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Income Tax Flashcards

(47 cards)

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1
Q

Personal representative

A

individual whom another has trusted to manage their property and money. When a person dies, executor or administrator will settle IHT affairs of the deceased

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2
Q

Chargeable/exempt
employment income

A

Chargeable

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3
Q

Chargeable/exempt
Trading income

A

Chargeable
if less than £1000 may be exempt

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4
Q

Chargeable/exempt
Property income

A

Chargeable
If less than £1000 may be exempt

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5
Q

Chargeable/exempt
savings income from loan interest/bank /building society

A

Chargeable

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6
Q

Chargeable/exempt
Dividend income

A

Chargeable

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7
Q

Chargeable/exempt
Miscellaneous income

A

Chargeable

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8
Q

Chargeable/exempt
Interest on national savings certificate

A

Exempt

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9
Q

Chargeable/exempt
ISA income

A

Exempt

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10
Q

Chargeable/exempt
Betting, lottery and premium bond income

A

Exempt

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11
Q

Chargeable/exempt
Social security benefits e.g. housing and child benefit

A

Exempt (rules)

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12
Q

Chargeable/exempt
first £7,500 of letting under rent a room

A

Exempt

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13
Q

Chargeable/exempt
Scholarships

A

Exempt

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14
Q

Chargeable/exempt
Income tax repayment interest

A

Exempt

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15
Q

Chargeable/exempt
Universal credit

A

exempt

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16
Q

Chargeable/exempt
apprenticeship bursaries paid to care leavers

A

exempt

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17
Q

Chargeable/exempt
payments made under compensation schemes (windrush)

A

Exempt

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18
Q

Income tax relief on qualifying interest payments and trading losses in some cases is

A

Higher of £50,000
25% of adjusted total income

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19
Q

Adjusted total income

Study These Flashcards
A

Total income + payroll giving - gross personal pension contributions

20
Q

Adjusted net income

Study These Flashcards
A

net income - deduct grossed up amounts of gifts aid and personal pension contributions

21
Q

Tax year runs from

Study These Flashcards
A

6 aPRIL - 5 aPRIL

22
Q

Child benefit for eldest/only child

23
Q

Child benefit for second and each other child

24
Q

Child benefit income tax charge if tax payer/partner has adjusted net income of over £50,000

Study These Flashcards
A

1% for each £100 between £50k and £60k.
Full amount if income over £60,000

25
If both partners earn more than £50k, who is liable for the tax charge in relation to the child benefit
One with higher income
26
What are devolved taxes
Devolution gives Scotland, Wales and NI forms of self government including ability to set certain tax rates separately
27
Election to carry back gift aid 1 year must be made
later of date return for previous year filed 31 January following the end of previous tax year
28
Payroll giving scheme
Donations made to charity under approved payroll giving scheme giving tax relief on the amount paid to charity
29
Amount of deduction for gift of assets to charity
MV of shares/securities at date of disposal _ incidental costs of disposal (broker fees) - consideration given in return for disposing - value of any other benefits received by the donor, or connected person
30
Qualifying shares or securities Shares / securities listed on / dealt with on (inc AIM) recognised stock exchange
Qualifying
31
Qualifying shares or securities Units in authorised unit trust
Qualifying
32
Qualifying shares or securities Shares in open-ended investment company
Qualifying
33
Qualifying shares or securities Holdings in certain foreign collective investment schemes
Qualfiying
34
Deduction for land/buildings given to chairty
= MV freehold/leasehold land or buildings given to a charity
35
Qualifying interest payments To buy plant or machinery for use in a partnership
Interest Qualifies for three years from end of tax year in which loan was taken out if part private - only proportion eligible
36
Qualifying interest payments to buy plant or machinery to use in employment purposes
Interest Qualifies for three years after the end of the tax year the loan was taken out. If part use private - proportion eligible
37
Qualifying interest payments to buy interest in close company (other than close holding company) /lending money to company for purpose of business
Qualifying if borrower holds shares AND works full time as manager or director OR have material interest in the close company (5%+ shares)
38
Close Company defintion
UK Resident company controlled by shareholder-directors OR controlled by 5 or fewer shareholders
39
Qualifying interest payments buying shares in employee0controlled company
If company Is unquoted trading company resident in UK with at least 50% voting shares held by employees
40
Qualifying interest payments to invest in partnership / contribute capital/make loan
Qualifying gif borrower is partner (not limited liability partner) relief ceases when stop being parter
41
Qualifying interest payment To buy shares in / lend money for co operative
Qualifying if borrower works for greater part of time in co op or sub
42
Qualifying interest payment To pay IHT
Paid by personal representative qualifies for 12 months
43
Qualifying interest payment to replace loans to buy interest in close company/employee controlled/invest in partnership/buyshares or Land in co op or pay IHT
Qualifying
44
Where interest is allowable the deduction is ...
the amount payable on accruals basis, not the interest paid
45
Income on jointly owned property is split
50/50 unless declaration made to HMRC - notice must be sent to HMRC within 60 days of the declaration and this can't be made in respect of doing bank/building society account
46
Dividends from shares in a family company jointly owned by spouses/civil partners will be taxed
According to actual ownership
47
Marriage allowance
1260 If both are basic rate tax payer or transferor has no tax liability Recipient benefits from reduction in income tax liability at basic rate

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