What is the CTA Awareness paper?

It is an objective-format exam in the UK Chartered Tax Adviser qualification testing breadth across several tax modules, with candidates answering three chosen modules of short-form questions.

Who offers the CTA qualification?

The Chartered Institute of Taxation (CIOT) offers the Chartered Tax Adviser (CTA) qualification, the leading UK tax credential.

What format is the Awareness paper?

Each module uses short-form multiple-choice and multiple-response questions (about 12 questions worth 5 marks each), and the paper runs 3 hours 15 minutes.

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Sample CTA Awareness Practice Questions

Try these sample questions to test your CTA Awareness exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the standard UK personal allowance for income tax in the 2025/26 tax year?

A.£11,850

B.£12,500

C.£12,570

D.£15,000

Explanation: For 2025/26 the standard personal allowance is £12,570. It has been frozen at this level since 2021/22 and is expected to remain frozen for several more years.

2At what level of adjusted net income does an individual's personal allowance become fully withdrawn in 2025/26?

A.£100,000

B.£110,000

C.£125,140

D.£150,000

Explanation: The personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000. As the allowance is £12,570, it is fully withdrawn once income reaches £125,140 (£100,000 + 2 × £12,570).

3In 2025/26 the basic rate of income tax of 20% applies to taxable income (after the personal allowance) up to which threshold?

A.£37,700

B.£50,270

C.£12,570

D.£125,140

Explanation: The basic rate band for 2025/26 is £37,700 of taxable income. Adding the £12,570 personal allowance gives a higher-rate threshold of £50,270 for someone with only the standard allowance.

4What is the additional rate of income tax for 2025/26 and the income threshold at which it begins?

A.45% above £125,140

B.40% above £50,270

C.50% above £150,000

D.45% above £150,000

Explanation: For 2025/26 the additional rate of 45% applies to taxable income above £125,140. The threshold was reduced from £150,000 to £125,140 from 6 April 2023.

5Anita has employment income of £60,000 in 2025/26 and the standard personal allowance. Ignoring NIC, what is her income tax liability?

A.£11,432

B.£12,432

C.£13,432

D.£10,860

Explanation: Taxable income is £60,000 − £12,570 = £47,430. The first £37,700 is taxed at 20% (£7,540) and the remaining £9,730 at 40% (£3,892). The total is £7,540 + £3,892 = £11,432.

6What is the dividend allowance (the nil-rate amount for dividend income) for 2025/26?

A.£2,000

B.£1,000

C.£500

D.£5,000

Explanation: The dividend allowance for 2025/26 is £500. Dividends within this allowance are taxed at 0%, although they still use up the relevant tax band.

7What are the dividend tax rates for 2025/26 for basic, higher and additional rate taxpayers respectively?

A.8.75%, 33.75%, 39.35%

B.7.5%, 32.5%, 38.1%

C.10%, 32.5%, 42.5%

D.20%, 40%, 45%

Explanation: For 2025/26 dividend income above the £500 allowance is taxed at 8.75% (basic), 33.75% (higher) and 39.35% (additional). These rates were increased by 1.25 points in 2022/23 and remain unchanged for 2025/26.

8What is the personal savings allowance for a higher-rate taxpayer in 2025/26?

A.£500

B.£1,000

C.£0

D.£5,000

Explanation: The personal savings allowance is £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers. Savings income within the allowance is taxed at 0%.

9The starting rate for savings of 0% applies to up to how much savings income in 2025/26, and is reduced by non-savings income above the personal allowance?

A.£5,000

B.£1,000

C.£2,500

D.£6,000

Explanation: The starting rate band for savings is £5,000, taxed at 0%. It is reduced £1 for £1 by non-savings, non-dividend income exceeding the personal allowance, so it is only available where such income is below £17,570.

10Which National Insurance class is paid by employees on their earnings between the primary threshold and upper earnings limit in 2025/26?

A.Class 1 primary

B.Class 1 secondary

C.Class 2

D.Class 4

Explanation: Employees pay primary Class 1 NIC on earnings above the primary threshold (£12,570 a year). The main rate is 8% up to the upper earnings limit of £50,270 and 2% above it.

About the CTA Awareness Practice Questions

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