Personal Tax (UK Income Tax) Flashcards
6 cards from real AAT L4 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Personal Tax (UK Income Tax) flashcards as text
Capital gains tax (CGT) for basic rate taxpayers on gains from the disposal of assets other than residential property in 2024/25 is charged at:
Answer: 10%
From 30 October 2024, the CGT rates for non-property assets are 18% (basic rate) and 24% (higher/additional rate) — replacing the previous 10%/20% rates. However, at the time of the question context, 10% basic rate was being phased from 18% to the new rate. Note: from October 2024 Budget, basic rate is 18%.
Business Asset Disposal Relief (BADR) applies a CGT rate of 10% on qualifying gains up to a lifetime limit of:
Answer: £1,000,000
BADR (formerly Entrepreneurs' Relief) provides a 10% CGT rate on qualifying gains from disposing of all or part of a business, business assets, or shares in a qualifying trading company — subject to a £1 million lifetime limit.
For CGT, the annual exempt amount for individuals in 2024/25 is:
Answer: £3,000
The CGT annual exempt amount has been progressively reduced: £12,300 (2022/23), £6,000 (2023/24), and £3,000 from 2024/25 — significantly reducing the tax-free allowance for individuals.
For UK income tax, benefits in kind for employees are reported on:
Answer: Form P11D submitted by the employer to HMRC by 6 July following the tax year
Employers must report taxable benefits in kind on forms P11D (or through payrolling benefits) and submit them to HMRC by 6 July following the end of the tax year. The employee also declares them on self-assessment.
A sole trader's trading losses can be relieved against:
Answer: Total income of the current year and/or previous year, or carried forward against future trading profits
Under ITA 2007, trading losses can be set against total income of the current year and/or the previous year; alternatively, early-year losses have special rules allowing carry-back; or losses can be carried forward against future trading profits.
The maximum annual contribution to a pension for income tax relief purposes is limited to:
Answer: The lower of £60,000 (annual allowance) and 100% of the individual's UK earnings for the year
Tax-relievable pension contributions are capped at the lower of the annual allowance (£60,000 for 2023/24 onwards, up from £40,000) and 100% of the individual's relevant UK earnings. Contributions above the annual allowance trigger an annual allowance charge.