SQE1 (Solicitors Qualifying Examination) · Business law and practice

Agency, financial services and business tax

10 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. The board of Cobb Ltd limits its managing director, Dee, to contracts below £50,000. Dee, who customarily makes larger purchases, signs a £200,000 order with a supplier who has no idea of the limit. T…
  2. Ahmed signs a lease of a shop 'for and on behalf of Blue Ltd', which has not yet been incorporated. Blue Ltd is later formed and adopts the lease. Who is liable on the lease, applying section 51 of th…
  3. What is the main rule about a company's standard corporation tax charge for accounting periods starting in 2025/26 on profits above £250,000?
  4. A sole trader makes a taxable profit of £40,000 in 2025/26 but draws only £25,000 from the business for personal use. On how much is she assessed to income tax before allowances?
  5. Jonah, a higher rate taxpayer, sells shares in 2025/26 and realises a chargeable gain of £53,000. Ignoring losses and other disposals, how much capital gains tax is due, using the 2025/26 annual exemp…
  6. A company sells a warehouse at a profit. How is the gain treated for tax purposes?
  7. Which statement about the general prohibition in section 19 of the Financial Services and Markets Act 2000 is correct?
  8. A person with no authorisation regularly arranges deals in investments for clients in return for commission. Which consequence follows under FSMA 2000?
  9. Section 21 of FSMA 2000 restricts financial promotions. What does it prohibit?
  10. Marcus, a director of a listed company, learns in confidence of an unannounced takeover bid and buys shares in the target before the announcement. Which offence is he most likely to commit?

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