Married Couples and Child Benefit

Question 1

How are spouses and civil partners taxed?

Answer 1

As two separate people

Question 2

What should spouse and civil partners should ensuire?

Answer 2

Each spouse/civil partner uses their nil rate bands by transferring assets, bank accounts or shares

Question 3

How is income for jointly held property split?

Answer 3

50:50 unless the couple make a joint declaration to HMRC specifying the actual propertions they are entitled to

Question 4

Where does an income tax charge apply?

Answer 4

If a taxpayer receives child beneift and taxpayer has adjusted net income over £50000 in a tax year

Question 5

What represents a partner?

Answer 5

Couple are living together as though they were married or civil partners. Could mean a spouse

Question 6

What is the effect of child benefit income tax charge?

Answer 6

To recover child benefit from taxpayers who have higher incomes

Question 7

What if the tax payer has ANI over £60000?

Answer 7

Child beneift income tax charge is eqial to full amount of child benefit received

Question 8

What if taxpayer has adjsuted net income between £50000 and £60000?

Answer 8

Charge is 1% of child benefit amount for each £100 of ANI in excess of £50000

Question 9

What if both partners have ANI in excess of £50000?

Answer 9

Partner with higher ANI is liable for the charge