9 - Direct Investments Flashcards
When can the first £5,000 of savings income c=be claimed at the starting rate of 0%?
If the savings income falls within the first £5,000 og taxable income
If a person made a gain on a Gilt, would this be taxable under CGT?
No, they are exempt
Can withholding tax paid on overseas dividends be duducted from any income tax liability?
Yes if the tax exceeds the UK tax due (no excess is repaid)
What is the amount of the dividend allowance for 20/21?
£2,000
Does income received from property letting taxed as income, count as relevant UK income for pension contributions?
No, except when it arises from furnished holiday lettings
What is the difference in the way in which furniture in a residential property is treated to furniture used in a commercial property?
There are no capital allowances for residential furniture - but there is replacement furniture relief
A certain amount of expenditure each year on the purchase of plant and machinery for use in a property lettings business is allowed.
How can a property letting loss be set against other income in the same year?
If the loss consists of capital allowances in excess of letting income and other balancing charges
What are the advantages afforded to a landlord if they provide substansive services in connection with lettings?
Greater scope for set-off losses
Obtaining tax relief on pension contributions
GCT and IHT reliefs
What reliefs can be considered when disposing of a let property?
At what rate?
Rollover relief
Business asset disposal relief
holdover relief
10% instead of 18%, 20% and 28% depending on tax band
For how many days does a holiday let have to be:
1. available for letting
2. acutally let for?
to qualify as a furnished holiday let?
- 210 days
2. 105 days
What is the limit for rent a room relief?
£7,500, reduced to £3750 per person if more than one person received rent from the property
Is interest from an offshore bank account taxable?
Yes
For which NSandI product currently on offer is the interest tax free?
Direct ISA
Is interest on corporate bonds usually paid gross or net?
Gross
Are gilts subject to capital gains tax for individuals?
No
