3 Property and Investment Income Flashcards
What are other types of sources of saving income other than bank interest?
Interest from NS&I, Interest from gilt-edged securities, interest from quoted company loan stock
What type of savings interest is exempt?
ISAs and NS&I
What is the starting rate of tax for taxpayers whose savings income falls into the first X of taxable income?
0% for the first £5,000
What is the saving income nil rate band for basic rate taxpayers?
£1,000
What is the saving income nil rate band for additional rate taxpayers?
£Nil
What is the procedure to applying the appropriate rate of tax to savings income?
- Calculate income tax on non savings income
- Apply the different rates of tax a. Starting rate, b. savings nil rate band c. normal rates
- Normal rates
What is the dividend nil rate band?
£5,000
What is the dividend rate for basic rate?
7.5%
What is the dividend rate for higher rate?
32.5%
What is the dividend rate for additional rate?
38.1%
Under what conditions must an expense be deductible for rental businesses?
To be allowable, the expenses must have been incurred wholly and exclusively for the purposes of the property business.
What is a irrecoverable debt called in regards to rental property?
Impairment Loss
What type of expenditure is not allowable in rental properties?
Improvement expenditure
What is the saving income nil rate band for higher rate taxpayers?
£500
What does premium mean in relation to short leases?
A premium is a lump sum payment made by the tenant to the landlord in consideration for the granting of a lease.
