Tax Flashcards
(9 cards)
1
Q
Tax
Tax Year for Income Tax and Capital Gains Tax
1
A
6th April to 5th April
2
Q
Tax
Income Tax Annual Personal Allowance
1
A
Up to £12,570
3
Q
Tax
Income Tax Bands
3
A
Basic Rate: 12,570 - 50,270 (20%)
Higher Rate: 50,271 - 125,140 (40%)
Additional Rate: Over 125,140 (45%)
4
Q
Tax
Income Tax Allowances
2
A
Savings Interest
Dividend Income
5
Q
Tax
What are “wasting assets” in Capital Gains Tax?
1
A
Items with a predictable life of less than 50 years
6
Q
Tax
Annual Exemption for CGT
1
A
£3,000
7
Q
Tax
Stamp Duty on Share Transfers
1
A
0.5% rounded up to the nearest £5
8
Q
Tax
Process to Transfer shares
4
A
- Recipient receives Cert and STF
- Recipient sends to HMRC with payment
- HMRC return stamped STF
- Recipient submits STF & Cert to company
- Company register the transfer (Directors administer)
No stamp duty payable if 1k or less (or a gift)
9
Q
Tax
What is Output Tax and Input Tax?
2
A
Output Tax- charging VAT on your supplies
Input Tax- The VAT you pay when procuring your own goods and services
