1. Which TWO of the following statements are TRUE about inheritance tax? It is an indirect tax. It is a progressive tax. \& It is an environmental tax. It is a redistributive tax. 2. Which TWO of the following statements are FALSE? Corporation tax is a direct tax on the turnover of companies. \( \varangle \) National insurance is a direct tax suffered by employees, employers and the self -employed on earnings. Inheritance tax is a direct tax on transfers of capital by individuals. \& Value added tax is a direct tax on the supply of goods and services by businesses. 3. Which TWO of the following have legal force? \& Revenue and Customs Brief \& A Statutory Instrument Q An Act of Parliament \& An Extra Statutory Concession 4. Near plc wishes to appeal against the assessment of 10,000,000 of corporation tax by HM Revenue \& Customs (HMRC). By whom is Near plc's appeal most likely to be heard? a. By the First Tier Tribunal b. By the Upper Tribunal c. By the Supreme Court d. By the Court of Appeal 5. Which TWO of the following statements about tax appeals are correct? \& The First Tier Tribunal deals with straightforward cases such as the imposition of fixed filing penalties The Crown Prosecution Service (CPS) conducts tax appeals against taxpayers - The taxpayer must apply for an internal review by HM Revenue and Customs (HMRC) before making an appeal to the Tax Tribunal \& The Upper Tribunal hears appeals against decisions of the First Tier Tribunal 6. Tim has already realised a capital gain on the disposal of Asset 1 but is proposing to pretend that the disposal date actually falls into next tax year. Tim is also planning to dispose of Asset 2 but is proposing to delay the actual sale until after 5 April. In relation to which disposal(s) is Tim committing tax evasion? 6. Tim has already realised a capital gain on the disposal of Asset 1 but is proposing to pretend that the disposal date actually falls into next tax year. Tim is also planning to dispose of Asset 2 but is proposing to delay the actual sale until after 5 April. In relation to which disposal(s) is Tim committing tax evasion? a. Both disposals b. Neither disposal c. Asset 1 only d. Asset 2 only 7. Simone was UK resident in the tax year 2020/21. She worked full-time in Egypt throughout the tax year 2021/22. What is the maximum number of days which Simone can spend in the UK and be treated as automatically not resident in the UK for the tax year 2021/22? a. 15 b. 45 c. 90 d. 182 8. Which TWO of the following types of income are exempt from income tax? Interest on an NS\&I Investment account Premium bond prizes \& Interest on UK government stocks ('gilts') Dividends on shares held in an Individual Savings Account 9. James and Joan are a married couple. In the tax year 2021/22, James has taxable non-savings income (after deducting his personal allowance) of 13,500. Joan has no income in the tax year 2021/22. Joan has made an election in relation to her personal allowance for the tax year 2021/22. What is James income tax liability for the tax year 2021/22? a. 186 b. 2,448 c. 1,440 d. 2,700 10. In the tax year 2021/22 Natalee receives employment income of 170,000. She made a gross gift aid donation of 10,000 in January 2022. b. 2,448 c. 1,440 d. 2,700 10. In the tax year 2021/22 Natalee receives employment income of 170,000. She made a gross gift aid donation of 10,000 in January 2022. What is Natalee's income tax liability for the tax year 2021/22? a. 59,460 b. 61,460 c. 58,960 d. 53,432 11. Kirk had the following taxable income (after deduction of his personal allowance) for the tax year 2021/22: What is Kirk's total income tax liability for the tax year 2021/22? 2,149 2,299 2,349 2,499 12. Kimesha works for Scott Ltd for an annual salary of 18,000. On 30 September 2021, she received a bonus of 4,000 in respect of Scott Ltd.'s trading results for the year ended 31 March 2021. She expects to receive a bonus of 4,800 on 30 September 2022 in respect of Scott Ltd.'s results for the year ended 31 March 2022. Kimesha also received 500 from a customer on 1 December 2021 as a gratuity for good service. What is Kimesha's employment income for the tax year 2021/22? a. 22,000 b. 22,800 c. 22,500 d. 23,300 13. Anthony is employed by Fresh plc. He is provided with a brand-new car available for private use for the tax year 2021/22. The car has CO2 emissions of 107g/km and a list price of 20,000 although Fresh plc actually paid 18,000 for the car as the result of a dealer discount. The car has a diesel engine which does not meet the RDE2 standard. No private fuel is provided. What is Anthony's taxable car benefit for the tax year 2021/22? a. 4,500 b. 5,220 c. 5,000 d. 5,800 14. Mark rents out a room in his own residence throughout 2021/22. The rent is 150 a week. Mark's expenses of the letting are 20 per week, none of which is loan interest on the property. What is the amount of property business income taxable on Mark for 2021/22 if he makes any relevant election? a. 6,760 b. 0 c. 7,800 d. 300 15. Camille is self-employed, preparing her accounts to 5 April each year. She claims capital allowances on a motor car used in her business. The motor car has a CO2 emission rate of 145 grams per kilometre, with 40% of Olive's mileage for private purposes. The motor car had a tax written down value of 12,000 at 6 April 2021 . Camille sold the motor car for 6,000 on 1 November 2021 . What amount of capital allowances can Camille claim in respect of the motor car for the tax year 2021/22 ? a. 3,600 b. 648