TX (Mock -1 )

On 1 July 2019, Sameer made a cash gift of £2,500 to his sister.

On 1 May 2020, he made a cash gift of £2,000 to a friend.

On 1 June 2020, he made a cash gift of £50,000 to a trust.

Sameer has not made any other lifetime gifts.

In respect of Sameer's cash gift of £50,000 to the trust, what is the lifetime transfer of value for inheritance tax purposes after taking account of all available exemptions?

• £48,500

• £44,000

• £46,000

• £46,500

On 31 March 2021, Angus sold a house, which he had bought on 31 March 2007.

Angus occupied the house as his main residence until 31 March 2012, when he left for employment abroad.

Angus returned to the UK on 1 April 2014 and lived in the house until 31 March 2015, when he bought a flat in a neighbouring town and made that his principal private residence.

What is Angus' total number of qualifying months of occupation for private residence relief on the sale of the house?

• 72 months

• 141 months

• 105 months

• 96 months

Abena has made the following gross contributions to her personal pension scheme over the past three tax years:

Tax year £

2017/18 - 42,000

2018/19 - 27,000

2019/20 - 28,000

Abena is entitled to an annual allowance of £40,000 in all tax years from 2017/18 to 2020/21.

What is the maximum gross contribution which Abena can make to her personal pension scheme for the tax year 2020/21 without giving rise to an annual allowance charge?

• £63,000

• £40,000

• £65,000

• £35,000

Triangle Ltd is registered for value added tax (VAT) and uses the annual accounting scheme. For the year ended 31 December 2020, the net VAT payable by Triangle Ltd was £73,500.

For the year ended 31 December 2019, the net VAT payable by Triangle Ltd was £47,700.

Indicate, by clicking on the relevant boxes in the table below, the number and amount of the monthly payments on account of VAT which Triangle Ltd must make in respect of the year ended 31 December 2020 prior to submitting its VAT return for that year.

• NINE

  £4770

• NINE

  £7350

• TEN

  £4770

• TEN

  £7350

What is the amount of Lili Ltd's deductible pre-trading expenditure in respect of the year ended 31 December 2020?

• £15000

• £1000

• £14000

• £1400

Paloma has been trading for a number of years. Her tax adjusted trading profit for the year ended 31 May 2020 was £53,150 and for the year ended 31 May 2021 was £50,350.

What is the amount of class 4 national insurance contributions (NIC) payable by Paloma for the tax year 2020/21?

• £3,661

• £3,929

• £3,645

• £3,708

• TRUE, FALSE, TRUE, FALSE

• FALSE, TRUE, FALSE, FALSE

• TRUE, FALSE, TRUE, TRUE

• FALSE, TRUE, TRUE, FALSE

Which of the following statements concerning self-assessment tax returns for individuals is TRUE?

• Individuals with tax payable of less than £1,000 for a tax year are not required to file a tax return

• Individuals are only required to file a tax return for a tax year if they receive a notice to deliver from HM Revenue & Customs (HMRC).

• All individuals who submit a tax return on time are able to have their tax payable calculated by HMRC.

• The tax return for an individual covers income tax, class 1, class 2 and class 4 national insurance contributions and capital gains tax liabilities.

In certain circumstances, an individual is automatically not resident in the UK.

Indicate, by clicking on the relevant boxes in the table below, whether the following two individuals satisfy or do not satisfy the tests to be treated as automatically not resident in the UK for the tax year 2020/21.

Eric, who has never previously been resident in the UK. In the tax year 2020/21, he was in the UK for 40 days.

Fran, who was resident in the UK for the two tax years prior to the tax year 2020/21. In the tax year 2020/21, she was in the UK for 18 days.

• Satisfies & Dose not

• Dose not & Dose not

• Dose not & Satisfies

• Satisfies & Satisfies

Max is employed by Star Ltd. On 6 April 2019, Star Ltd provided Max with a camera for his personal use. The camera had a market value of £2,000 on 6 April 2019. On 6 April 2020, Star Ltd gave the camera to Max for free.

The camera had a market value of £1,400 on 6 April 2020.

What is Max's taxable benefit in respect of the camera for the tax year 2020/21?

• £1,000

• £1,400

• £2,000

• £1,600