Indirect Investments Flashcards
(105 cards)
What are the 3 main stages to consider for tax wrappers
How the intial investment is treated
How the funds are taxed in the wrapper
How the proceeds are taxed on the investor
How many years can the carried forward allowance be used for pensions
3 years
How are the death benefits from a pension taxed before age 75
Tax free - within limits
Who claims relief from self assessment in respect of their pension contributions
Higher relief for relief at source arrangements
Pre July 1988 retirement annuity contracts
Gp/dentists who are taxed as self employed
Members of NHS pension scheme
When can a PCLS be taken
Anytime but only alongside a relevant pension
What types of pension investments trigger a tax
Residential property and tangible moveable assets
How much of can a pension fund borrow
50% of the net value of the fund
Who is eligible for an ISA
UK residents
Non UK residents who are crown employees working overseas and subject to UK tax on earnings - not their spouses
What is the minimum age for a cash ISA
16
What is the minimum age for a stocks and shares ifisa or lifetime ISA
18
What is the annual limit for a junior ISA
£4368
What is the annual limit for a lifetime ISA
£4,000 included in overall £20k limit
What is the treatment of an ISA on death
Becomes a continuing ISA of the deceased Income and gains are tax free until the earliest of Estate being administered Continuing ISA being closed Or 3 years from death
What happens when an ISA holder dies and they are married
Benefits are passed to the spouse via an additional ISA allowance
In addition to their own annual allowance
Is carry forward permitted for a child trust fund
No
What is the annual allowance for a child trust fund
£4368
Who was entitled to a child trust fund
Children born between 31/08/2002 - 01/01/11
What types are child trust funds are there
Savings accounts
Accounts that invest in shares
Stakeholder accounts
What is the tax position of CTF
Free from income and capital gains
Exempt from the rule on taxing the parent of investment income exceeds £100pa
What is a UK collective
Investment trusts, unit trusts and OEICs
What is the difference between a unit trust and an OEIC
Purchase units in a unit trust and shares in an OEIC
What is the difference between unit trust & investment trusts
Unit trusts are open ended and investment trusts are close ended
What is the UCITS directive
Undertakings for collective investments in transferable securities
Sets a common standard
Provides a single market passport
If registered with a national authority then can be marketed to other member states
What is the difference between reporting funds and non reporting funds
Reporting funds investors (UK) are subject to income tax in share of the funds income whether it is distributed or not. Profit in encashment is liable to CGT
Non reporting funds have no income tax liability if gains are not distributed but gains on disposal are calculated on the CGT principles and liable to income tax so no CgT annual exempt allowance