C Relief Qualifications Flashcards
1
Q
Where can gift holdover relief be claimed?
A
On gifts of business assets
2
Q
Conditions of gift holdover relief (the individual)?
A
DIsposal made to individual who is UK resident
3
Q
Conditions of gift holdover relief (disposal is of)?
A
Business asset used in donor’s trade
Unquoted shares in trading company or quoted shares in a personal trading company
4
Q
Where can rollover relief be used (old and new asset)
A
Old asset and new asset bought are both used in trade carried on by person claiming rollover relief
5
Q
Where can rollover relief be used (class of assets)?
A
Land and buildings for purpose of trade
Fixed plant and machinery
Goodwill (individuals only)
6
Q
Why is there no CGT on the chargeable asset transferred to a spouse?
A
As it is covered by the spouse exemption
7
Q
Cuargeable business assets in gift holdover relief are?
A
Goodwill
Land and buildings
Plant and machinery (except cars)
8
Q
Conditions for investor relief?
A
An unlisted trading company held continuously for three years and issued on or after 17 March 2016
9
Q
Which assets qualify for BADR?
A
Goodwill
Freehold offices and warehouses used in a business
10
Q
BADR relief acronym?
A
Five %
Trading company
Two years before disposal
Work there
11
Q
Does investment property and investments qualify for BADR?
A
NO
12
Q
P11D?
A
Expenses and benefits provided
6 July 2024
13
Q
P60?
A
Taxable earnings, income tax deducted, tax code, etc
31 May 2024
14
Q
Final real-time submission date?
A
19 May
15
Q
Job-related accommodation in income tax computation?
A
EXEMPT
16
Q
Does moveable plant and equipment qualify for rollover releif?
A
NO
17
Q
When is a fixed penalty of £1000 applied? (corporation tax assessment)
A
When last two corporation tax is late
18
Q
Should a company that largely makes zero rated supplies be included in a VAT group?
A
NO
19
Q
Chargeable disposals of chattels cannot give rise to a CGT loss? (True/false)
A
False
20
Q
Is output VAT payable the same in cash accounting?
A
YES
21
Q
When asset is no longer in use for VAT?
A
No input VAT is claimed
22
Q
When tax point for deposit is the date of payment?
A
No adjustment is required to output VAT
23
Q
When a company is exempt from VAT?
A
Company cannot be registered for VAT
24
Q
When will VAT default not be charged for a VAT underpayment?
A
Because separate disclosure of VAT underpayment was not required
25
Intergroup supplies in group VAT are disregarded?
YES
26
When can someone join the cash accounting scheme?
Up to date with VAT returns and VAT payments
27
How can a VAT underpayment be corrected?
Entering the amount on next VAT return
28
When is Making Tax Digital rules required?
When registered for VAT
29
Does partnership have to absorb VAT?
YES
30
What can flat rate scheme be used with?
The annual accounting scheme
31
What doesn't qualify for SBA?
Cost of land
Planning permission
Fees
Stamp taxes
Residential property
32
Are pension contributions included in earnings for Class 4 NIC claculations?
NO
33
If Samwell spends 60 days in the UK when he was previously a resident, how many ties does he have?
Two ties
34
Partnership profits and liability?
Each partner is liable only for their own share of partnership profits.
35
A partner who has a trading loss for a tax year can choose whichever form of loss relief best suits his individual circumstances? (True or False)
True, they can choose which loss relief suits them best
36
Payment of corporation tax which are not large companies?
Nine months and one day after the end of the chargeable accounting period
37
Payment of corporation tax which are large companies?
Corporation tax is paid in instalments
38
Payment of corporation tax which are large companies? (Quarterly instalment months)
Instalments are made months 7, 10, 13 and 16
+
Instalments are due on 14
39
What are augmented profits for a parent company in corporation tax?
TTP + dividends from non-group companies (less than 51%)
40
Lifetime tax on a CLT made between 6 April and 30 September is payable on?
30 April following the end of the tax year
41
When can a company use both the cash accounting and annual accounting scheme?
Its expected taxable turnover for next 12 months does not exceed $1.35m
42
Does cash accounting affect input VAT?
NO
43
When is output VAT accounted for in cash accounting?
Two months later than at present
44
If Richard continues to trade without registering for VAT?
They will still have to pay outstanding VAT
45
When can a simplified invoice be issued?
VAT inclusive amount of £250
46
When is the basic tax point?
The date when the service is completed
47
When are BADR and gift holdover relief both available?
Disposal of the interest in the partnership but not on the shares
48
What happens to individuals who submit a tax return on time?
They are able to have their tax payable calculated by HMRC
49
Are trading loss brought included in a claim for current group relief?
NO
50
When is a sub-subsidiary included in a chargeable gains group?
If ultimate parent company's effective interest is over 50%
51
Is b/f trading loss included in current period group relief?
NO
52
How is PAYE on employee bonuses calculated?
Using income tax rates
53
Whys is carry forward more preferable than current year?
For cash flow reasons
54
Can an individual AEA be transferred to a partner?
NO
55
Are partnerships entitled to same loss relief as sole traders?
YES
56
When questions ays £0.5 ordinary shares?
£0.50 is factored in when calculating the chargeable gain
57
Disposal of shares relief?
BADR
58
Dividends received treatment in corporation tax?
Exempt
59
Is loan interest receivable part of trading profits?
NO
60
Is building society interest part of trading profits?
NO
61
Interest payable treatment in corporation tax working depends on?
Whether it is for trade or non-trade purposes. If for trading purposes, it is deductible on a profit. Is a 0 on a loss (IN TRADING PROFIT WORKING)
Non-trade is deducted in other income
62
Who is provided with form P60?
Employees
63
Does real-time PAYE information need to be filed electroncially?
YES
64
Goodwill for rollover relief individual vs company?
Goodwill can be included for individual, but not for company
65
Employer's duties?
Deduct correct income tax and NIC
Pay tax/NIC on due date which is 14 days from end of tax month
66
What must employer do when an employee leaves?
Fill out a P45
67
Standard benefit for private use of a company van?
£3960
68
When private fuel is privided for a company van?
£757 additional charge
69
Advantage of early trade loss relief?
Enables losses to be carried back for three years and so gives relief earlier than other loss reliefs
70
When must early trade loss relief be made?
By 31 January 2026 on a FIFO basis
71
Claim for terminal relief must be made by?
5 April 2028
72
Terminal relief timeframe?
Allows relief against trading profits on the three preceding years on a LIFO basis
73
What does the first tier tribunal deal with?
Straightforward cases
74
What is required for a VAT invoice to be valid?
Date of invoice
Total invoice price excluding VAT
75
Mortgage interest in a corporation tax working included in property business income for corporations?
NO
76
When is tax on CLTS made between 6 April and 30 September are due?
30 April
77
Why is it beneficial for all eligible compabies in a chargeable gains group to transfer assets to one company prior to disposal outside the group?
Transfers don't give rise to any chargeable gain or capital loss
78
In corporation tax working, what figure is taxed at 25%?
The TTP (which is the figure that includes dividends from non-associated companies)
79
Automatic non-UK resident (16)
16 days
80
Automatic non-UK resident (45)
45 days and not previous resident
81
Automatic non-UK resident (91)
91 days and works full time overseas
82
Automatic UK resident (183)
At least 183 days in UK
83
Automatic UK resident (home)
Only home is in UK
84
Automatic UK resident (full-time)
Works full time in UK
85
Should name and address of customer be included on a detailed invoice?
Yes
86
Up to 15 days? (VAT)
No fixed penalty or daily penalty
87
When 4 VAT returns have been submitted late?
£200 fixed penalty is charged and continues to be charged
88
Is cash a chargeable disposal?
NO
89
Can AEA be transferred between people?
NO, unless higher rate person is transferring to basic rate
90
What VAT is charged on exported goods?
Input VAT
91
Is mileage allowance included in Class 1 NIC?
YES
92
Are false ceilings part of capital allowances?
NO
93
Is site clearance and demolition part of capital allowances?
NO
94
Are sewerage systems part of capital allowances?
NO
95
Is a balancing charge positive or negative?
Negative. Added to trading profit
96
Is a balancing allowance positive or negative?
Positive. Deducted from trading profit
97
What is meant by amount of premium assessed?
Premium received - 2% calculation
Divided by number of years to get the amount deductible
98
When is there no rollover relief?
Proceeds not reinvested are greater than the chamrgeable gain.
99
Small pool allowance?
Less than £1000
100
Where does the small gifts exemptions only apply?
To lifetime transfers
101
Can chargeable loss for shares go below 0?
NO
102
Chargeable gains and current period group relief difference in profit and loss?
Profit: Chargeable gains added
Loss: Chargeable gains are 0
103
Is a legacy to a friend included in the IHT calculation for a death estate?
No
104
When the tax point for the deposit is the date of payment?
No adjustment is required to the output VAT figure. This would have been included in output VAT
105
When VAT is a negative figure?
It is recoverable
106
If VAT sales are exempt?
No VAT is charged
107
If a customer pays for services before the basic tax point? When is the payment date?
The tax point
108
Do employer contributions count towards annual allowance?
No
109
What happens when tax-relievable pension contributions exceed annual allowance?
There is a charge to income tax
110
Implications for when a property is not expected to increase in value in the near future?
There is no inheritance tax benefit in making a lifetime gift
111
When to choose a IHT over CGT in a transfer?
As a transfer of IHT on death is an exempt disposal
112
Do pension contributions affect NIC?
NO
113
Who is responsible for paying tax on a cash gift to daughter?
The daughter
114
Who is responsible for paying a gift to property to a trust?
The trustees
115
Who is responsible for paying the death estate?
The personal representitves
116
Is mileage allowance time apportioned?
NO
117
Are dividends included in corporation tax working?
NO
118
When Percy survives for seven years (effect on inheritance tax liability)?
There is no additional inerhitance tax liability
119
How long can unused annual allowances be carried forward for?
Up to 3 years
120
When calculation is a savings calculation?
Use the simple calculation, don't do a fuil computation
121
An import with no postponed accounting?
Input VAT is paid to HMRC
122
Does company need to provide up-to-date payments to qualify for annual accounting scheme?
YES
123
Can voluntary regristration allow partnership to recover VAT on its purchases?
NO
124
Where payment is received before the basic tax point?
The payment received date becomes the actual tax point
125
Benefit of VAT payments on account being based on previous year's liability?
Improves budgeting and cash flow if business is expanding
126
When payment is received before the basic tax point?
Payment date becomes the tax point. Tax point is when service is completed
127
When is the basic tax point?
When service is completed
128
When can a less detailed invoice be issued?
When customer requests a VAT invoice
129
Does car benefit have NIC?
NO
130
How to calculate net income?
Salary - income tax liability - NIC
131
Is CGT charged on an inter-spouse transfer on a chargeable asset?
NO
132
When will HMRC notify about a compliance check?
Within 12 months of the actual filing date
133
Are there NICs on dividends?
NO
134
Consequence of VAT invoice not being issued within 14 days of a basic tax point?
VAT payable cannot be reduced
135
Is fuel part of Class 1A?
Yes
135
Is a company car part of Class 1A?
Yes
136
Why make gifts as early as possible?
PETs aren't likely to become chargeable and CLTs only get 20% lifetime tax
137
Disadvantage of lifetime giving (transfer)?
Transfer shortly before death unlikely to achieve IHT saving. Should use CGT instead
138
Disadvantage of lifetime giving (right to use)?
Donor loses the right to use the asset, and any income derived from the asset
139
Why is it worth delaying the sale of an asset if it falls into the next tax year (CGT)?
So another AEA will be available
140
Does delaying the sale of an asset delay the CGT payable?
Yes, by a full year
141
When there are two corporation tax returns in a 15 month period?
They must be filed on the same day
142
Is the hire of office equipment treated as a business service or goods in VAT?
Business service
143
When is voluntary registration beneficial in terms of zero-rated supplies?
If he only makes zero-rated supplies and has input VAT to recover
144
Are all employers entitled to claim annual employment allowance?
No, as those who exceed £100000 aren't eligible
145
Can a company choose to claim HMRC approved mileage rates instead of capital allowances?
FUCKING NO
146
When inheritance tax question says residence nil rate band? (potnetial way it can be restricted)
A private residence could be used to restrict the nil rate band
147
Flat rate scheme join then leave?
Exclude then include
148
When tax point for deposit is date of payment (VAT)?
No adjustment is required to the output VAT figure
149
If there's already a gain that uses the AEA in a tax year?
May be better to delay making another gain until the next tax year
150
Why is it better to make a gain early in tax year for CGT?
It has longest gap between receiving proceeds and tax due
151
What is meant by deemed proceeds in an after spouse transfer in CGT?
The first cost figure
152
Why skip a generation for IHT?
This avoids a double charge for IHT
153
Why make gifts early in life (seven years)?
As it is likely donor will survive seven years after making it, thereby avoiding death tax on transfer.
154
Why make gifts early in life (three years)?
Taper relief can reduce the IHT liability
155
How to take advantage of RNRB?
Donor should consider making a will that leaves main residnce to direct descendants
156
What should happen with cash and shares in IHT?
Be given to other family members such as brothers and sisters
157
If Percy sold shares in Pergy Ltd to himself and gifted cash proceeds to Pudsey. What are the implications?
BADR would have been available
Cash gift would not have been a chargeable disposal
158
WHich figures can be included in a CGT saving?
Tax saved due to part of gain being taxed at basic rate instead of higher rate
159
Is death needed for RNRB?
YES
160
Payment on account for annual accounting figure used?
10% of previous year VAT liability
161
How to calculate cost of remaining four hectares sold?
Total cost of ten hectares - cost of six hectares already sold
162
Are quoted shares held in an ISA exempt in CGT?
YES
163
Why will a persinal pension give 20% tax relief?
She will contribute 80% of the £20000 and the goverment will co
ntribute the remaining 20%
164
Is it possible to carry forward a terminal loss relief?
NO
165
Which NIC applies to taxable benefits?
Class 1A
166
If bonus was paid after the period end?
It is disallowed
167
When is a bonus recorded?
When Percy is fucknig entitled to it
168
Charitable gift aid doantion is used to?
Extend the BRB
169
If question says van in employment income?
Use £3960 as the figure
170
Pre-trading advertising expenditure treatment?
Deducted
171
What is Class 1 NIC only relevant for?
Earnings only
172
When are improvements included in a property for income tax?
If incurred prior to start of year
173
Repairs not covered by insurance allowable or disallowable?
Allowable
174
Gifts to customers >£50
Disallowed
175
Advertising expenditure treatment?
Allowable
176
Non-trade loan interest receivable added or subtracted?
Added
177
Non-trade loan interest payable added or subtracted?
Deducted
178
legal fees in connection with a grant of short new lease?
Disallowable
179
Required to work overseas by employer and PRR?
All deemed occupation
180
Required to work away from home (not abroad) and PRR?
Deemed occupation doesn't exceed four years
181
If whole of group gain is transferred, where will it show?
In sub's computation
182
If parent transfers only their capital gain in the group?
It will show in the parent's computation
183
When is a group claim made?
Two years after the end of the accounting period
184
What happens to personal allowance when trading loss is carried back?
It is wasted
185
Which loss relief is not available to a partner when they leave the partnership?
Carry forward for set off against future profits
186
What happens when credit is given to customers in cash accounting?
Output VAT could be accounted for later than at present (2 months later)
187
Input VAT and cash accounting?
Input VAT is not affected as it is based on a cash basis
188
Advantage of annual accounting scheme (overtime)?
Save overtime costs incurred in meeting filing requirements
189
Pre-trading expenditure incurred less than 7 years?
Allowable
190
Does an inter-spouse transfer cause CGT?
No as it is a no gain/no loss disposal
191
How is a child benefit charge collected?
Through the self-assessment system
192
What can the gross amount of pension do?
Extend the basic rate tax band
193
When someone isn't a member of a pension scheme prior to 2023-24?
Annual allowances for 2020-21, 2021-22 and 2022-23 are not available
194
Forms of loss relief for a company?
Current period
Carry back
Carry forward
195
Advantage of annual accounting?
Only one VAT return each year
Manages cash flow more accurately
196
Disadvantage of annual accounting?
Bad if business is reducing turnover
More monitoring of taxable supplies
197
When can trading loss be surrendered in a group?
75% group relief
