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ACCA Taxation (TX) 2025 past questions and answers

This 2025 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 2025 set with instant marking.

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Sample ACCA Taxation (TX) 2025 questions

1. For the UK 2024/25 tax year, Maya has adjusted net income of £108,000. Her personal allowance is £12,570 and is reduced by £1 for every £2 of adjusted net income above £100,000. UK non-savings income tax rates are 20%, 40% and 45%. What is Maya's personal allowance?
  1. £4,570
  2. £8,570
  3. £10,570
  4. £12,570

Answer: B. £8,570

Her income exceeds £100,000 by £8,000, reducing the allowance by £4,000. £12,570 − £4,000 = £8,570; the allowance is not reduced pound for pound.

2. In 2024/25, Imran's taxable non-savings income is £30,000 and he receives £2,000 of dividends. The basic-rate band is £37,700; the dividend allowance is £500; dividend rates are 8.75% (basic), 33.75% (higher) and 39.35% (additional). His dividends remain within the basic-rate band. How much income tax is due on the dividends?
  1. £43.75
  2. £131.25
  3. £175.00
  4. £262.50

Answer: B. £131.25

The first £500 is covered by the dividend allowance. The remaining £1,500 is taxed at 8.75%, giving £131.25; applying the rate to the full dividend ignores the allowance.

3. For 2024/25, an employee earns £60,000 in the year. Employee Class 1 NIC is 8% on annual earnings from £12,570 to £50,270 and 2% above £50,270. What is the employee's annual Class 1 NIC?
  1. £2,416.00
  2. £3,016.00
  3. £3,210.60
  4. £4,800.00

Answer: C. £3,210.60

The main-rate amount is (£50,270 − £12,570) × 8% = £3,016. The excess is (£60,000 − £50,270) × 2% = £194.60, giving total NIC of £3,210.60.

4. In 2024/25, a UK individual sells a residential investment property and makes a gain of £20,000 before the annual exempt amount. The annual exempt amount is £3,000. Residential property gains are taxed at 18% within the unused basic-rate band and 24% above it. Her taxable income has used £30,000 of the £37,700 basic-rate band, and she has no other gains or losses. What is the capital gains tax due?
  1. £3,060
  2. £3,400
  3. £3,618
  4. £4,080

Answer: C. £3,618

The taxable gain is £20,000 − £3,000 = £17,000. The unused basic-rate band is £7,700, so tax is £7,700 × 18% + £9,300 × 24% = £1,386 + £2,232 = £3,618.

5. Nora sells her UK home in 2024/25 after owning and occupying it as her only or main residence throughout the entire ownership period. She did not use it for business or let any part of it. Which treatment applies to the gain, assuming she meets the stated conditions for principal private residence relief?
  1. The whole gain is exempt from capital gains tax under principal private residence relief.
  2. Only the first £3,000 of the gain is exempt.
  3. The gain is taxed at 18% because it is residential property.
  4. The gain is taxed at 24% because it is residential property.

Answer: A. The whole gain is exempt from capital gains tax under principal private residence relief.

Occupation as the only or main residence throughout, with no business use or letting, gives full principal private residence relief on these facts. The annual exempt amount and residential rates are not needed to tax an entirely relieved gain.

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