Partnerships

Question 1

Income tax deductions

Answer 1

• interests on loans for business
• pension contributions

Question 2

Personal savings allowance

Answer 2

BR = 1k
HR = 500
AR = 0

Question 3

Business Asset disposal relief
- effect
- conditions

Answer 3

reduces rate from 24% to 18%
1. Qualifying disposal
- ST / partnership interest
- business assets
- shares

2. Employee + 5% shares + 2 years ownership

Question 4

Investors relief
- effect
- conditions

Answer 4

1. Ordinary shares
2. issued after 17 March 2016; and
3. At issue no shares listed

+ held continuously for min 3 years since issue
NOT officer or employee

Question 5

Hold over relief
- effect
- conditions

Answer 5

postpones CGT. Donor pays 0. Donee’s acquisition cost is reduced by amount of Donor’s gain.

1. Gift
2. Business asset
3. Donee agrees

Question 6

Roll-over relief

Answer 6

Postpones CGT (reduces AC of replacement by gain)

1. Purchase replacement QBA

Question 7

How to reduce corporation tax liability

Answer 7

Capital allowances = purchase plant and machinery

Question 8

How is corporation tax calculated?

Answer 8

Tax is paid on Total Taxable Profits (Income Profits and Chargeable gains)