SECTION A - ALL 15 questions are compulsory and MUST be attempted.

Each question is worth 2 marks.

1 During the tax year 2015/16, Simon had taxable trading profits of £48,000.
What amount of class 4 national insurance is payable in 2015/16?
A £3,604
B £4,192
C £3,318
D £3,175
2 Townsend ceased trading on 30 November 2014. The recent tax adjusted trading profits of his
business are as follows:
£
Year ended 30 April 2013 38,000
Year ended 30 April 2014 34,000
Period ended 30 November 2014 23,000
Townsend has unrelieved overlap profits of 7,000
What is Townsend’s taxable trading profits assessment for 2015/16?
A £50,000
B £23,000
C £57,000
D £16,000
3 Smith was provided with a Jaguar company car by his employer. The company paid £24,640 for the car
in January 2015, which included £3,450 of extras. The list price (without extras) is £22,870. The car is
diesel and emits 113 grams per kilometre of carbon dioxide. Smith pays his employer £20 per month
towards the running cost of the car. The employer only provides fuel for business use.
Compute the taxable benefit assessable on Smith in 2015/2016.
A £4,738
B £4,498
C £5,056
D £8,404
4 Daniel has recently submitted his tax return for 2014/15 which included income of over £45,000, but
he has deliberately omitted to include a capital gain of £21,000 realised on the disposal of an investment
property in June 2014. You have advised him that he must disclose the error and pay the additional
capital gains tax but he has refused.
What penalty (excluding late payment interest) will be incurred if Daniel deliberately omits the capital
gain from the self-assessment tax return form?
A £4,116
B £2,800
C £4,760
D £1,960
5 Lesley was provided with accommodation on 6 January 2016. The property was originally purchased
by her employer in 2008 for £325,000. Capital improvements were made to the property in June 2014 at
a total cost of £45,000. The market value of the property on 6 January 2016 was £435,000. Lesley pays
her employer £9,000 per annum in rent. The annual value of the property is £6,000. Assume an official
rate of interest of 3.25%.
What is the taxable benefit for the living accommodation in 2015/16?
A £10,950
B £1,647
C £2,175
D £2,541
6 James, a sole trader, wishes to register voluntarily for VAT.
Select which of the following options correctly identifies what James must do, in addition to
completing Form VAT1, in order to be so registered.
A Demonstrate to HMRC that he intends to make either zero or standard rated supplies or both
B Demonstrate to HMRC that he will make only zero rated supplies
C Demonstrate to HMRC that he will make only exempt supplies
D Demonstrate to HMRC that his sole intention for registering for VAT is to recover input VAT
7 Edith gifted 10,000 £1 ordinary shares in a quoted company Daylight plc on 15 March 2015 to her son.
On that date the shares were quoted on the Stock Exchange at £5.10–£5.18, with recorded bargains of
£5.00, £5.15 and £5.22. Edith originally acquired 15,000 shares in the company for £22,500 upon the
company’s incorporation in June 2003. Edith owns <1% of the shares in Daylight plc.
What is the chargeable gain (before deducting the annual exempt amount) on the gift of the shares in
2015/16?
A £7,028
B £25,100
C £36,100
D £10,108
8 Which of the following is an exempt asset for the purposes of capital gains?
A A yacht
B Equipment purchased for £7,000 and sold for £18,000
C A lease of 20 years
D A copyright with an unexpired life of 10 years
9 Acqua Ltd owns 60% of the shares in Clear Ltd. During the year ended 31 December 2016 Acqua Ltd
received dividends of £34,200 from Foggey Ltd, an unconnected company and dividends of £18,000
(net) from Clear Ltd.
Acqua Ltd has taxable total profits of £680,000.
What is the corporation tax liability of Acqua Ltd for the year ended 31 December 2016? Assume the
FA 2015 rates continue to apply in the future?
A £140,948
B £142,772
C £141,045
D £142,724
10 Oliver Orange has a salary of £160,000 each year and has invested the following amounts into a
personal pension scheme, £36,000 in each of the tax years 2013/14 to 2015/16. These are the net
amounts invested.
What is Oliver’s available annual allowance including any unused annual allowance in 2016/17?
A £40,000
B £55,000
C £45,000
D £50,000
11 Karly commenced trading on 1 January 2015, preparing her first set of accounts to 30 June 2015 and
she will prepare them to every following June. The adjusted trading profits are as follows:
Period to 30 June 2015 £10,000
Year ended 30 June 2016 £25,000
What are the taxable trading profits in 2015/16?
A £22,500
B £10,000
C £25,000
D £5,000
12 Which statement explains the group relationship that must exist in order for two or more
companies to form a group for capital gains purposes?
A All companies must be UK resident and the shareholding between the companies must be at least
75% directly or indirectly
B Companies form a capital gains group if at each level in the group structure there is at least a 75%
shareholding and the parent company (principal member) must have an effective interest of over 50% in
each group company indirectly
C Companies form a capital gains group provided the parent company owns directly or indirectly more
than 50% of the shareholding in the other group companies
D The shareholding between all companies (UK and overseas companies) must be at least 75% directly
or indirectly
13 Alice gave her nephew, Bob, 350 shares (a 20% holding) in Nicer Ltd on 1 April 2013. On 1 October
2015, Alice died and left the remaining 1,400 shares in Nicer Ltd to Bob.
Nicer Ltd – Value of an 1 April 2013 1 October 2015
ordinary share: As at
£ £
As part of a 100% holding 485 570
As part of a 80% holding 400 410
As part of a 20% holding 230 260

What is the value of the PET that Alice gave Bob on 1 April 2012 and the value of the remaining shares
included in her death estate, before deducting relevant exemptions?
A £80,500 and £574,000
B £80,500 and £798,000
C £288,750 and £574,000
D £288,750 and £798,000
14 Seaview Ltd has had the following results
Period Trading profit/(loss)
£
Year ended 31 December 2015 (110,000)
Five months to 31 December 2014 52,000
Year ended 31 July 2014 84,000
The company does not have any other income.
How much of Seaview Ltd’s trading loss for the year ended 31 December 2015 can be relieved against
its total profits for the year ended 31 July 2014?
A £33,833
B £49,000
C £84,000
D £58,000
15 Burco owns a home in the country of Canasta. Burco’s only income is in respect of investment
properties in Canasta. Burco’s ex-wife and their 12 year old daughter moved to the UK on 1 May 2014.
Burco first visited the UK in the tax year 2014/15 but was not UK resident in that year.
Burco did not own a house in the UK until he purchased one on 6 April 2015.
Burco expects to live in the UK house for 130 days in the tax year 2015/16.
Which of the following statements are correct in relation to Burco’s UK residence for 2015/16?
A Burco is UK resident as he spent more than 46 days in the UK.
B Burco is not UK resident as he spent more than 90 days outside of the UK.
C Burco has two ties with the UK and is therefore UK resident in 2015/16.
D Burco has one tie with the UK and is therefore not UK resident in 2015/16.
Section B – ALL 15 questions are compulsory and MUST be attempted
Each question is worth 2 marks.
The following scenario relates to questions 16–20.

16)

17)
18)

19)

20)
26)

27)
28)

29)

30)

Section C – ALL THREE questions are compulsory and MUST be attempted