ACCA Paper:
Taxation (TX)
Section A: 15 MCQs x 2 Marks = 30 Marks
Section B: 15 MCQs x 2 Marks = 30 Marks
Section C: 2 Questions x 15 Marks = 30 Marks
1 Question x 10 Marks = 10 Marks
Total marks 100
Time Allowed: 3 Hours
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SECTION A: ALL 15 questions are compulsory and MUST be attempted
1.
2.
£__________
3.
Rat Ltd started trading on 1 December 2022 and prepared its first set of accounts to 31 March
2024.
What will Rat Ltd’s accounting periods be for the period of account to 31 March 2024?
A. 4 months to 31 March 2023, 12 months to 31 March 2024
B. 4 months to 5 April 2023, nearly 12 months to 31 March 2024
C. 12 months to 30 November 2023, 4 months to 31 March 2024
D. 16 months to 31 March 2024
4.
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£__________
5.
£__________
6.
7.
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8.
9.
£__________
10.
£__________
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11.
£__________
12.
£__________
13.
Which TWO of the following taxpayers are most likely to benefit financially from voluntary
registration for value added tax (VAT)?
A. A business which buys standard rated supplies and sells zero rated goods to members of
the public
B. A business which buys zero rated supplies and sells standard rated goods to members of
the public
C. A business which buys zero rated supplies and sells zero rated goods to members of the
public
D. A business which buys standard rated supplies and sells standard rated goods to other
VAT-registered businesses
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14.
£__________
15.
£__________
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SECTION B – ALL 15 questions are compulsory and MUST be attempted
Hyde plc group
The following scenario relates to Questions 16 to 20.
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16.
17.
£__________
18.
£__________
19.
Which TWO of the following statements about current period group relief claims between Hyde
plc and Greenwich plc are correct?
A. A claim for current period group relief will be ineffective unless Greenwich plc gives a
notice of consent.
B. If Hyde plc pays Greenwich plc an amount up to the amount of the loss surrendered, the
payment will be deducted from the current period group relief.
C. A claim for current period group relief between Greenwich plc and Hyde plc will be
available against the whole of the taxable total profits of Hyde plc for the year to 31
March 2025.
D. The claim for current period group relief would be made on Hyde plc’s corporation tax
return.
20.
£__________
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Anne
The following scenario relates to Questions 21 to 25.
21.
£__________
22.
£__________
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23.
£__________
24.
Which TWO of the following statements about the cash accounting scheme are correct?
A. Anne will be permitted to join the scheme if her expected taxable turnover for the next
12 months does not exceed £1,350,000.
B. Anne must pay her 90% of the previous year’s net VAT liability during the year by means
of nine monthly payments commencing at the end of the fourth month of the year.
C. Anne will be permitted to join the scheme if she is up to date with her VAT payments but
not necessarily up to date with her VAT returns.
D. If the value of Anne’s taxable supplies exceeds £1,600,000 in the 12 months to the end
of a VAT period, she must leave the scheme immediately.
25.
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Zim
The following scenario relates to Questions 26 to 30.
26.
£__________
27.
£__________
28.
What is the amount of input VAT which can be recovered on the expenditure on the mobile
phone calls in (4) and entertaining customers in (5)?
Mobile phone
A. £0
B. £0
C. £260
D. £260
Customers
£220
£40
£220
£40
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29.
30.
£__________
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SECTION C – ALL three questions are compulsory and MUST be attempted
31.
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32.
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Required:
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33.
Required:
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