Tax - Interim Mock - 50% - Chapter 1 to 12

1. Ann -

Ann is self-employed. Her taxable income for the tax gear 2022/23 was which was all income. Ann made contributions of 76000 (gross) into a scheme September 2022 and March 2023. This was the year that she had been a member of a pension scheme and she had an unused annual allowance of 20000 brought forward from 2021/22.

Basil -

Basil is employed. During the tax year 2022/23 Basil had taxable income of which was all employment income. Basil made contributions of 50,000 (gross) into a personal pension scheme during the tax year 2022/23. This was the first year that he had been a member of a pension scheme. In future, his employer may contribute to Basil's personal pension scheme.

Chloe -

Chloe lets out an unfurnished property. For the tax gear 2022/23, her taxable income was 16,630 which was all property business income. Chloe made contributions of 8,200 into a personal scheme during the tax 2022/23. This was the first year that she had been a member of a pension scheme. Chloe not have any interest payable on her buy-to-let property.

Q. Which TWO of the following statements relevant are correct?

• Individuals can always make gross contributions of 3600 in 2022/23 even if they do not have any relevant earnings in that tax year.

• Relevant earnings relate to both contributions to personal pension schemes and to occupational pension schemes.

• If an individual makes pension contributions less than relevant in a tax year, the excess can carried forward for three years and used to cover pension contributions.

• Relevant do not include income from furnished holiday lettings

1. Ann -

Ann is self-employed. Her taxable income for the tax gear 2022/23 was which was all income. Ann made contributions of 76000 (gross) into a scheme September 2022 and March 2023. This was the year that she had been a member of a pension scheme and she had an unused annual allowance of 20000 brought forward from 2021/22.

Basil -

Basil is employed. During the tax year 2022/23 Basil had taxable income of which was all employment income. Basil made contributions of 50,000 (gross) into a personal pension scheme during the tax year 2022/23. This was the first year that he had been a member of a pension scheme. In future, his employer may contribute to Basil's personal pension scheme.

Chloe -

Chloe lets out an unfurnished property. For the tax gear 2022/23, her taxable income was 16,630 which was all property business income. Chloe made contributions of 8,200 into a personal scheme during the tax 2022/23. This was the first year that she had been a member of a pension scheme. Chloe not have any interest payable on her buy-to-let property.

Q. What is Ann's income tax liability for the tax year 2022/23?

1. Ann -

Ann is self-employed. Her taxable income for the tax gear 2022/23 was which was all income. Ann made contributions of 76000 (gross) into a scheme September 2022 and March 2023. This was the year that she had been a member of a pension scheme and she had an unused annual allowance of 20000 brought forward from 2021/22.

Basil -

Basil is employed. During the tax year 2022/23 Basil had taxable income of which was all employment income. Basil made contributions of 50,000 (gross) into a personal pension scheme during the tax year 2022/23. This was the first year that he had been a member of a pension scheme. In future, his employer may contribute to Basil's personal pension scheme.

Chloe -

Chloe lets out an unfurnished property. For the tax gear 2022/23, her taxable income was 16,630 which was all property business income. Chloe made contributions of 8,200 into a personal scheme during the tax 2022/23. This was the first year that she had been a member of a pension scheme. Chloe not have any interest payable on her buy-to-let property.

Q. What is Basil's annual allowance charge for the tax year 2022/23?

1. Ann -

Ann is self-employed. Her taxable income for the tax gear 2022/23 was which was all income. Ann made contributions of 76000 (gross) into a scheme September 2022 and March 2023. This was the year that she had been a member of a pension scheme and she had an unused annual allowance of 20000 brought forward from 2021/22.

Basil -

Basil is employed. During the tax year 2022/23 Basil had taxable income of which was all employment income. Basil made contributions of 50,000 (gross) into a personal pension scheme during the tax year 2022/23. This was the first year that he had been a member of a pension scheme. In future, his employer may contribute to Basil's personal pension scheme.

Chloe -

Chloe lets out an unfurnished property. For the tax gear 2022/23, her taxable income was 16,630 which was all property business income. Chloe made contributions of 8,200 into a personal scheme during the tax 2022/23. This was the first year that she had been a member of a pension scheme. Chloe not have any interest payable on her buy-to-let property.

Q. What is Chloe's tax relief on her pension contribution for the tax year 2022/23?

• 0

• 1640

• 900

• 720

Ae and Bee commenced in partnership on 1 July 2020 preparing accounts to 30 April. Cae joined as a partner on 1 July 2022. Profits were always shared equally. The partnership's trading profits since the commencement of trading have been as follows:

Period ended 30 April 2021 - 54000

Year ended 30 April 2022 - 66000

Year ended 30 April 2023 - 87000

Eu ceased trading on 30 September 2024, having been self-employed since 1 July 2013.

(1) Eu's trading profits for the final three periods of trading were as follows:

These figures are before taking account of capital allowances.

Year ended 30 June 2023 - 62775

Year ended June 2024 - 57600

Three-month period ended 30 September 2024 - 14400

(2) Eu's capital allowances in the year to 30 June 2023 were 1,575 and in the year to 30 June 2024 were 1,292.

(3) The tax written down value of the capital allowances main at 1 July 2024 was 5,883. On 15 September 2024, Eu purchased office furniture for 2400. All of the items included in the main pool were sold for 5,175 (all for less than cost) on 30 September 2024.

(4) Until the final period of trading Eu had always prepared accounts to 30 June.

(5) Her overlap profits for the period 1 July 2013 to 5 April 2014 were 9800.

Q. What is Ae's trading income assessment for the tax year 2021/22?

• 27000

• 24300

• 32500

• 33000

Ae and Bee commenced in partnership on 1 July 2020 preparing accounts to 30 April. Cae joined as a partner on 1 July 2022. Profits were always shared equally. The partnership's trading profits since the commencement of trading have been as follows:

Period ended 30 April 2021 - 54000

Year ended 30 April 2022 - 66000

Year ended 30 April 2023 - 87000

Eu ceased trading on 30 September 2024, having been self-employed since 1 July 2013.

(1) Eu's trading profits for the final three periods of trading were as follows:

These figures are before taking account of capital allowances.

Year ended 30 June 2023 - 62775

Year ended June 2024 - 57600

Three-month period ended 30 September 2024 - 14400

(2) Eu's capital allowances in the year to 30 June 2023 were 1,575 and in the year to 30 June 2024 were 1,292.

(3) The tax written down value of the capital allowances main at 1 July 2024 was 5,883. On 15 September 2024, Eu purchased office furniture for 2400. All of the items included in the main pool were sold for 5,175 (all for less than cost) on 30 September 2024.

(4) Until the final period of trading Eu had always prepared accounts to 30 June.

(5) Her overlap profits for the period 1 July 2013 to 5 April 2014 were 9800.

Q. What is Cae's trading income assessment for the tax year 2022/23?

• 26583

• 24167

• 29000

• 21750

Ae and Bee commenced in partnership on 1 July 2020 preparing accounts to 30 April. Cae joined as a partner on 1 July 2022. Profits were always shared equally. The partnership's trading profits since the commencement of trading have been as follows:

Period ended 30 April 2021 - 54000

Year ended 30 April 2022 - 66000

Year ended 30 April 2023 - 87000

Eu ceased trading on 30 September 2024, having been self-employed since 1 July 2013.

(1) Eu's trading profits for the final three periods of trading were as follows:

These figures are before taking account of capital allowances.

Year ended 30 June 2023 - 62775

Year ended June 2024 - 57600

Three-month period ended 30 September 2024 - 14400

(2) Eu's capital allowances in the year to 30 June 2023 were 1,575 and in the year to 30 June 2024 were 1,292.

(3) The tax written down value of the capital allowances main at 1 July 2024 was 5,883. On 15 September 2024, Eu purchased office furniture for 2400. All of the items included in the main pool were sold for 5,175 (all for less than cost) on 30 September 2024.

(4) Until the final period of trading Eu had always prepared accounts to 30 June.

(5) Her overlap profits for the period 1 July 2013 to 5 April 2014 were 9800.

Q. What is Eu's trading income assessment for the tax year 2023/24?

• 56025

• 62775

• 57600

• 61200

Ae and Bee commenced in partnership on 1 July 2020 preparing accounts to 30 April. Cae joined as a partner on 1 July 2022. Profits were always shared equally. The partnership's trading profits since the commencement of trading have been as follows:

Period ended 30 April 2021 - 54000

Year ended 30 April 2022 - 66000

Year ended 30 April 2023 - 87000

Eu ceased trading on 30 September 2024, having been self-employed since 1 July 2013.

(1) Eu's trading profits for the final three periods of trading were as follows:

These figures are before taking account of capital allowances.

Year ended 30 June 2023 - 62775

Year ended June 2024 - 57600

Three-month period ended 30 September 2024 - 14400

(2) Eu's capital allowances in the year to 30 June 2023 were 1,575 and in the year to 30 June 2024 were 1,292.

(3) The tax written down value of the capital allowances main at 1 July 2024 was 5,883. On 15 September 2024, Eu purchased office furniture for 2400. All of the items included in the main pool were sold for 5,175 (all for less than cost) on 30 September 2024.

(4) Until the final period of trading Eu had always prepared accounts to 30 June.

(5) Her overlap profits for the period 1 July 2013 to 5 April 2014 were 9800.

Q. What is Eu's capital allowances for the three - month period ended 30 September 2024?

• 3108

• 1491

• 2775

• 559

Ae and Bee commenced in partnership on 1 July 2020 preparing accounts to 30 April. Cae joined as a partner on 1 July 2022. Profits were always shared equally. The partnership's trading profits since the commencement of trading have been as follows:

Period ended 30 April 2021 - 54000

Year ended 30 April 2022 - 66000

Year ended 30 April 2023 - 87000

Eu ceased trading on 30 September 2024, having been self-employed since 1 July 2013.

(1) Eu's trading profits for the final three periods of trading were as follows:

These figures are before taking account of capital allowances.

Year ended 30 June 2023 - 62775

Year ended June 2024 - 57600

Three-month period ended 30 September 2024 - 14400

(2) Eu's capital allowances in the year to 30 June 2023 were 1,575 and in the year to 30 June 2024 were 1,292.

(3) The tax written down value of the capital allowances main at 1 July 2024 was 5,883. On 15 September 2024, Eu purchased office furniture for 2400. All of the items included in the main pool were sold for 5,175 (all for less than cost) on 30 September 2024.

(4) Until the final period of trading Eu had always prepared accounts to 30 June.

(5) Her overlap profits for the period 1 July 2013 to 5 April 2014 were 9800.

Q. Assuming that the capital for the three-month period ended 30 September 2024 were 3000, what is Eu's income assessment for the tax year 2024/25?

• 1600

• 57908

• 62200

• 67708

Rosie -

Rosie has recently promoted to managing at Hornburg plc. During the tax 2022/23, Rosie will gross remuneration of 260,000 and she has dividend income of 500,000. She had income of 130,OOO in 2019/20, 2020/21 and 2021/22.

She has made the following gross pension contributions:

2020/21 - 26000

2021/22 - Nil

Rosie has been a member of a scheme since the tax year 2020/21 and Hornburg plc makes an employer's contribution of 10000 per year.

Sam -

In 2020, Sam invested 7,000 in a flexible cash ISA. In May 2022, he invested a further 6000 in that cash ISA. He withdrew 5,000 from the cash ISA in October 2022. Sam is now considering investing more cash into the cash ISA before 5 April 2023.

He also invested 4000 in premium bonds and government securities (gilts) in the tax 2022/23.

Q. What is the total pension scheme annual allowance that Rosie has available for the tax year 2022/23?

• 74000

• 38000

• 114000

• 78000