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ACCA Taxation (TX) 2026 past questions and answers

This 2026 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 2026 set with instant marking.

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Sample ACCA Taxation (TX) 2026 questions

1. For the 2025/26 tax year under Finance Act 2025 rules, Amina is resident in England and has employment income of £41,000 and no other income. Her personal allowance is £12,570 and the basic rate is 20% on the first £37,700 of taxable income; higher and additional rates are 40% and 45%. What is her income tax liability?
  1. £5,686
  2. £8,200
  3. £7,540
  4. £4,886

Answer: A. £5,686

Taxable income is £41,000 − £12,570 = £28,430, all within the basic rate band, so tax is £28,430 × 20% = £5,686. £7,540 incorrectly applies 20% to the entire basic-rate band rather than to Amina's taxable income.

2. For 2025/26, employee Class 1 NIC is 8% on annual earnings between the primary threshold of £12,570 and upper earnings limit of £50,270, and 2% above £50,270. Daniel earns £60,000 from one employment. What is his employee Class 1 NIC for the year, rounded to the nearest pound?
  1. £4,800
  2. £3,211
  3. £3,770
  4. £1,200

Answer: B. £3,211

NIC is (£50,270 − £12,570) × 8% + (£60,000 − £50,270) × 2% = £3,016 + £194.60 = £3,210.60, rounded to £3,211. £4,800 wrongly applies 8% to all earnings.

3. In 2025/26, under Finance Act 2025 rules, Elena sells non-residential shares and makes a gain of £18,000 before the annual exempt amount. The annual exempt amount is £3,000. Her unused basic-rate band available for gains is £6,000; the CGT rates on these shares are 18% within that band and 24% above it. What is her CGT liability on this disposal?
  1. £2,700
  2. £3,600
  3. £3,240
  4. £4,320

Answer: C. £3,240

The taxable gain is £18,000 − £3,000 = £15,000. CGT is (£6,000 × 18%) + (£9,000 × 24%) = £1,080 + £2,160 = £3,240; £3,600 wrongly applies 24% to the entire taxable gain.

4. For 2025/26, under Finance Act 2025 rules, George has a £5,000 gain on non-residential assets and an allowable current-year capital loss of £2,000. His individual annual exempt amount is £3,000. Current-year capital losses are set against gains before deducting the annual exempt amount. What taxable gain remains?
  1. £2,000
  2. £3,000
  3. £5,000
  4. £0

Answer: D. £0

The £2,000 loss first reduces gains to £3,000; the £3,000 annual exempt amount then reduces the taxable gain to nil. £2,000 results from incorrectly deducting the annual exempt amount before the loss.

5. A UK company has a 12-month accounting period in 2025/26, taxable total profits of £40,000, and no associated companies. Under Finance Act 2025 rules, the small profits rate is 19% for profits up to £50,000 and the main rate is 25% above £250,000, with marginal relief between the limits. What is the company's corporation tax liability?
  1. £7,600
  2. £10,000
  3. £9,500
  4. £760

Answer: A. £7,600

The company's profits are below the £50,000 small-profits limit, so corporation tax is £40,000 × 19% = £7,600. £10,000 applies the main rate instead of the small profits rate.

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