TC

Question 1

S83 - Trading loss

Answer 1

Carry forward loss to offset against first available future trading profs of the same trade

Question 2

S64 - Trading loss

s261B

Answer 2

Offset against total income in current and/or previous tax year

s261B - against gains in CY and/or PY

Question 3

s72
s89

Answer 3

s72 - Opening year loss relief - carry back loss arising in first 4 years against total income 3 yrs (FIFO)

s89 - Terminal loss relief. Carry back loss from final 12 months 3 years same trade (LIFO)

Question 4

Trading loss cap

Answer 4

Greater of £50,000 or 25% of adjusted total income for year

£25,000 for non-active partners

Question 5

Rollover relief

Answer 5

deduct deferred gain from acquisition cost of new asset

Question 6

Holdover relief

Answer 6

Gain is frozen and comes back in to charge when the asset is sold again

Question 7

BADR

Answer 7

First £1m if gains in lifetime on disposal of qualifying assets to be charged at 10%
- must have been held at least 24 months

Question 8

Personal trading company

Answer 8

• own at least 5% ord share cap so 5% voting
• entitled to at least 5% profits for dist and dist assets on wind up
• is entitled to at least 5% of proceeds in event of sale

Question 9

Investors relief

Answer 9

10% on £10m

• New shares
• Unlisted trading company
• Issued on/after 17 march 2016
• Held for 3 years at least
• not be employee or officer of business

Question 10

Adjustment Expense for accrual to cash basis

Answer 10

Opening Debtors
Opening stock
(Opening creditors)

Question 11

Child benefit tax charge

Answer 11

60k-80k
1% received per £200 between figures

Question 12

Property income

Answer 12

Property allowance - 1000
Rent-a-room relief - 7,500
Losses - net off profit and losses in year. Rolled forward against next property profits

Question 13

Taxable benefits
Van benefits

Answer 13

£3,960 (Nil if zero-emissions)
Fuel ben for vans - £757

Question 14

Taxable benefits
Car benefits

Answer 14

List price X CO2 emissions %
Fuel ben - £27,800 X CO2 emissions %

Question 15

Taxable benefit
Loans

Answer 15

less than 10,000 pa exempt

Loan amount x 2.25% less interest paid

Question 16

Special Rate Pool - Capital allowances

Answer 16

Long life assets (more than 25 years)
more than £100,000 in a12 month ap

Integral features
Thermal insulation
Solar panels

Cars with CO2 emissions more than 50g/km

Question 17

FYA - Capital Allowances

Answer 17

First year allowance
100%
Qualifying assets (low emissions)
Never time apportion

Question 18

AIA - Capital Allowances

Answer 18

Annual Investment Allowance
£1,000,000 pa
time apportion for length of ap
use against SRP then MP
Excess gets WDA

Question 19

WDA - Capital Allowances

Answer 19

Writing Down Allowance
18% - Main Pool
6% - SRP
Time apportion for ap length

Question 20

Disposals - Capital allowances

Answer 20

Positive balance - Balancing allowance for single asset pools

Negative balance - eliminate with balancing charge

Question 21

Structures and buildings allowance - Capital Allowances

Answer 21

3% on newly qualifying expenditure

Question 22

Gift relief

Answer 22

Liability of tax passes over to recipient.
- unquoted trading shares. Quoted shares of donors personal company or asset used in trade of donor

• joint claim

Question 23

Statutory Residency Tests

Answer 23

1. Automatic non-UK tests
2. Automatic UK tests
3. Sufficient ties test

Question 24

VAT
Input/Output

Answer 24

Input VAT - Paid on purchases and can be claimed back from HMRC

Output VAT - Collected on sales and paid to HMRC

Question 25

Deemed domicile for IHT

Answer 25

1. Domiciled in UK at any time in prev 3 years 2. Resident for 15/20 prev years inc one of the last 4 TY ending with current year 3. Formerly domiciled resident

Question 26

Double tax relief - IHT

Answer 26

If no treaty exists, tax credit of lower of: 1. Overseas tax liability 2. UK IHT on asset at avg rate

Question 27

Double tax relief - Income tax

Answer 27

Lower of: - UK tax at marginal rate - Overseas tax paid

Question 28

Compulsory VAT registration

Answer 28

- Historic test: Taxable supplies in prev 12 months exceed limit - Future Prospects: Taxable supplies in next 30 days exceed limit £90,000 Registration £88,000 Deregistration

Question 30

IHT delivery of accounts dates

Answer 30

CLT - 13 months after end of month in which transfer occurred PET - 12 months after end of month in which death occurs

Question 31

IHT payment

Answer 31

Lifetime 06/04 to 30/09 - 30 April in following year Lifetime 1/10 to 05/04 - six months after end of month transfer was made Death tax - six months after end of month of death or delivery of accounts if earlier

Question 32

Indexation allowance - company gains

Answer 32

(RPI month of disposal - RPI month of exp)/RPI month of exp Round to 3 DP if not shares

Question 33

Super-deduction/full expensing allowance claim on disposal

Answer 33

Balancing charge = Lower of cost and proceeds Effect on pool = no deduction

Question 34

50% FYA claim on disposal (Company capital allowances)

Answer 34

Balancing charge = 50% (lower of cost and proceeds) Effect on pool = remaining 50% deducted from SRP before 6% WDA

Question 35

Claim on disposal where AIA/WDA was claimed

Answer 35

Balancing charge = None (unless pool negative) Effect on pool = Deduct lower of cost and proceeds from relevant pool

Question 36

s37 Corporation loss relief

Answer 36

Use against current year total profits as much as possible and then carry back 12 years if any left. May waste QCD's. Claim within 2 years

Question 37

s45A Corporation loss relief

Answer 37

Carry forward against total profits in future periods Does not have to be used in full so can utilise QCDs.

Question 38

Terminal loss relief Corporate loss relief

Answer 38

Loss in last 12 months can be used in current year and preceding 36 months on LIFO basis against total profits. Wasting QCDs.

Question 39

Non Trading loan relationship deficit

Answer 39

Current year - Total profits, partial claim Prev 12 months - Against NTRL of prev 12 months Carry forward - Future total profits, partial claim

Question 40

Property loss Corporate losses

Answer 40

Automatically offset against total profits before QCD in current year. No partial claim Excess carried forward. Partial claim

Question 41

Capital losses Corporate loss

Answer 41

Against chargeable gains in current AP. Remaining carried forwards for first available chargeable gains.

Question 42

Restriction on Corporate losses

Answer 42

£5m +(50% of excess profit over 5m)

Question 43

Class 1 primary NICs

Answer 43

Gross pay (salary, bonus, commissions, taxable vouchers) before allowable deduction Excludes taxable benefits

Question 44

Class 1A NIC

Answer 44

Employers pay on non-cash benefits at 13.8%

Question 45

Zero rated VAT on property transactions

Answer 45

Construction and sale of new res buildings

Question 46

Standard rated VAT on property transactions

Answer 46

Construction/sale of new (<3 years) commercial buildings

Question 47

Exempt VAT on property transactions

Answer 47

Lease on any building Sale of old (>3 yrs) Sale of an existing res building

Question 48

Certain other assets for Capital Goods Scheme (VAT)

Answer 48

Land and Buildings (>250,000) Aircraft, ships... (>50,000) Single computer items (>50,000)

Question 49

Adjustment periods for Capital goods scheme

Answer 49

10 years for land and buildings 5 years for other qualifying assets