AFAT2 Mock Paper 3 — Taxation Unit 2
Advanced AFAT Unit 2 mock integrating CGT with BADR, complex IHT planning, trust charges, pension taper and multi-wrapper suitability for high-net-worth clients.
- Questions
- 30
- Minutes
- 45
- Pass (70%)
- 21/30
Sit it timed
The timer starts when you press the button. You can still finish after it runs out — it is there to mimic exam pressure, not to lock you out.
Free preview: the first 5 of 30 questions, with a timer to match. Unlock the full paper
Answer options are shuffled on every attempt. Your progress is saved as you go, so a refresh won't lose it.
About AFAT2 Mock Paper 3
This is mock paper 3 of 3 for AFAT2, the Taxation — Unit 2 unit of CeMAP. The 3 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the harder tier: it is deliberately pitched above the live exam, so passing it means you should clear the real thing with room to spare.
Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the 2025/26 five-unit CeMAP syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.
Format, timing and pass mark
AFAT2 Mock Paper 3 follows the live AFAT2 format: 20 standalone questions + 2 case studies × 5 linked questions, in 45 minutes — about 90 seconds a question. Pass mark 21/30 (70%), as in the real assessment. There is no negative marking, so answer everything. 2 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.
What this paper tests
The 30 questions in AFAT2 Mock Paper 3 break down across 22 topic areas:
- Case study — Moss5 questions
- Case study — Price5 questions
- Adjusted income1 question
- Annual exempt1 question
- BADR — excess1 question
- CGT — BADR1 question
- CGT — BADR calc1 question
- CGT — residential1 question
- GIA vs ISA1 question
- IHT — CLT1 question
- IHT — estate £2.3m1 question
- IHT — RNRB taper1 question
- IHT — seven year1 question
- IHT — transferable NRB1 question
…plus 8 further topic areas spread across the case studies.
Try two questions from AFAT2 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
CGT — BADR
BADR lifetime limit per individual is:
- AUnlimited since 2020
- B£3,000
- C£60,000
- D£1 million
Reveal the answer
D is correct. BADR (formerly entrepreneurs' relief) lifetime limit £1m qualifying gains. Not unlimited. Others are distractors.
CGT — BADR calc
Gain £1,150,000 on BADR qualifying disposal taxed at 18% on qualifying portion within limit gives BADR tax before annual exempt:
- A£180,000 on £1m plus standard rates on excess
- B£0
- C45% on all
- D£207,000 on full gain
Reveal the answer
A is correct. £1m × 18% = £180,000 BADR portion; excess £150,000 at higher general rate 20% if shares.
Scored under 70%? Revise these next
A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:
- →Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
- →Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
- →Re-read the syllabus coverage on the AFAT2 exam guide, then sit the next paper in the ramp.
The other AFAT2 mock papers
3 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.