AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam - AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam

Question 1

A sole trader's profit and loss account shows a net profit of £80,000. This figure includes £4,000 of depreciation and £1,200 of client entertaining. When adjusting the accounting profit to the tax-adjusted trading profit, how should these two items be treated?

Add back both depreciation and client entertaining Deduct both depreciation and client entertaining Add back depreciation only; client entertaining is allowable Add back client entertaining only; depreciation is allowable

Correct Answer:

Add back both depreciation and client entertaining

Question 2

Under the FA2024 corporation tax regime, a standalone company with taxable total profits of £40,000 for the year ended 31 March 2025 pays corporation tax at which rate?

25% main rate 19% small profits rate 26.5% marginal effective rate 0% as it is below the threshold

Correct Answer:

19% small profits rate

Question 3

A trading company buys a new piece of qualifying plant and machinery costing £120,000 in its year ended 31 December 2024. The company has no associated companies and has not used its Annual Investment Allowance. What is the maximum capital allowance available on this purchase in the year?

£21,600 (18% writing down allowance) £60,000 (50% first-year allowance) £120,000 (full Annual Investment Allowance) £1,000,000 (the AIA limit)

Correct Answer:

£120,000 (full Annual Investment Allowance)

Question 4

For the 2024/25 tax year, an individual has employment income of £60,000 and no other income. Using the standard personal allowance and the basic rate band, how much of their income is taxed at the higher rate of 40%?

£22,300 £12,570 £0 £9,730

Correct Answer:

£9,730

Question 5

An individual disposes of shares in 2024/25 realising a chargeable gain of £18,000. They have no other disposals. Using the 2024/25 annual exempt amount, what is the taxable gain after the exemption?

£15,000 £18,000 £6,000 £3,000

Correct Answer:

£15,000

Question 1

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About this Exam

Prepare with the AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam practice quiz. This question bank includes 100 questions covering company, rate, individual, allowance, and profit. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam

This practice set contains 100 questions from the matching question bank and focuses on company, rate, individual, allowance, and profit. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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About this Exam

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AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam

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