1 - Income Tax (B & C) Flashcards
B Deduction of tax C Total income and the amount on which tax is calculated
1
Q
Tax is deducted from some payments of interest and annuities before the recipient receives it. At which rate is it deducted?
A
Basic rate 20%
2
Q
If an annuity is not paid wholly out of profits or gains subject to income tax, how is tax deducted and who should be informed?
A
The payer must deduct basic rate tax of 20% and inform HMRC
3
Q
If an annuity is paid out of profits or gains that are subject to income tax, the payer can deduct and retain the tax, true or false?
A
True
4
Q
What are the tax reliefs on VCT/EIS and SEIS investments?
A
30% VCT/EIS
50% SEIS investment
