4 Abe has been trading for many years. His adjusted trading profits for 2023/24 are £20,000.
Requirement
What is Abe's total national insurance contributions liability for 2023/24?
A £669
B £848
C £892
D £1,071
LO3i
5 During 2023/24 Ball Ltd pays Lena, one of its 25 employees, a salary of £39,067. The company provides her with a carthat
has a cash-equivalent benefit of £5,000 and supermarket vouchers which cost the company £500 pa.
Requirement
What are the Class 1 secondary contributions payable by Ball Ltd in 2023/24 in respect of Lena?
Ignore the employment allowance.
LO3i
6 During 2023/24 Ball Ltd pays Lena, one of its 25 employees, a salary of £39,067. The company provides her with a carthat
has a cash-equivalent benefit of £5,000 and supermarket vouchers which cost the company £500 pa.
Requirement
What are the Class 1 A contributions payable by Ball Ltd in 2023/24 in respect of Lena?
LO3i
7 Boris, aged 68, has a part-time job working for Jinx Ltd, earning £9,700 each year.
Identify whether the following statements are correct.
Requirements
Boris will have Class 1 primary contributions deducted from his wages.
A Correct
B Incorrect
Jinx Ltd must pay Class 1 secondary contributions in relation to Boris's earnings.
C Correct
D Incorrect
LO I d
8 Cobalt Ltd made a trading profit of £50,000 i n its year ended 31 March 2024.
The company employs only one employee, Bain, who is also a director o n an annual salary of £36,000.
Requirement
What is the total national insurance liability of the company for 2023/24?
LO3i
9 During 2023/24 Bat Ltd pays Laura a salary of £45,000 and provides her with benefits totalling £3,000.
Requirement
What are the national insurance contributions payable by Bat Ltd in 2023/24 i n respect of Laura?
Ignore the employment allowance.
A £6,624
B £3,892
C £5,368
D £4,954
LO3i
10 During 2023/24 Trim Ltd pays Belinda a monthly salary of £3,300. In addition, Trim Ltd paid Belinda a bonus of £4,000 in
December 2023. Belinda also attended the Trim Ltd Christmas party o n 1 8 December 2023 at a cost to Trim Ltd of £200
per head.
Requirement
What are the Class 1 Primary contributions d u e in respect of Belinda for December 2023?
LO3i
11 During 2023/24 Pirate Ltd pays Sue, aged 19, a salary of £52,000. The company provides her with a carthat has a cash-
equivalent benefit of £3,000.
Requirement
What are the Class 1 secondary contributions payable by Pirate Ltd in 2023/24 in respect of Sue?
Ignore the employment allowance.
LO3i
12 During 2023/24 Pirate Ltd pays Sue, aged 19, a salary of £52,000. The company provides her with a carthat has a cash-
equivalent benefit of £3,000.
Requirement
What are the Class 1 A contributions payable by Pirate Ltd in 2023/24 in respect of Sue?
LO3i
13 Hans is a sole trader employing only one worker, Olga, aged 42, on a n annual salary of £46,500.
Requirement
What are the Class 1 secondary contributions payable by Hans in 2023/24 in respect of Olga?
LO3i
1 4 During 2023/24 Rene Ltd pays Kamal, an apprentice aged 23, a salary of £20,000. He also receives shopping vouchers
with a cash value of £150 per month.
Requirement
What are the Class 1 secondary contributions payable by Rene Ltd in 2023/24 in respect of Kamal?
Ignore the employment allowance.
LO3i
15 During 2023/24 Rene Ltd pays Kamal, an apprentice aged 23, a salary of £20,000. He also receives shopping vouchers
with a cash value of £150 per month.
Requirement
What are the Class 1 primary contributions payable by Kamal for the month of May 2023?
LO3i
16 James has been trading for many years. His tax-adjusted trading profits for the last two years have been as follows.
Year ended 5 April 2023 41,000
Year ended 5 April 2024 58,350
Requirement
What are his Class 4 national insurance contributions for 2023/24?
A £4,686
B £4,120
C £3,555
D £2,559
LO3i
9 Capital gains tax - individuals
1 The Quack partnership has recently disposed of an office building. The office building was owned jointly by all the
partners. The office building was sold to a property developer.
Requirement
Who is liable to pay any capital gains tax due o n the disposal of the office building?
A Partnership
B Partners jointly
C Property developer
D Partners individually
LO 1e, 4a
2 Jamie entered into a contract with Annabelle to purchase a house. Contracts were exchanged o n 1 5 March 2024. The
contracts were completed a n d legal title therefore passed o n 15 April 2024. Once contracts had been exchanged neither
party could withdraw. Payment was not made until 17 April 2024 and Jamie did not physically move into the house until
1 8 April 2024.
Requirement
O n what date will Annabelle be treated as having disposed of the house for capital gains tax purposes?
A 15 March 2024
B 15 April 2024
C 17 April 2024
D 18 April 2024
LO 1e
3 Which of the following statements about capital gains is true?
A Assets which are inherited are treated as being acquired by the donee at the price originally paid by the donor.
B Wasting chattels bought and sold for more than £6,000 are chargeable to CGT.
C Stamp duty land tax paid o n the purchase of land may be deducted as part of cost o n a subsequent disposal of the
land.
D Where an asset is not sold at arm's length, the proceeds are deemed to equal cost so that no chargeable gain arises.
LO 4a, 4b
4 Katie purchased an antique vase in January 1990 for £13,000. She sold it for £5,600 in March 2024 and paid auctioneer's
fees of £800 for its sale.
Requirement
What is Katie's allowable loss on sale?
A £(7,800)
B £(8,200)
C £(7,400)
D £(7,000)
LO 4b
5 Freddy made two disposals during 2023/24.
For each of the two disposals select how the resulting gains should be treated to determine Freddy's total chargeable
gains for 2023/24.
Requirements
Gain of £4,500 o n the disposal of a caravan.
A Chargeable gain
B Exempt
Gain of £1,000 o n the sale of a sculpture. The sculpture originally cost £ 4r 000.
C Chargeable gain
D Exempt
LO4a
6 Thandie purchased a n antique chair in February 2001 for £2,500. She sold it in May 2023 for £1 1,1 50. She paid £560 as
commission to the agent who sold the chair for her.
Requirement
What is the chargeable gain o n the disposal of the chair?
A £8,650
B £8,583
C £7,650
D £8,090
LO 4b
7 David has net income for 2023/24 of £50,995. David has also made taxable gains of £33,422 for 2023/24.
Select how each of the following items will affect the calculation of David's capital gains tax liability for 2023/24, if at all.
Requirements
His unused annual exempt amount from 2022/23:
A Reduces capital gains tax payable
B Increases capital gains tax payable
C Has n o effect
Becoming a higher rate taxpayer for the first time:
D Reduces capital gains tax payable
E Increases capital gains tax payable
F Has n o effect
LO 4d
8 The Goose partnership has recently disposed of a chargeable asset. The chargeable asset was owned jointly by all the
partners.
Requirement
Who is liable to pay any capital gains tax due o n the disposal of the chargeable asset?
A Partners individually
B No capital gains tax is d u e
C Partnership
D Partners jointly
LO 1e
9 In December 1 998 Jasmine purchased a house for £1 76,000. Jasmine has always rented out the house to tenants. In
December 2001 Jasmine installed a new bathroom a t a cost of £6,400. In December 2023 Jasmine sold the house for
£642,000. Jasmine also paid stamp duty land tax at 1% of the purchase price when she bought the house.
Requirement
What is the chargeable gain o n disposal of the house?
Chargeable gain £
LO 4b
10 Jed purchased a rare painting in August 2004 for £3,200. He sold it in August 2023 for £1 4,1 50. He paid £1 42 as
commission to the agent who sold the painting for him.
Requirement
What is the chargeable gain o n the disposal of the painting?
A £10,808
B £10,950
C £13,583
D £13,347
LO 4a, 4b
11 Which two of the following items are exempt assets for capital gains tax purposes?
A £1 5,000 of shares in an unquoted trading company
B A diamond necklace purchased for £1,000 and now worth £1 7,000
C A rare collection of snakes worth £320,000
D £10,000 of National Savings Certificates
LO4a
12 Which of the following disposals is a chargeable disposal for capital gains tax purposes?
A Bequest of a house in the will of a mother to her daughter
B Giftto a friend of £12,000 in National Savings Certificates
C G i f t t o a friend of a painting worth £1,000,000
D Gift of a painting to a charity when the painting was worth £300,000
LO4a
13 Which of the following statements about capital gains is true?
A CGT is chargeable o n individuals, partnerships and companies.
B Stamp duty land tax paid o n the purchase of land may not be deducted as part of cost o n a subsequent disposal of
the land.
C Assets which are inherited are treated as being acquired by the donee at their value at the time of the donor's death.
D Where an asset is sold by a n individual, any unused personal allowance can b e offset against their chargeable gains.
LO 1e, 4b
1 4 Harriet made two d isposa Is duri n g 2023/24.
For each of the disposals, select how the resulting gains should be treated to determine Harriet's total chargeable gains
for 2023/24.
Requirements
Gain of £2,500 o n the disposal of a car:
A Chargeable gain
B Exempt
Gain of £3,000 o n the sale of a greyhound, which originally cost £4,000:
C Chargeable gain
D Exempt
LO4a
15 Which of the following does not pay tax o n its capital gains?
A NSPCC, a registered charity
B WFT pic, a quoted company
C George and Bert, who are in partnership together
D Bert, in his own right as an individual
LO4a
16 Which of the following is not a chargeable disposal made by Gordon?
A The sale of a building used by Gordon's business, to a third party
B The gift of shares to Gordon’s son
C The loss of a painting valued at £50,000 during a fire at Gordon's house
D The gift of an antique table valued at £40,000 to Gordon's daughter o n his death
LO4a
17 Peter purchased a holiday home in July 2003. The holiday home cost £100,000 and he paid solicitor's fees of £2,500
relating to the purchase.
During 2005 he spent £2,800 o n a garage for the holiday home and £580 on repairs to the plaster work when there was a
flood. Peter anticipates selling the house within the next few months.
Requirement
The total allowable expenditure o n the disposal of the holiday home will be:
A £100,000
B £102,500
C £105,300
D £105,880
LO 4b
18 Which two of the following are exempt wasting chattels for the purposes of capital gains tax?
A Office furniture, purchased for use only in Jack's business office on which he claims capital allowances
B A racehorse purchased as an investment by Marnie
C Goodwill of a computer manufacturing business with an expected life of 2 0 years
D A caravan, purchased by David for use o n family holidays
LO4a
1 9 Identify whether each of the following disposalswill be chargeable or exempt
Requirements
Javier sold a painting at auction and received £5,900 after deducting auctioneers' fees of £310. The painting had
originally cost him £3,500.
A Chargeable
B Exempt
Savion received £2,600 for some shares that h e sold after deducting £1 50 of fees. The shares originally cost him £800.
C Chargeable
D Exempt
LO4a
2 0 Lourdes bought an antique brooch for £4,000 in October 2004. In January 2024, she sold it o n the internet a n d received
£6,200 after deduction of £100 fees.
Requirement
What is Lourdes’s chargeable gain?
A £333
B £500
C £2,200
D £2,300
LO 4b
21 Which of the following may result in a chargeable gain?
A A gift of a painting worth £250,000 to a local art gallery
B A sale of shares in Beagle pic by the RSPCA, a registered charity
C A gift of antique jewellery worth £25,000 by Robert, to his daughter as a wedding gift
D Jen sold gilt e d g e d securities val ued at £40,000 to her friend Arthur for £2 7,000
LO4a
22 O n which two of the following disposals must a chargeable gain/allowable loss be calculated?
A A sale of shares in Check pic b y Cristiano. The shares were held in an ISA.
B Torey cashed in his National Savings Certificates in order to raise money for his wedding.
C Townsend lost an antique ring valued at £8,000 and received a cheque from the insurance company f o r t h a t sum.
D Toshi sold a painting for £5,000. It was given to him several years ago when his grandfather died. At that time it was
worth £6,400.
LO4a
23 Fraser sold a diamond brooch at auction in June 2023 and received £7,900 after deduction of auctioneer's fees of £300.
The brooch had cost him £6,100 i n July 2001 . Since then he had spent £250 in August 2002 having it cleaned and
repaired. In September 2005 he paid £400 to have additional diamonds and rubies added to the brooch.
Requirement
What is Fraser's chargeable gain o n disposal of the brooch?
LO 4b
