CH1 - Intro. to UK Tax System

Question 1

Income tax is paid for a tax year which runs from ?

Answer 1

6 April to 5 April.

Question 2

Scottish taxpayers pay Scottish income tax on their ?

Answer 2

non-savings income.

Question 3

The Welsh rates of income tax apply to the ?

Answer 3

non-savings income of Welsh taxpayers.

Question 4

Income is categorised into the following sources: ?

Answer 4

• Trading income
• Property income (UK & non-UK)
• Employment income
• Savings and investment income (interest & dividend income)
• Foreign income;
• Miscellaneous income.

Question 5

Exempt Income

Some income is exempt from income tax, such as the following: ?

Answer 5

• Interest from National Savings (NS&I) Certificates;
• Premium bond winnings;
• Income from betting & lotteries;
• Many social security benefits (eg universal credit, housing benefit, winter fuel payments);
• Income from ISAs (Individual Savings Accounts);
• Maintenance payments.
• Dividends paid on the first £200,000 of Venture Capital Trust shares acquired in a tax year.

Question 6

Exempt Income

Child benefit is not taxable, although a ?

Answer 6

high income child benefit charge applies where a recipient or their partner has adjusted net income in excess of £50,000.