tax: area F

Section C practice

Timed practice exams