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2026 Statistics
Key Facts: CTA CBE — Law Exam
50 Q
Exam Questions
CIOT Exam Regulations
1 Hour
Duration
CIOT Exam Regulations
60%
Pass Mark
CIOT Exam Regulations
£127
Exam Fee
CIOT Exam Regulations
The CTA Law CBE is a 1-hour, 50-MCQ computer-based exam with a 60% pass mark administered by CIOT.
Sample CTA CBE — Law Practice Questions
Try these sample questions to test your CTA CBE — Law exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Under the doctrine of judicial precedent in the English legal system, which of the following courts is bound by the precedent set by the UK Supreme Court, but cannot bind the UK Supreme Court?
A.The Court of Appeal
B.The European Court of Human Rights
C.The Judicial Committee of the Privy Council
D.The High Court sitting in its appellate capacity only when dealing with non-binding obiter statements
Explanation: The UK Supreme Court stands at the apex of the English court hierarchy. Its decisions bind all lower courts, including the Court of Appeal, High Court, and County Court. The Supreme Court is not bound by decisions of the Court of Appeal.
2Which component of a judicial decision creates the binding legal rule under the principle of stare decisis?
A.Obiter dicta
B.Ratio decidendi
C.Per incuriam commentary
D.Dissenting judicial opinion
Explanation: The 'ratio decidendi' (reason for the decision) is the core legal principle or rule upon which the decision is based. It constitutes the binding precedent that lower courts must follow in future cases with similar material facts.
3When interpreting a statute, what does the 'Literal Rule' require judges to do?
A.Give statutory words their ordinary, plain grammatical meaning, even if it leads to an absurd result
B.Modify the literal meaning of words to avoid an absurd or repugnant outcome
C.Examine the historical defect or mischief in the common law that Parliament intended to remedy
D.Consult Parliamentary debates in Hansard whenever any ambiguity arises
Explanation: The Literal Rule dictates that judges must give statutory words their plain, ordinary, and literal grammatical meaning, regardless of whether the outcome appears unjust or absurd. Parliament's intention is presumed to be expressed in the plain text.
4Which rule of statutory interpretation originates from *Heydon's Case* (1584) and focuses on identifying the defect in common law that Parliament intended to remedy?
A.The Literal Rule
B.The Mischief Rule
C.The Golden Rule
D.The Purposive Approach
Explanation: The Mischief Rule established in *Heydon's Case* (1584) requires courts to examine four things: the common law prior to the Act, the defect or mischief for which the common law did not provide, the remedy Parliament appointed, and the true reason for the remedy.
5In *Re Sigsworth* [1935], a son murdered his mother, who had not made a will. Under the Administration of Estates Act 1925, he was her sole issue and entitled to inherit. Which rule of statutory interpretation did the court apply to prevent him from benefiting from his crime?
A.The Literal Rule
B.The Mischief Rule
C.The Golden Rule
D.The Ejusdem Generis Rule
Explanation: The court applied the Golden Rule (specifically the broader approach) to avoid a repugnant outcome. A literal application of the Administration of Estates Act 1925 would have rewarded a murderer with his victim's estate, which the court modified on public policy grounds.
6Under the landmark ruling in *Pepper v Hart* [1993], under what specific circumstances may UK courts refer to Hansard (Parliamentary debates) as an extrinsic aid to statutory interpretation?
A.In any case where a statute is relevant to taxation disputes
B.Only when the legislation is ambiguous, obscure, or leads to absurdity, and the statements were made by a Minister or promoter of the Bill
C.Whenever a judge determines that the literal meaning of a statute is clear but unfair
D.Only with written permission from the Speaker of the House of Commons
Explanation: Under *Pepper v Hart* [1993], Hansard may be consulted only if: (1) the statutory provision is ambiguous, obscure, or leads to absurdity; (2) the material relied upon consists of statements by a Minister or promoter of the Bill; and (3) the statements are clear.
7Which of the following forms of secondary (delegated) legislation is made by the King in Council upon the advice of the Privy Council?
A.Statutory Instrument
B.Order in Council
C.Byelaw
D.Public General Act
Explanation: Orders in Council are delegated legislation made by the Sovereign on the advice of the Privy Council. They are typically used in national emergencies, transferring powers between government departments, or bringing Acts into force.
8If a government Minister enacts a Statutory Instrument that exceeds the express powers granted by the enabling Parent Act of Parliament, the Statutory Instrument can be declared invalid by the High Court under which doctrine?
A.Procedural ultra vires
B.Substantive ultra vires
C.Stare decisis
D.Obiter dictum
Explanation: Substantive ultra vires applies when secondary legislation exceeds the scope of powers conferred by the enabling (parent) Act of Parliament. The courts can declare such delegated legislation void and unenforceable.
9What was the significance of the House of Lords Practice Statement 1966?
A.It established that the House of Lords was bound by decisions of the Court of Appeal
B.It permitted the House of Lords (now Supreme Court) to depart from its own previous decisions when it appears right to do so
C.It abolished the use of the Golden Rule in statutory interpretation
D.It mandated that all tax disputes must originate in the Chancery Division of the High Court
Explanation: Prior to 1966, the House of Lords considered itself strictly bound by its own prior decisions (*London Street Tramways v LCC*). The Practice Statement 1966 declared that while past decisions are normally binding, the Law Lords could depart from a previous decision 'when it appears right to do so'.
10Under the decision in *Young v Bristol Aeroplane Co Ltd* [1944], in which of the following situations is the Court of Appeal (Civil Division) permitted to depart from its own prior decision?
A.Whenever a bench of five judges sits instead of the standard bench of three
B.When two previous decisions of the Court of Appeal conflict, requiring the court to choose which to follow
C.Whenever the court believes that applying the previous decision would create economic hardship
D.When the Supreme Court refuses to grant permission to appeal
Explanation: Under *Young v Bristol Aeroplane Co Ltd* [1944], the Court of Appeal is bound by its own prior decisions subject to three exceptions: (1) conflicting CA decisions; (2) a CA decision inconsistent with a subsequent Supreme Court decision; and (3) a CA decision made *per incuriam*.
About the CTA CBE — Law Exam
The CTA Law CBE is a compulsory computer-based examination set by the Chartered Institute of Taxation (CIOT) testing fundamental legal knowledge relevant to tax professionals in the UK.
Assessment
50 multiple choice questions covering English Legal System, Contract Law, Tort, Corporate Law, and Partnership & Insolvency Law.
Time Limit
1 hour
Passing Score
60%
Exam Fee
£127 (CIOT)
CTA CBE — Law Exam Content Outline
20%
English Legal System & Sources of Law
Court structure, judicial precedent, legislation, statutory interpretation.
25%
Contract Law Principles
Formation, terms, vitiating factors, breach, remedies, and agency.
15%
Law of Tort
Negligence, duty of care, breach, causation, loss, vicarious liability, professional negligence.
25%
Companies Act & Corporate Law
Companies Act 2006, corporate personality, directors' duties, share capital, resolutions.
15%
Partnership & Insolvency Law
Partnership Act 1890, LLPs Act 2000, corporate insolvency, personal bankruptcy.
How to Pass the CTA CBE — Law Exam
What You Need to Know
- Passing score: 60%
- Assessment: 50 multiple choice questions covering English Legal System, Contract Law, Tort, Corporate Law, and Partnership & Insolvency Law.
- Time limit: 1 hour
- Exam fee: £127
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
CTA CBE — Law Study Tips from Top Performers
1Master key statutory provisions including the Companies Act 2006, Partnership Act 1890, and Insolvency Act 1986.
2Understand the mechanics of contract formation, terms, and remedies for breach.
3Focus on directors' statutory duties under ss. 171-177 of the Companies Act 2006.
4Practice timed multiple-choice questions to manage the 1-hour exam duration efficiently.
Frequently Asked Questions
What is the format of the CTA Law CBE?
The CTA Law CBE is a 1-hour computer-based examination comprising 50 multiple choice questions.
What is the pass mark for the CTA Law CBE?
The pass mark is 60% (30 correct answers out of 50).
What is the fee for taking the exam?
The entry fee is £127 per attempt.
Who administers the CTA Law CBE?
The exam is administered by the Chartered Institute of Taxation (CIOT).