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ACCA Taxation (TX) 2022 past questions and answers

This 2022 ACCA Taxation (TX) set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2022 set with instant marking.

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Sample ACCA Taxation (TX) 2022 questions

1. For the 2021/22 UK tax year, Maya is resident in England and earns employment income of £62,000, with no other income or deductions. Her personal allowance is £12,570; income tax rates are 20% on the first £37,700 of taxable income, 40% up to £150,000 and 45% above £150,000. What is Maya's income tax liability?
  1. £10,800
  2. £11,000
  3. £12,232
  4. £13,232

Answer: C. £12,232

Taxable income is £62,000 − £12,570 = £49,430. Tax is £37,700 × 20% (£7,540) plus £11,730 × 40% (£4,692), totalling £12,232; the main distractors misapply the personal allowance or higher-rate band.

2. In 2021/22, an employee has annual earnings of £60,000 and is paid evenly throughout the year. For this annual calculation, the primary Class 1 NIC rates are 12% on earnings from £9,568 to £50,270 and 2% above £50,270. What is the employee's total Class 1 primary NIC, rounded to the nearest pound?
  1. £5,079
  2. £6,000
  3. £4,884
  4. £1,946

Answer: A. £5,079

NIC is (£50,270 − £9,568) × 12% = £4,884.24, plus (£60,000 − £50,270) × 2% = £194.60, giving £5,078.84 or £5,079. £6,000 incorrectly applies 12% to all earnings.

3. For 2021/22, Leo is an English taxpayer with taxable non-savings income of exactly £37,700, so his basic-rate band is fully used. He receives dividends of £5,000. The dividend allowance is £2,000; dividend tax rates are 7.5% in the basic band, 32.5% in the higher band and 38.1% in the additional band. What is the income tax on these dividends?
  1. £225
  2. £600
  3. £1,625
  4. £975

Answer: D. £975

The £2,000 allowance is taxed at 0%, leaving £3,000 taxed at the higher dividend rate of 32.5% because Leo's basic band is already used. Tax is £975; £225 wrongly applies the basic dividend rate.

4. In 2021/22, Nia sells ordinary shares for £45,000. Their allowable cost was £25,000 and allowable selling costs are £700. Her £12,300 annual exempt amount is available, and sufficient unused basic-rate band is available for all her taxable gain. For non-residential assets, CGT is 10% within the unused basic-rate band and 20% above it. What is Nia's CGT liability?
  1. £2,000
  2. £700
  3. £1,230
  4. £1,930

Answer: B. £700

The gain is £45,000 − £25,000 − £700 = £19,300. After the £12,300 annual exempt amount, £7,000 is taxable and all falls in the unused basic-rate band, so CGT is £700. Applying 20% would ignore the stated available band.

5. In 2021/22, higher-rate taxpayer Omar sells a UK residential property that is not his only or main residence. His chargeable gain after allowable costs is £30,000; his £12,300 annual exempt amount has already been used. Residential-property CGT rates are 18% for gains within the basic-rate band and 28% above it. What CGT is due on this gain?
  1. £8,400
  2. £5,400
  3. £6,000
  4. £3,960

Answer: A. £8,400

The full £30,000 gain is taxable at 28% because Omar is a higher-rate taxpayer and the exemption is used: £30,000 × 28% = £8,400. £5,400 uses the residential basic-rate CGT rate despite the facts.

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