Element 1 Revision (1.4) The principles of taxation and howQuiz

Which tax is levied on the profit made from the sale of assets such as share investments?

• Income Tax

• National Insurance

• Capital Gains Tax

• Corporation Tax

What is the standard rate of VAT in the UK as of 2023?

• 15%

• 17.5%

• 20%

• 25%

What is the purpose of National Insurance contributions?

• To fund public education

• To fund state pensions and other benefits

• To support environmental projects

• To finance road infrastructure

Which of the following is a direct tax?

• VAT

• Excise duty

• Income Tax

• Customs duty

How is Corporation Tax collected in the UK?

• Through PAYE

• Through self-assessment tax returns

• Through VAT returns

• Through excise duty payments

What is the main purpose of raising revenue through taxation?

• To control inflation

• To redistribute income

• To fund public services

• To reduce unemployment

Which type of pension scheme is funded by regular contributions from both employers and employees?

• Non-contributory pension scheme

• Occupational pension scheme

• Private pension scheme

• State pension scheme

What is the term for the tax on employment where both the employer and employee make contributions?

What is a progressive tax?

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that increases as income increases

• A tax that is applied only to property

Which of the following is an example of an indirect tax?

• Corporation Tax

• Income Tax

• National Insurance

• Value Added Tax (VAT)