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ACCA Strategic Professional · Advanced Taxation (UK) · Taxes applicable to a given situation or course of action and their impact

In the ATX-UK exam, a question gives no information about tax rates for future years and does not tell you otherwise. Which assumption should a candidate make according to the supplementary instructions?

Candidates should assume that the tax rates and allowances for 2025/26 and the financial year to 31 March 2026 continue to apply for the foreseeable future, unless the question instructs otherwise. No inflation uplifts or estimated future changes should be built into the answer.

  1. AThe tax rates and allowances for 2025/26 and the financial year to 31 March 2026 continue to apply for the foreseeable futureCorrect
  2. BTax rates will rise each year in line with inflation
  3. CThe rates for the year of the transaction are to be estimated by the candidate
  4. DAll allowances and bands are frozen but rates are to be increased by 1% a year

Explanation

Supplementary instruction 1 states that the 2025/26 rates and allowances and those for the financial year to 31 March 2026 are assumed to continue for the foreseeable future unless the question says otherwise. The other options invent changes that are not given.

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