ACCA TX — Taxation Practice Exam 4

Section A

HM Revenue & Customs (HMRC) has the power to raise a discovery assessment if they discover a loss of tax. If the loss of tax was brought about carelessly by the taxpayer, what is the maximum time limit for HMRC to raise a discovery assessment?

Section A

Marcus owns a coastal cottage that qualifies as a Furnished Holiday Letting (FHL). During the current tax year, the property was available for letting for 250 days and actually let to the public for 90 days. Due to unforeseen travel restrictions, he could not meet the actual letting condition. He has another FHL property that was let for 150 days. Which of the following elections can Marcus make to preserve the FHL status of the coastal cottage?

Section A

An environmental NGO provides its director with a zero-emission electric company car. The list price of the car is £40,000. The NGO also pays for the installation of a charging point at the director's home costing £1,200. What is the Class 1A National Insurance Contribution (NIC) liability for the NGO regarding these benefits for the 2023/24 tax year? (Assume the appropriate percentage for a zero-emission car is 2% and Class 1A rate is 13.8%).

Section A

Helena sold two assets during the tax year: an antique clock for £7,500 (cost £3,000) and a racehorse for £12,000 (cost £5,000). Both are tangible movable property. What is Helena's total chargeable gain before the annual exempt amount?

Section A

Julian operates a manufacturing business as a sole trader. He decides to scale down his operations and sells 40% of his factory machinery. He continues to run the business at a reduced capacity. Does this disposal qualify for Business Asset Disposal Relief (BADR)?