Income Tax Flashcards Preview

AF1 - Tax & Trusts > Income Tax > Flashcards

Flashcards in Income Tax Deck (13):
1

Types of Non- Savings Income

Earnings, Bonuses, Profits, Commission, Pension, Rental Income from a B2L, FHL, P11D benefits including cars

2

Types of savings income

Interest, fixed interest securities - gilts, corporate bonds, savings element from a PLA, PIBs PSBs

3

Personal Allowance

Personal allowance is lost at £123,700. It is reduced by £1 for every £2 over

4

Order of Income

1) Non-Savings
2) Savings
3) Dividends

5

Gift Aid

Gross up by 20% and extend the basic rate band

6

Adjusted Net Income (ANI)

ANI is important for personal allowance and child benefit

7

Mortgage Interest for B2L

Tax relief available on 50% with 20% tax paid in the remaining 50%

8

Starting Rate Band

This only applies to savings income and only applies to the personal allowance + £5k for non-savings Income

9

Non-Tax Payers

Non-Tax Payers have a basic rate band

10

Professional Subscriptions

Subscriptions to professional bodies is an allowable deduction as is business mileage

11

Dividend Allowance

18/19 £2000

12

Company Car Benefit - how is the calculated?

It is a % of the list price. The % is derived based on the cars CO2 emissions. The list price includes any extras less any co tribute on by the employee up to £5000. There is a 4% surcharge for diesel. The maximum is capped at 37%

13

Personal Allowance - what is it?

18/19 it is £11,850