Terminology

Question 1

Employment Status of;

(1) Sole Traders / Partnership
(2) Salaried members of limited liability partnership
(3) Directors of an Incorporated business, including one person business

Answer 1

(1) Self Employed
(2) Employees
(3) Employees

Question 2

What is meant by Trading Income?

Answer 2

Net profits of unincorporated businesses, self-employed working as sole traders or in partnerships.
Not the drawings that are taxable but the net profits. *Companies separate rules and are subject to corporation tax

Question 3

What is meant by Net profit

Answer 3

Gross profits less allowable expenses and capital allowances, but before tax

Question 4

For most of the tax rules Spouse also includes……

Answer 4

Partnerships under the Civil Partnership Act 2004

Question 5

SDRT, SDLT, LBTT, LTT

Answer 5

?

Question 6

Difference between;
SAYE
ESS
SIP

Answer 6

See CGT notes

Question 7

Difference between Joint Tenants and Tenants In Common?

Answer 7

Joint Tenants own 50/50, on death ownership automatically passes to the joint owner which is still a transfer for IHT purposes
Tenants In Common pre-agreed %

Question 8

AIM Shares

Answer 8

Alternative Investment Market