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Flashcards in Taxation Exam Deck (71)
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1

Tax adjusted profit

operating profit
add disallowed expenditure
less non trading income
Capital allowance
TTP

2

Disallowed expenditure

Drawings, Cap Exp, Depreciation, Legal fees, Repairs to new, Motor, Telephone, Bad Debt provisions, GAD, Trading stock (20/80)

3

Non trading Income

Dividends, Receivables, Sale of assets, Interest, Lease premium

4

Lease premium calculations

2% * (years - 1) * lease

5

Main pool wda

18%

6

special rate pool wda

8%

7

annual investment allowance

first 200,000 is exempt

8

cars > 130

special rate pool

9

cars < 75

additions

10

first year allowance

100% on cars < 75 and unused cars and machinery

11

plant and machinery

office equipment, and furniture

12

trading stock

* 20/80

13

corporation tax rates

15-16 : 20%
17-19 : 19%
20 onwards : 17%

14

Potentially Exempt Transfer

a lifetime transfer made to individual, bereaved minor, disabled person. Aren't charger to IHT but charged if death occurs within 7 years.

15

Chargeable Life Transfer

chargeable on gross value of transfer. first 325000 is 0% excess is 20%. must be grossed up if the transferor pays tax.

16

Annual Exemption

occurs after all other exemptions claimed, first £3000 in any tax year. can be reused from previous ONE tax year.

17

Marriage Exemption

£5000 from parent
£2500 from ancestor / bride & groom
£1000 otherwise

18

Small Gift Exemption

£250 or less

19

Taper relief

3yrs < 0%
3-4 20%
4-5 40%
5-6 60%
6-7 80%

20

main residence nil rate band

lower of property value or 100,000 - anything over is 40%

21

shares given to spouses

are exempt from CGT

22

chattels < 600

are exempt from CGT

23

chattels chargeable gains

are lower of sales - cost OR 5/3 (sales-6000)

24

gifted shares sales proceeds

lower + 0.5 (higher - lower)

25

cost of shares

price of shares * shares sold/shares owned

26

PPR

whole gain * length of residence/length of ownership

27

letting relief is

40,000

28

PPR working uk

is 4 years allowed, anymore and only last 18 months count

29

PPR working abroad

any length is allowed

30

part disposal

purchase * sales / sales + MV of unsold