Tax

Question 1

SDLT - freehold - Resi

Answer 1

First time buyer = 0
Up to £250k - 0%
250,000.01 - 925,000 = 5%
575,000.01 - 1.5 million = 10%
Anything over 1.5 mill = 12%

Question 2

SDLT - freehold - non resi

Answer 2

Up to £150k = 0
150k - 250k = 2%
Anything about 250k = 5%

Question 3

LTT - freehold - resi

Answer 3

Up to 225k = 0%
225k - 400k = 6%
400k - 750k = 7.5%
750k - 1.5 mill = 10%
Over 1.5 mill = 12%

Question 4

LTT - leasehold - non resi

Answer 4

Premium @ same as freehold

Rent - NPV - 3.5% off unpaid bit but must add VAT

0 - 225k = 0%
225k - 2 mill = 1%
Over 2 mill = 2%

Question 5

SDLT - leasehold - non resi

Answer 5

0 - 150k = 0
150k - 5 mill = 1%
Over 5 mill = 2%

Question 6

What rate of income tax do PRs pay

Answer 6

Dividend is 8.75% and income is 20% - no reliefs (no savings allowance, dividend allowance or personal allowance). Only informal concession that if on,y income of the estate is £500 of interest then don’t bother

Question 7

CGT for PRs

Answer 7

Distribution estate not chargeable gain but selling assets to raise money is.

PRs pay 20% normally and 28% if resi prop

Can deduct incidental costs of disposal and may deduct a proportion of the cost of valuing the deceaseds estates for probate purposes

Can use annual exemption for disposals in tax year man died and 2 years after IF admin lasts that long - currently 6,000