ACCA
Applied Skills
Taxation (TX‐UK)
(Finance Act 2019)
EXAM KIT
For June 2020 to March 2021 examination sittings
T X– U K: TAXA TION ( FA2019 )
British Library Cataloguing‐in‐Publication Data
A catalogue record for this book is available from the British Library.
Published by:
Kaplan Publishing UK
Unit 2 The Business Centre
Molly Millar’s Lane
Wokingham
Berkshire
RG41 2QZ
ISBN: 978‐1‐78740‐416‐8
© Kaplan Financial Limited, 2019.
Printed and bound in Great Britain.
The text in this material and any others made available by any Kaplan Group company does not
amount to advice on a particular matter and should not be taken as such. No reliance should be
placed on the content as the basis for any investment or other decision or in connection with any
advice given to third parties. Please consult your appropriate professional adviser as necessary.
Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to
any person in respect of any losses or other claims, whether direct, indirect, incidental,
consequential or otherwise arising in relation to the use of such materials.
All rights reserved. No part of this examination may be reproduced or transmitted in any form or
by any means, electronic or mechanical, including photocopying, recording, or by any information
storage and retrieval system, without prior permission from Kaplan Publishing.
Acknowledgements
These materials are reviewed by the ACCA examining team. The objective of the review is to
ensure that the material properly covers the syllabus and study guide outcomes, used by the
examining team in setting the exams, in the appropriate breadth and depth. The review does not
ensure that every eventuality, combination or application of examinable topics is addressed by
the ACCA Approved Content. Nor does the review comprise a detailed technical check of the
content as the Approved Content Provider has its own quality assurance processes in place in this
respect.
The past ACCA examination questions are the copyright of the Association of Chartered Certified
Accountants. The original answers to the questions from June 1994 onwards were produced by
the examiners themselves and have been adapted by Kaplan Publishing.
P.2
KA PLAN PUBLISHING
CONTENTS
Page
Index to questions and answers
P.5
Analysis of past exams
P.15
Exam technique
P.19
Exam specific information
P.23
Kaplan’s recommended revision approach
P.27
Kaplan’s TX examination revision plan
P.29
Tax rates and allowances
P.39
Time limits and election dates
P.45
Section
1
Practice income tax and national insurance questions
2
Practice chargeable gains questions
3
Practice inheritance tax questions
109
4
Practice corporation tax questions
129
5
Practice value added tax questions
177
6
Answers to practice income tax and national insurance questions
205
7
Answers to practice chargeable gains questions
389
8
Answers to practice inheritance tax questions
455
9
Answers to practice corporation tax questions
497
10
Answers to practice value added tax questions
593
11
Specimen exam questions
629
12
Answers to specimen exam questions
643
KA PLAN PUBLISHING
1
77
P .3
T X– U K: TAXA TION ( FA2019 )
Key features in this edition
In addition to providing a wide ranging bank of real past exam questions, we have also included
in this edition:

An analysis of all of the recent examinations.

Exam specific information and advice on exam technique.

Our recommended approach to make your revision for this particular subject as effective
as possible. This includes step by step guidance on how best to use our Kaplan material
(study text, pocket notes and exam kit) at this stage in your studies.

A wealth of past real examination questions adapted to the new examination style with
enhanced tutorial answers and packed with specific key answer tips, technical tutorial
notes and exam technique tips from our experienced tutors.

Complementary online resources including full tutor debriefs and question assistance to
point you in the right direction when you get stuck.
You will find a wealth of other resources to help you with your studies on the following sites:
www.mykaplan.co.uk
www.accaglobal.com/en/student.html
Quality and accuracy are of the utmost importance to us so if you spot an error in any of our
products, please send an email to mykaplanreporting@kaplan.com with full details, or follow the
link to the feedback form in MyKaplan.
Our Quality Coordinator will work with our technical team to verify the error and take action to
ensure it is corrected in future editions.
P.4
KA PLAN PUBLISHING
INDEX TO QUESTIONS AND ANSWERS
INTRODUCTION
All TX exams have been computer‐based exams (CBEs) from the June 2019 sitting, if you would
like further information on sitting a CBE TX examination please contact either Kaplan or the ACCA.
As a result of changes to the TX exam format over time, the majority of past exam questions in
their original format are not representative of current TX examination questions. The questions
contained in this exam kit are therefore based on past exam questions but it has been necessary
to adapt them to ensure that they are representative of questions in the examinations. The
adaptations have been made to reflect the new style of exam, new legislative changes in recent
Finance Acts, Tax law changes and IFRS® Standards terminology. We have also included new
topics brought into the syllabus in some questions.
Many of the questions within the kit are past ACCA exam questions, and the more recent
questions (from 2005) are labelled as such in the index. Note that if a question within this kit has
been adapted or changed in any way from the original version, this is indicated in the end column
of the index below with the mark (A).
Also included are the marking schemes for past ACCA examination questions to assist you in
understanding where marks are earned and the amount of time to spend on particular tasks. Note
that if a question has been changed from the original version, it will have also been necessary to
change the original ACCA marking scheme. Therefore, if a question is marked as ‘ADAPTED’ you
should assume that this also applies to the marking scheme.
A number of questions included in the exam kit are referenced to two examination sittings e.g.
March/June 2017. This is as a result of a change in policy made by the ACCA regarding the release
of examination questions. Previously, examinations were released in their entirety. The ACCA now
release a selection of questions from the March/June and September/December examinations.
Therefore, questions referenced as such are taken from the sample released by the ACCA.
KA PLAN PUBLISHING
P.5
T X– U K: TAXA TION ( FA2019 )
KEY TO THE INDEX
ANSWER ENHANCEMENTS
We have added the following enhancements to the answers in this exam kit:
Key answer tips
All answers include key answer tips to help your understanding of each question.
Tutorial note
All answers include tutorial notes to explain some of the technical points in more detail.
Tutor’s top tips
For selected questions, we ‘walk through the answer’ giving guidance on how to approach the
questions with helpful ‘tips from a top tutor’, together with technical tutor notes.
These answers are indicated with the ‘footsteps’ icon in the index.
Within the questions in the exam kit you will see the following icons, shown in the question
requirements:
 = word processing
 = spreadsheet
The icons highlighting the constructed response workspace tool alongside some of the questions
are for guidance only – it is important to recognise that each question is different and that the
answer space provided by ACCA in the exam is determined by both the technical content of the
question as well as the quality assurance processes ACCA undertakes to ensure the student is
provided with the most appropriate type of workspace.
P.6
KA PLAN PUBLISHING
INDEX TO QU ES TIO NS AND ANSWE RS
ONLINE ENHANCEMENTS
Question debrief
For selected questions, we recommend that they are to be completed in full exam conditions
(i.e. properly timed in a closed book environment).
In addition to the examining team’s technical answer, enhanced with key answer tips and tutorial
notes in this exam kit, online you can find an answer debrief by a top tutor that:

works through the question in full

points out how to approach the question

advises you how to ensure that the easy marks are obtained as quickly as possible, and

emphasises how to tackle exam questions and exam technique.
These questions are indicated with the ‘clock’ icon in the index.
Online question enhancements and answer debriefs will be available on MyKaplan at:
www.mykaplan.co.uk
KA PLAN PUBLISHING
P.7
T X– U K: TAXA TION ( FA2019 )
PRACTICE INCOME TAX AND NATIONAL INSURANCE
QUESTIONS
Page number
SECTION A OBJECTIVE TEST QUESTIONS
Question
Answer
1
205
Past exam
(Adapted)
SECTION B OBJECTIVE TEST CASES
Income tax basics and employment income
89
Philip & Charles
27
240
Dec 11 (A)
90
Kim Baxter
29
243
Jun 08 (A)
31
246
Dec 06 (A)
Income tax basics and income from self‐employment
91
Foo Dee
SECTION C CONSTRUCTED RESPONSE QUESTIONS
Income tax basics and employment income
92
Array Ltd
33
247
Dec 16 (A)
93
Martin
34
251
Sep/Dec 18 (A)
94
Kaya
36
255
Mar/Jun 18
95
Patience
37
258
Mar/Jun 16 (A)
96
Alimag
38
262
Sep/Dec 17
97
Dill
39
265
Sep/Dec 17
98
Richard Tryer
41
269
Jun 14 (A)
99
Petula
42
273
Mar/Jun 17 (A)
(A)
Income tax basics and income from self‐employment
100
Carol Courier
44
277
101
Idris Williams
45
279
102
Ethel
46
282
103
Sam White
47
286
Jun 08 (A)
104
George
48
289
Mar/Jun 16 (A)
105
Sophia Wong
49
292
Dec 12 (A)
106
Fergus
50
298
Jun 15
107
Dembe
50
300
Mar/Jun 19(A)
108
Fang, Hong and Kang
42
302
Dec 13
109
Na Style
53
307
Dec 09 (A)
P.8
KA PLAN PUBLISHING
INDEX TO QU ES TIO NS AND ANSWE RS
Page number
Question
Answer
Past exam
(Adapted)
Income tax basics and income from self‐employment
110
Zhi
53
311
Mar/Jun 17 (A)
111
Tim Burr
55
314
Jun 11 (A)
112
Richard Feast
56
318
Dec 13 (A)
113
Tonie
58
322
Mar/Jun 19 (A)
114
Danh
59
325
Mar/Jun 18
Trading losses
115
Norma
61
328
(A)
116
Ashura
62
332
Sep 16 (A)
117
Dee Zyne
63
335
Jun 05 (A)
118
Samantha Fabrique
64
337
Dec 07 (A)
119
Michael and Sean
64
341
Jun 12
Partnerships
120
Peter, Quinton and Roger
66
346
(A)
121
Ae, Bee, Cae and Dee
66
348
Dec 08 (A)
122
Auy Man and Bim Men
67
351
Jun 10 (A)
123
Daniel, Francine and Gregor
69
357
Sept/Dec 15
Pensions and NIC
124
John Beach
70
360
Jun 13 (A)
125
Kat
71
366
Sep/Dec 18 (A)
126
Ann, Basil and Chloe
71
370
Dec 08 (A)
127
Jack
72
375
Dec 16 (A)
Self‐assessment
128
Pi Casso
73
379
Jun 08 (A)
129
Ernest Vader
74
383
Jun 10 (A)
130
Sophie Shape
75
386
Jun 15 SP (A)
KA PLAN PUBLISHING
P.9
T X– U K: TAXA TION ( FA2019 )
PRACTICE CHARGEABLE GAINS QUESTIONS
Page number
SECTION A OBJECTIVE TEST QUESTIONS
Question
Answer
77
389
Past exam
(Adapted)
SECTION B OBJECTIVE TEST CASES
Individuals – capital gains tax
163
Michael Chin
87
404
Jun 05 (A)
164
Bo
89
407
Dec 09 (A)
165
Alphabet Ltd
90
410
Jun 11 (A)
166
Jorge Jung
92
412
Dec 11 (A)
167
Albert and Charles
93
414
Dec 13 (A)
168
Zoyla
95
417
Dec 16 (A)
169
Hali and Goma
96
418
Mar/Jun 19 (A)
Companies – chargeable gains
170
Hawk Ltd
98
420
Dec 08 (A)
171
Kat Ltd
100
423
Sep 16 (A)
Dec 07 (A)
SECTION C CONSTRUCTED RESPONSE QUESTIONS
Individuals – capital gains tax
172
David and Angela Brook
102
426
173
Bill Ding
103
530
174
Jerome
103
433
Mar/Jun 16 (A)
175
Ginger and Nigel
104
436
Jun 13 (A)
176
Mick Stone
105
440
Jun 14 (A)
177
Ruby
105
443
Sept/Dec 15 (A)
178
Daljeet
106
446
Companies – chargeable gains
179
Forward Ltd
107
449
(A)
180
Luna Ltd
108
451
Jun 15
P.10
KA PLAN PUBLISHING
INDEX TO QU ES TIO NS AND ANSWE RS
PRACTICE INHERITANCE TAX QUESTIONS
Page number
SECTION A OBJECTIVE TEST QUESTIONS
Question
Answer
109
455
Past exam
(Adapted)
SECTION B OBJECTIVE TEST CASES
200
Lebna and Lulu
115
463
Mar/Jun 19 (A)
201
Tom
117
465
Dec 12 (A)
202
Afiya
119
468
Dec 13 (A)
203
Roman
120
471
Dec 16 (A)
204
Adana
122
473
Sep 16 (A)
SECTION C CONSTRUCTED RESPONSE QUESTIONS
205
Blu
124
475
Dec 11 (A)
206
Jack and Tom
125
479
Dec 12 (A)
207
Pere Jones
125
482
Jun 13 (A)
208
Kendra Older
126
486
Jun 14 (A)
209
James
127
489
Mar/Jun 16 (A)
210
Marcus
128
493
Sept/Dec 2015
PRACTICE CORPORATION TAX QUESTIONS
Page number
SECTION A OBJECTIVE TEST QUESTIONS
Past exam
(Adapted)
Question
Answer
129
497
141
513
Jun 13 (A)
143
516
Pilot 07 (A)
145
519
Jun 13 (A)
SECTION B OBJECTIVE TEST CASES
Corporation tax basics and administration
246
Greenzone Ltd
Relief for trading losses
247
Loser Ltd
With group aspects
248
Deutsch Ltd
KA PLAN PUBLISHING
P.11
T X– U K: TAXA TION ( FA2019 )
Page number
Question
Answer
Past exam
(Adapted)
SECTION C CONSTRUCTED RESPONSE QUESTIONS
Corporation tax basics and administration
249
Tenth Ltd and Eleventh Ltd
146
522
Sep 16 (A)
250
Aoede Ltd, Bianca Ltd and Charon Ltd
147
525
Mar/Jun 19 (A)
251
Solo Ltd
149
529
Mar/Jun 18 (A)
252
Online Ltd
150
534
Mar/Jun 17 (A)
253
Stretched Ltd
152
537
Jun 05 (A)
254
Starfish Ltd
152
539
Dec 11 (A)
255
Heavy Ltd
154
544
Jun 12 (A)
256
Softapp Ltd
156
547
Dec 13 (A)
257
E‐Commerce plc
158
552
Dec 14 (A)
258
Lucky Ltd
160
556
Sept/Dec 15
Relief for trading losses
259
Last Orders Ltd
161
561
Sep/Dec 17 (A)
260
Wretched Ltd
163
565
Dec 16 (A)
261
Retro Ltd
165
568
Jun 15
With group aspects
262
Music plc
167
573
Dec 05 (A)
263
Jump Ltd
168
575
Mar/Jun 16 (A)
264
Ash Ltd
170
579
Sep/Dec 18 (A)
265
Clueless Ltd
172
583
Dec 12 (A)
266
Long Ltd and Road Ltd
175
588
Jun 14 (A)
P.12
KA PLAN PUBLISHING
INDEX TO QU ES TIO NS AND ANSWE RS
PRACTICE VALUE ADDED TAX QUESTIONS
Page number
SECTION A OBJECTIVE TEST QUESTIONS
Question
Answer
177
593
Past exam
(Adapted)
SECTION B OBJECTIVE TEST CASES
288
Thidar
184
599
Mar/Jun 19 (A)
289
Candy Apple and Sugar Plum
186
601
Dec 13 (A)
290
Lithograph Ltd
188
603
Jun 06 (A)
291
Alisa
190
605
Sep 16 (A)
292
The Whitlock Sisters
191
607
Jun 12 (A)
293
Knight Ltd
193
609
Jun 13 (A)
294
Ardent Ltd
195
612
Dec 16 (A)
SECTION C CONSTRUCTED RESPONSE QUESTIONS
295
Garfield
197
614
Mar/Jun 16 (A)
296
Victor Style
198
616
(A)
297
Denzil Dyer
199
618
Jun 07 (A)
298
Silverstone Ltd
200
619
Dec 12 (A)
299
Tardy plc
200
620
Dec 14
300
Smart Ltd
201
623
Sept/Dec 15
301
Zia
202
625
Jun 15
KA PLAN PUBLISHING
P.13
ANALYSIS OF PAST EXAMS
The table below summarises the key topics that have been tested in recent exams.
Key:
Q
The question references are to the number of the question in this edition of the exam kit.

Refers to questions which have not been included in the kit due to similarity to other recent
questions.
*
Refers to topics that were included in the question when originally set, but with the
adaptation of the question to the new style exam, this topic element has been removed
from this question in the exam kit.
Mar/Jun
2016
Principles of taxation/Ethics
Extra statutory concession
Direct tax
Income tax
Exempt income
Basic income tax
computation
Savings income
Dividend income
Reduction of personal
allowance
Property income
KA PLAN PUBLISHING
Dec
2016
Mar/Jun Sep/Dec Mar/Jun Sep/Dec Mar/Jun
2017
2017
2018
2018
2019
Q75
Q71
Q95
Q104

Q97
Q96
Q16
Q113
Q94
Q114
Q99

Q95
Furnished holiday lettings
ISAs
Residence
Qualifying interest
Employed individual
Employed vs. self‐employed
Salary and bonus
Exempt benefits
Car and fuel benefit
Living accommodation
Payroll giving
Beneficial loan
Use/gift of assets
Mileage allowance
Professional subscriptions
Removal expenses
Sep
2016
Q96
Q20
Q13
Q99
Q127
Q10
Q114
Q97
Q114
Q114
Q97
Q97
Q94
Q99
Q104
Q95
Q95
Q116
Q99
Q92
Q92
Q95
Q30
Q116
Q116
Q94
Q125
Q93
Q125
Q93
Q113
Q125
Q93
Q113
Q113
Q93
Q113
Q113
Q93
Q92
Q92
Q99
Q99
Q97
Q97
Q97
Q97
Q93
Q93
Q93
Q113
Q92
P.15
T X– U K: TAXA TION ( FA2019 )
Mar/Jun
2016
Self‐employed individual
Adjustment to profits
Capital allowances
Basis of assessment rules
Partnerships – allocation
Tax planning
Q95
Q95
Pensions
Pension income
Occupational pension
Personal pension
contributions
Annual allowance
Q95
Q95
Capital gains
Basic CGT computation
Exempt assets
Part disposal
Shares
Wasting asset
Insurance for destroyed
assets
Husband and wife
P.16
Mar/Jun Sep/Dec Mar/Jun Sep/Dec Mar/Jun
2017
2017
2018
2018
2019
Q116
Q116
Q114
Q114
Q93
Q110
Q104
Q116
Q64
Q116
Q64
Q99
Q97
Q127
Q127
Q107
Q99
Q97
Q116
Q116
Q97
Q114

Q96
Q94
Q92
Q104
Q104
Q95
Q174
Q57
Q61
Q171
Q169
Q174
Q171
Q157
Q168
Q140
Q169
Q169
Q174
Q134
Capital losses
Planning
Reliefs
Entrepreneurs’ relief
Principal private residence
relief
Gift relief
Rollover relief
Dec
2016
Q114
Income tax losses
Relief against income
Opening year loss relief
National Insurance
contributions
Class 1
Class 1A
Class 2
Class 4
Sep
2016
Q168
Q169
Q107
Q169
Q107
Q168
Q169
Q149
Q174
Q157
Q171
Q110
KA PLAN PUBLISHING
ANA L YS IS OF PA S T EXAMS
Mar/Jun
2016
Self‐assessment – individual
Payments on account
Compliance checks
Interest and penalties
Record retention
Sep
2016
Dec
2016
Q85
Mar/Jun Sep/Dec Mar/Jun Sep/Dec Mar/Jun
2017
2017
2018
2018
2019
Q110
Q93
Q93
Q87
Q79
Inheritance tax
PETs
Q209
CLTs
Q209
Exemptions
Diminution in value
Estate computation
After tax inheritance
Reduction of tax
Due dates
Transfer of nil rate band
Q209
Q209
Q182
Q184
Q184
Q200
Q203
Q200
Q204
Q203
Q203
Q193
Q204
Q204
Q204
Q203
Q199
Q200
Q200
Q107
Q200
Q107
Residence nil rate band
Corporation tax
Residence
Definition of accounting
periods
Adjustment to profits
Capital allowances
Lease premiums
Basic TTP computation
Q260
Q263
Q263
Property income
Q214
Q249
Q249
Q249
Q249
Interest income
Chargeable gains
Long period of account
Qualifying donations
KA PLAN PUBLISHING
Q260
Q252
Q259
Q251
Q260
Q260
Q252
Q252
Q252
Q259
Q251
Q251
Q251
Q221
Q260
Q251
Q250
Q250
Q264
Q250
Q25
2
Q259
Q251
Q264
Q250
Q249
Q25
2
Q259
Q251
Q264
Q250
Q264
Q250
Q264
Q250
Q260
Q263
Q96
Q259
Q259
Q264
Q171
Q249
Corporation tax losses
Capital losses
Trading losses
Property losses
Q264
Q264
Q222
Q260
Q260
Q25
2
Q259
Q251
Q25
2
P.17
T X– U K: TAXA TION ( FA2019 )
Mar/Jun
2016
Groups
Group relief
Capital gains group
Group structure planning
Sep
2016
P.18
Mar/Jun Sep/Dec Mar/Jun Sep/Dec Mar/Jun
2017
2017
2018
2018
2019
Q263
Q259
Q264
Q250
Q231
Self‐assessment –
companies
Quarterly instalments
Compliance check
Value added tax
Registration
VAT return computation
Tax point
Due dates
VAT invoices
Default surcharge
Errors in a VAT return
Pre‐registration input VAT
Annual accounting scheme
Cash accounting scheme
Input VAT recovery
Dec
2016
Q218
Q212
Q291
Q294
Q294
Q291
Q291
Q294
Q295
Q252
Q288
Q110
Q288
Q294
Q288
Q288
Q295
Q295
Q283
Q277
Q294
Q28
8
KA PLAN PUBLISHING
EXAM TECHNIQUE
GENERAL COMMENTS

We recommend that you always read the questions and examination requirements
carefully.

Divide the time you spend on questions in proportion to the marks on offer:

–
one suggestion for this examination is to allocate 1.8 minutes to each mark available
(180 minutes/100 marks), so a 10 mark question should be completed in approximately
18 minutes.
–
within that, try to allow time at the start to read the question and plan your answer
(see P.24 below) and at the end of each question to review your answer and address
any obvious issues.
If you get completely stuck with a question:
–

flag the question in the CBE software and return to it later.
Spend the last five minutes of the examination:
–
reading through your answers, and
–
making any additions or corrections.
SECTION A OBJECTIVE TEST QUESTIONS

Decide whether you want to attempt these at the start of the examination or at the end.

Stick to the timing principle of 1.8 minutes per mark. This means that the 15 OT questions
in section A (30 marks) should take 54 minutes.

No credit for workings will be given in these questions; the answers will either be correct
(2 marks) or incorrect (0 marks).

Work steadily. Rushing leads to careless mistakes and questions are designed to include
answers that result from careless mistakes.

If you don’t know the answer, eliminate those options you know are incorrect and see if the
answer becomes more obvious.

Remember that there is no negative marking for an incorrect answer. After you have
eliminated the options that you know to be wrong, if you are still unsure, guess.
SECTION B OT CASE QUESTIONS

There is likely to be a significant amount of information to read through for each case. You
should begin by reading the OT questions that relate to the case, so that when you read
through the information for the first time, you know what it is that you are required to do.

Each OT question is worth two marks. Therefore you have 18 minutes (1.8 minutes per
mark) to answer the five OT questions relating to each case. It is likely that all of the cases
will take the same length of time to answer, although some of the OT questions within a
case may be quicker than other OT questions within that same case.
KA PLAN PUBLISHING
P.19
T X– U K: TAXA TION ( FA2019 )

Once you have read through the information, you should first answer any of the OT
questions that do not require workings and can be quickly answered. You should then
attempt the OT questions that require workings utilising the remaining time for that case.

All of the tips for section A are equally applicable to each section B question.
SECTION C CONSTRUCTED RESPONSE (LONG) QUESTIONS

The constructed response questions in section C will require a written response rather than
being OT questions. Therefore, different techniques need to be used to score well.

Unless you know exactly how to answer the question, spend some time planning your
answer. Stick to the question and tailor your answer to what you are asked. Pay particular
attention to the verbs in the question e.g. 'Calculate', 'State', 'Explain'.

If you do not understand what a question is asking, state your assumptions. Even if you do
not answer in precisely the way the examining team hoped, you should be given some
credit if your assumptions are reasonable.

You should do everything you can to make things easy for the marker. Your answer should:
–
have a clear structure
–
be concise.
It is better to write a little about a lot of different points than a great deal about one or two
points.


Section C Computations:
–
It is essential to include all your workings in your answers. Many computational
questions require the use of a standard format e.g. income tax computations,
corporation tax computations and capital gains.
–
Be sure you know these formats thoroughly before the examination and use the
layouts that you see in the answers given in this book and in model answers.
–
Adopt a logical approach and cross reference workings to the main computation to
enable the marker to find them easily. Do not leave a large gap between your answer
and the workings.
–
You will be presented with a blank spreadsheet. A number of standard spreadsheet
functions are available via the menu and tool bar for you to use when responding to
the question. It is important to practise answering questions using the CBE software
and to familiarise yourself with the CBE functionality, particularly the spreadsheet
functions.
Section C Reports, memos and other documents:
–
P.20
Some questions ask you to present your answer in the form of a report, a memo, a
letter or other document.
KA PLAN PUBLISHING
EXAM TEC HN I QUE
ADDITIONAL TIPS

Do not attempt a CBE until you have completed all study material relating to it.

On the ACCA website there is a CBE demonstration. It is ESSENTIAL that you attempt this
before your real CBE. You will become familiar with how to move around the CBE screens
and the way that questions are formatted, increasing your confidence and speed in the
actual examination.

There is an additional constructed response (CR) workspace on the ACCA website which you
can use to practice questions from this exam kit in a CBE environment.

Be sure you understand how to use the software before you start the examination. If in
doubt, ask the assessment centre staff to explain it to you.

Questions are displayed on the screen and answers are entered using keyboard and mouse.

In addition to multiple choice type questions, CBEs will also contain other types of
questions. You need to be sure you know how to answer questions of these types before
you sit the examination, through practice. The types of objective test questions you could
see in your CBE are as follows:
Example exam kit
question
Question type
Description
Multiple choice
Select one correct answer from a choice
of four
2
Multiple response
Select a given number of correct
answers
31
Fill in the blank
Input a numerical answer
3
Drag and drop
Match chosen answer to chosen areas
of the screen
145
Drop down list
Select one correct answer from a drop
down list
156
Hot area
Select one or more areas in an image as
a correct answer (e.g. true or false)
1
KA PLAN PUBLISHING
P.21
EXAM SPECIFIC INFORMATION
THE EXAM
FORMAT OF THE EXAM
The exam will be in THREE sections, and will be predominantly computational.
Section A will consist of 15 objective test questions, each worth 2 marks.
Section B will consist of three 10 mark questions which each comprise five objective test questions
of 2 marks each.
Section C will consist of one 10 mark question and two 15 mark questions.
All questions are compulsory.
Section A:
Section B:
15 objective test questions of 2 marks each
Three 10 mark questions covering any area of the syllabus
Section C:
One 10 mark question covering any area of the syllabus
Two 15 mark questions, one focusing on income tax and
one on corporation tax
Number of marks
30
30
Total
10
30
–––
100
–––
The CBE will be 3 hours long and students will have up to 10 minutes to familiarise themselves
with the CBE system before starting the exam.
Note that:

Section A and section B questions can be drawn from any area of the syllabus.

The two 15 mark section C questions could include a small number of marks in respect of
other taxes.

There is no set order for the section C questions. In the specimen exam the 10 mark
question appeared before the 15 mark questions, but the examining team could change the
order.
PASS MARK
The pass mark for all ACCA Qualification examinations is 50%.
KAPLAN PUBLISHING
P . 23
T X– U K: TAXA TION ( FA2019 )
SUGGESTED APPROACH TO THIS EXAM
Decide in advance whether you will attempt section A, B or C first so that you are not wasting
time on this decision in the real examination.

This is a personal choice and you have time on the revision phase to try out different
approaches, for example, if you sit mock examinations.

A common approach is to tackle the short section A questions first, so they are out of the
way, then section B and finally the longer constructed response questions in section C.

Others may prefer to tackle the longer section B and C questions first, as they will take
longer than the individual questions in section A.
You should complete at least one mock examination under examination conditions to try out your
chosen approach in advance.
Whatever your approach though, you must make sure that you leave enough time to attempt all
questions fully and be very strict with yourself in timing each question.
READING AND PLANNING
Reading and planning are crucial elements of your examination technique and it is important that
you allocate time in the examination to this. Spend time reading the questions carefully,
particularly in sections B and C, where questions will be based on longer scenarios than the 2
mark OTs in section A.
Whatever happens, always keep your eye on the clock and do not over run on any part of any
question!
As all questions are compulsory, there are no decisions to be made about choice of questions,
other than in which order you would like to tackle them.
Therefore, in relation to TX we recommend that you take the following approach to planning your
answers:

Note down the amount of time you should spend on each part of each question.

Decide the order in which you think you will attempt each question in sections B and C:
A common approach is to tackle the question you think is the easiest and you are most
comfortable with first.
Others may prefer to tackle the longest questions first, or conversely leave them to the last.
It is usual however for students to tackle their least favourite topic and/or the most difficult
question in their opinion last.
Whatever your approach, you must make sure that you leave enough time to attempt all
questions fully and be very strict with yourself in timing each question.

For each section C question in turn, read the requirements and then the detail of the
question carefully.
Always read the requirement first as this enables you to focus on the detail of the
question with the specific task in mind.
For section C computational questions:
Note key numbers/information and key words in the question, scribble notes to yourself to
remember key points in your answer.
Jot down pro formas required if applicable.
P.24
KA PLAN PUBLISHING
EXAM S PEC IF IC INFORMATION
For section C written questions:
Take notice of the format required (e.g. letter, memo, notes) and identify the recipient of
the answer. You need to do this to judge the level of financial sophistication required in
your answer and whether the use of a formal reply or informal bullet points would be
satisfactory.
Plan your beginning, middle and end and the key areas to be addressed and your use of
titles and sub‐titles to enhance your answer.
For all section C questions:
Spot the easy marks to be gained in a question and parts which can be performed
independently of the rest of the question. For example, writing down due dates of payment
of tax, due dates for making elections, laying out basic pro formas correctly.
Make sure that you do these parts first when you tackle the question.

As mentioned in the ‘Exam Technique’ section earlier, you should decide in advance of the
real examination whether to attempt section A, B or C first.
Always keep your eye on the clock and do not over run on any part of any question!
DETAILED SYLLABUS
The detailed syllabus and study guide written by the ACCA can be found at:
www.accaglobal.com/en/student.html
KA PLAN PUBLISHING
P.25
TAX RATES AND ALLOWANCES
Tax rates and allowances will be produced in the examination for TX for the June 2020 to March
2021 sittings which will contain the following information.
SUPPLEMENTARY INSTRUCTIONS
1
Calculations and workings need only be made to the nearest £.
2
All apportionments should be made to the nearest month.
3
All workings should be shown in Section C.
INCOME TAX
Basic rate
Higher rate
Additional rate
Savings income nil rate band
£1 – £37,500
£37,501 – £150,000
£150,001 and over
– Basic rate taxpayers
– Higher rate taxpayers
Dividend nil rate band
Normal
rates
20%
40%
45%
Dividend
rates
7.5%
32.5%
38.1%
£1,000
£500
£2,000
A starting rate of 0% applies to savings income where it falls within the first £5,000 of taxable
income.
Personal allowance
Personal allowance
Transferable amount
Income limit
£12,500
£1,250
£100,000
Where adjusted net income is £125,000 or more, the personal allowance is reduced to zero
Residence status
Days in UK
Less than 16
16 to 45
46 to 90
91 to 120
121 to 182
183 or more
KA PLAN PUBLISHING
Previously resident
Automatically not resident
Resident if 4 UK ties (or more)
Resident if 3 UK ties (or more)
Resident if 2 UK ties (or more)
Resident if 1 UK tie (or more)
Automatically resident
Not previously resident
Automatically not resident
Automatically not resident
Resident if 4 UK ties
Resident if 3 UK ties (or more)
Resident if 2 UK ties (or more)
Automatically resident
P.39
T X– U K: TAXA TION ( FA2019 )
Child benefit income tax charge
Where income is between £50,000 and £60,000, the charge is 1% of the amount of child benefit
received for every £100 of income over £50,000.
Car benefit percentage
The relevant base level of CO2 emissions is 95 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:
50 grams per kilometre or less
51 grams to 75 grams per kilometre
76 grams to 94 grams per kilometre
95 grams per kilometre
16%
19%
22%
23%
Car fuel benefit
The base figure for calculating the car fuel benefit is £24,100.
Company van benefits
The company van benefit scale charge is £3,430, and the van fuel benefit is £655.
Individual Savings Accounts (ISAs)
The overall investment limit is £20,000.
Property income
Basic rate restriction applies to 75% of finance costs relating to residential properties.
Pension scheme limits
£40,000
£10,000
£150,000
Annual allowance
Minimum allowance
Income limit
The maximum contribution that can qualify for tax relief without any earnings is £3,600.
Approved mileage allowance: cars
Up to 10,000 miles
Over 10,000 miles
P.40
45p
25p
KAPLA N PUB L ISH IN G
TAX RA TES A N D A LLOWANCES
Capital allowances: rates of allowance
Plant and machinery
Main pool
Special rate pool
18%
6%
Motor cars
New cars with CO2 emissions up to 50 grams per kilometre
CO2 emissions between 51 and 110 grams per kilometre
CO2 emissions over 110 grams per kilometre
Annual investment allowance
Rate of allowance
Expenditure limit
100%
18%
6%
100%
£1,000,000
Cash basis
£150,000
Revenue limit
Cap on income tax reliefs
Unless otherwise restricted, reliefs are capped at the higher of £50,000 or 25% of income.
CORPORATION TAX
Rate of tax – Financial year 2019
– Financial year 2018
– Financial year 2017
Profit threshold
19%
19%
19%
£1,500,000
VALUE ADDED TAX
Standard rate
Registration limit
Deregistration limit
KA PLAN PUBLISHING
20%
£85,000
£83,000
P . 41
T X– U K: TAXA TION ( FA2019 )
INHERITANCE TAX: nil rate bands and tax rates
Nil rate band
Residence nil rate band
Rate of tax on excess
–
–
£325,000
£150,000
20%
40%
Lifetime rate
Death rate
Inheritance tax: taper relief
Percentage
reduction
20%
40%
60%
80%
Years before death
More than 3 but less than 4 years
More than 4 but less than 5 years
More than 5 but less than 6 years
More than 6 but less than 7 years
CAPITAL GAINS TAX
Lower rate
Higher rate
Annual exempt amount
Entrepreneurs’ relief –
–
P.42
Normal
rates
10%
20%
Lifetime limit
Rate of tax
Residential
property
18%
28%
£12,000
£10,000,000
10%
KAPLA N PUB L ISH IN G
TAX RA TES A N D A LLOWANCES
NATIONAL INSURANCE CONTRIBUTIONS
Class 1
Employee
£1 – £8,632 per year
£8,633 – £50,000 per year
£50,001 and above per year
Class 1
Employer
£1 – £8,632 per year
£8,633 and above per year
Employment allowance
Class 4
Nil
13.8%
£3,000
13.8%
Class 1A
Class 2
Nil
12%
2%
£3.00 per week
Small profits threshold
£1 – £8,632 per year
£8,633 – £50,000 per year
£50,001 and above per year
£6,365
Nil
9%
2%
RATES OF INTEREST (assumed)
2.50%
3.25%
0.50%
Official rate of interest
Rate of interest on underpaid tax
Rate of interest on overpaid tax
STANDARD PENALTIES FOR ERRORS
Taxpayer behaviour
Deliberate and concealed
Deliberate but not concealed
Careless
KA PLAN PUBLISHING
Maximum
penalty
100%
70%
30%
Minimum penalty
– unprompted
disclosure
30%
20%
0%
Minimum penalty
– prompted
disclosure
50%
35%
15%
P . 43
TIME LIMITS AND ELECTION DATES
Income tax
Election/claim
Time limit
For 2019/20
Agree the amount of trading
losses to carry forward
4 years from the end of the tax year in
which the loss arose
5 April 2024
Current and prior year set‐off
of trading losses against total
income (and chargeable gains)
12 months from 31 January following the
end of the tax year in which the loss arose
31 January 2022
Three year carry back of
trading losses in the opening
years
12 months from 31 January following the
end of the tax year in which the loss arose
31 January 2022
Three year carry back of
terminal trading losses in the
closing years
4 years from the end of the last tax year of
trading
5 April 2024
17 days after the end of each tax month
under PAYE system
22nd of each
month
National Insurance Contributions
Class 1 employee and
employer’s
– pay days
(14 days if not paid electronically)
Class 1 A NIC – pay day
22 July following end of tax year
22 July 2020
(19 July if not paid electronically)
Class 2 NICs – pay day
Paid under self‐assessment with balancing
payment
31 January 2021
Class 4 NICs – pay days
Paid under self‐assessment with income tax
See self‐
assessment
Replacement of business asset
relief for individuals
4 years from the end of the tax year:
5 April 2024
–
in which the disposal occurred or
(Rollover relief)
–
the replacement asset was acquired
for 2018/19 sale
and 2019/20
Capital gains tax
whichever is later
acquisition
Holdover relief of gain on the
gift of a business asset
(Gift relief)
4 years from the end of the tax year in
which the disposal occurred
5 April 2024
Entrepreneurs’ relief
12 months from 31 January following the
end of the tax year in which the disposal
occurred
31 January 2022
Determination of principal
private residence
2 years from the acquisition of the second
property
KA PLAN PUBLISHING
P.45
T X– U K: TAXA TION ( FA2019 )
Self‐assessment – individuals
Election/claim
Time limit
Pay days for income tax and
class 4 NIC
1st instalment:
For 2019/20
31 January in the tax year
31 January 2020
2nd instalment:
31 July following the end of tax year
31 July 2020
Balancing payment:
Pay day for CGT and class 2 NIC
31 January following the end of tax year
31 January 2021
31 January following the end of tax year
31 January 2021
Filing dates
If notice to file issued by
31 October following end of tax
year
Paper return:
31 October following end of tax year
31 October 2020
Electronic return:
31 January 2021
31 January following end of tax year
If notice to file issued after
31 October following end of tax
year
3 months from the date of issue of the
notice to file
Retention of records
Business records
5 years from 31 January following end of
the tax year
31 January 2026
Personal records
12 months from 31 January following end
of the tax year
31 January 2022
HMRC right of repair
9 months from date the return was filed
Taxpayer’s right to amend a
return
12 months from 31 January following end
of the tax year
31 January 2022
Taxpayer’s claim for
overpayment relief
4 years from the end of the tax year
5 April 2024
HMRC can open an enquiry
12 months from submission of the return
HMRC can raise a discovery
assessment
–
No careless or deliberate
behaviour
4 years from the end of the tax year
5 April 2024
–
Tax lost due to careless
behaviour
6 years from the end of the tax year
5 April 2026
–
Tax lost due to deliberate
behaviour
20 years from the end of the tax year
5 April 2040
Taxpayer’s right of appeal
against an assessment
P.46
30 days from the assessment
–
appeal in writing
KA PLAN PUBLISHING
TIME LI MI TS A ND E LE CT ION S DA TES
Corporation tax
Election/claim
Time limit
Replacement of business asset relief for
companies (Rollover relief)
4 years from the end of the chargeable accounting
period:
–
in which the disposal occurred or
–
the replacement asset was acquired
whichever is later
Offset trading losses brought forward
against total profits (income and gains)
2 years from the end of the chargeable accounting
period in which the loss is relieved
Current year set‐off of trading losses against
total profits (income and gains), and
2 years from the end of the chargeable accounting
period in which the loss arose
12 month carry back of trading losses
against total profits (income and gains)
Surrender of trading losses to other group
companies (Group relief)
2 years after the claimant company’s chargeable
accounting period
Election for transfer of capital gain or loss to
another company within the gains group
2 years from the end of the chargeable accounting
period in which the disposal occurred by the
company actually making the disposal
Self‐assessment – companies
Election/claim
Time limit
Pay day for small and medium companies
9 months and one day after the end of the
chargeable accounting period
Pay day for large companies
Instalments due on 14th day of:
–
Filing dates
Seventh, tenth, thirteenth, and sixteenth
month after the start of the chargeable
accounting period
Later of:
–
12 months from the end of the chargeable
accounting period
–
3 months from the issue of a notice to
deliver a corporation tax return
Company’s claim for overpayment relief
4 years from the end of the chargeable accounting
period
HMRC can open an enquiry
12 months from the actual submission of the
return
Retention of records
6 years from the end of the chargeable accounting
period
KA PLAN PUBLISHING
P.47
T X– U K: TAXA TION ( FA2019 )
Value added tax
Election/claim
Time limit
Compulsory registration
Historic test:
–
Notify HMRC
30 days from end of the month in which the
threshold was exceeded
–
Charge VAT
First day of second month after the month when
taxable supplies exceeded the threshold
Future test:
–
Notify HMRC
30 days from the date it is anticipated that the
threshold will be exceeded
–
Charge VAT
The date it is anticipated that the threshold will
be exceeded (i.e. the beginning of the 30 day
period)
Compulsory deregistration
Notify HMRC 30 days from cessation
Filing of VAT return and payment of VAT
One month and seven days after the end of the
return period
P.48
KA PLAN PUBLISHING
Section 1
PRACTICE INCOME TAX AND
NATIONAL INSURANCE QUESTIONS
PRACTICE SECTION A OBJECTIVE TEST QUESTIONS
INCOME TAX BASICS AND EMPLOYMENT INCOME
1
Said has made a number of investments during the tax year.
Tick the appropriate box to show which of the following investments will generate
taxable income and which will generate exempt income.
Taxable
Exempt
£400 in shares in the company he works for
£1,000 in an Individual Savings Account
£800 in a NS&I investment account
£500 purchasing a NS&I certificate
2
Specimen exam June 2015 OT question
Martina is self‐employed, and for the year ended 5 April 2020 her trading profit was
£111,900. During the tax year 2019/20, Martina made a gift aid donation of £800 (gross) to
a national charity.
What amount of personal allowance will Martina be entitled to for the tax year 2019/20?
A
£12,500
B
£6,950
C
£6,550
D
£600
KA PLAN PUBLISHING
1
T X– U K: TAXATION ( FA2019 )
3
Fiona is a sole trader. During the tax year 2019/20 she had taxable trading income of
£106,800 and received dividend income of £1,500. Fiona made a gift aid donation of £2,000
(gross) during the tax year 2019/20.
What amount of personal allowance is Fiona entitled to for the tax year 2019/20?
£
4
Genna and Wayne are a married couple. In the tax year 2019/20 Genna had a salary of
£5,000 and Wayne had property income of £40,650. They have made an election to transfer
the fixed amount of personal allowance from Genna to Wayne.
What is Wayne’s income tax liability for the tax year 2019/20?
5
A
£4,380
B
£4,130
C
£5,380
D
£5,880
Tick the appropriate box to show which of the following items of expenditure are
deductible in the calculation of an individual’s taxable income.
Deductible
Not deductible
A contribution into a personal pension
scheme
A charitable gift aid donation
A contribution into an employer’s HM
Revenue and Customs registered
occupational pension scheme
A charitable donation made under the
payroll deduction scheme
6
June 2015 OT question
For the tax year 2019/20, Chi has a salary of £53,000. She received child benefit of £1,789
during this tax year.
What is Chi’s child benefit income tax charge for the tax year 2019/20?
2
A
£1,789
B
£0
C
£1,252
D
£536
KA PLAN P UB L I S H I N GH
PRACTICE IN COME TAX A ND N A T IO NA L IN SURAN CE QUESTIONS : S E CTI O N 1
7
Ifram has been employed for many years and has also recently become a partner in a
partnership. He is in the process of completing his tax return and has asked your advice
regarding the interest payments he has made.
Identify, by ticking the appropriate box, whether his interest payments represent
qualifying interest and are deductible from his total income or are not qualifying.
Qualifying interest
Not qualifying
Interest paid on a loan he incurred to
purchase a laptop for use in his employment
Interest paid on the mortgage for his
principal private residence
Interest paid on an amount he borrowed to
finance the acquisition of 2,000 shares in a
quoted company
Interest paid on a loan he took to invest
capital in a partnership in order to become a
partner
8
June 2015 OT question
Samuel is planning to leave the UK to live overseas, having always previously been resident
in the UK. He will not automatically be treated as either resident in the UK or not resident in
the UK. Samuel has several ties with the UK and will need to visit the UK for 60 days each
tax year. However, he wants to be not resident after he leaves the UK.
For the first two tax years after leaving the UK, what is the maximum number of ties which
Samuel could keep with the UK without being treated as resident in the UK?
9
A
One
B
Four
C
Two
D
Three
Bao spent 37 days travelling in the UK during the tax year 2019/20. He has never been
resident in the UK prior to the tax year 2019/20.
Minh arrived in the UK from Vietnam on 10 November 2019 to work full time in the UK.
Minh did not work full‐time in Vietnam before arriving in the UK.
Identify, by ticking the appropriate box, who is treated as UK resident in the tax year
2019/20.
Resident
Not resident
Bao
Min
KA PLAN PUBLISHING
3