The Principles of Taxation exam has 42 questions. 40 questions (80% of the overall marks) are presented in the form of multiple-choice, multi-part multiple-choice, multiple-response or numeric entry. Two questions are scenario-based (worth 20% of the overall marks, 10% each), each question will cover a single syllabus area: income tax and NIC, and corporation tax.
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The Principles of Taxation sample exam has been provided to demonstrate the format of the objective test questions that you can expect within the exam - please note this is not intended for use as a mock exam.
The AIA was due to revert from £1 million to £200,000 on 1 January 2022.
On 27 October 2021 the Chancellor, in the Budget speech, announced an extension to the temporary £1 million cap. The AIA will now remain at £1 million until 31 March 2023 and are expected to revert back to £200,000 on 1 April 2023
ICAEW tax learning materials were written before this announcement and they use 1 January 2022 as the date at which the AIA changes to £200,000.
2022 exam questions assume that the AIA is £200,000 pa. Students should answer questions in line with the examples and questions in the Principles of Taxation learning materials ie using the £200,000 cap. The learning materials include only accounting periods beginning on/ after 1 January 2022 and use the AIA cap of £200,000 pa.