6. Taxation of Individuals

Question 1

What is meant by Domicile

Answer 1

A persons domicile is the country that is their permanent home

Question 2

A personal allowance is only available to?

Answer 2

Basic rate & high rate tax payers

Question 3

What are capital gains?

Answer 3

Tax on profits from the disposal of an asset

Question 4

What is the CGT for basic and high rate tax payers

Answer 4

Basic rate - 10%
Higher rate - 20%

Question 5

Gains from 2nd property/BTL are taxed at

Answer 5

Basic rate - 18%
Higher rate - 28%

Question 6

What is IHT?

Answer 6

Tax payable on someone’s estate when they die

Question 7

What is the Nil Rate Band (NRB)

Answer 7

Tax relief on IHT which is: £325k

Question 8

What is the Residential Nil Rate Band (RNRB)

Answer 8

An extra tax relief on IHT of: £175k

Question 9

What is stamp duty reserve tax (SDRT)

Answer 9

Tax charged on the transfer of UK registered shares.

Currently 0.5%

Question 10

When is IHT due after someone dies

Answer 10

6 months after the end of the month they died