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Question 1

What are the objectives of taxation

Answer 1

Manage economy
Provide public goods
Social and economic welfare
Economic stability and regulation

Question 2

What does it mean to manage the economy

Answer 2

Employment levels, inflation, balance of payments and relationships with overseas trading partners

Question 3

What are public goods

Answer 3

Goods which have zero marginal cost, one individual cannot be excluded from benefiting, all members of society will consume same amount

Question 4

What are the types of UK direct taxis

Answer 4

Income tax
Capital gains tax
Inheritance tax
Corporation tax
National insurance contributions

Question 5

What are the types of UK indirect taxes

Answer 5

VAT
Customs duties
Excise duties

Question 6

What are the tax years for individuals

Answer 6

6/4/22 - 5/4/23

Question 7

What are the tax years for companies

Answer 7

1/4/22 - 31/3/23

Question 8

What are tax years also known as

Answer 8

Fiscal years or years of assessment

Question 9

Is a UK resident taxed on worldwide income

Answer 9

Yes

Question 10

What is a non UK resident taxed on

Answer 10

UK income

Question 11

What income is exempt

Answer 11

Income from individual savings accounts
Income from national savings and investment savings certificates
Certain minor benefits given to employees
Income from scholarships
Gambling and lottery wins
Premium bond prizes
Gifts
Statutory redundancy pay

Question 12

How is tax calculated

Answer 12

According to type of income