B Reliefs

Question 1

When choosing relief?

Answer 1

Make sure not to relieve against something less than the personal allowance

Question 2

Where does carry forward relief only apply to?

Answer 2

Trading profit, not other income

Question 3

Loss relief against total income?

Answer 3

Applies to the current year and the previous year

Question 4

Cap on income tax relief higher or lower of?

Answer 4

£50000
OR
25% of person’s total income

Question 5

Do personal pension contributions affect employment income?

Answer 5

No

Question 6

When are allowances brought forward in pension relevant?

Answer 6

For the annual allowance charge

Question 7

Calculate partnership profits?

Answer 7

Get balancing figure then split

Question 8

Losses available to partnership?

Answer 8

Set off against general income
Terminal loss relief

Question 9

Loss relief for a new partner?

Answer 9

Losses in first 4 years can be set off against general income for 3 preceding years

Question 10

Are capital allowances deducted first in a partnership?

Answer 10

Yes

Question 11

What relief isn;t available for partnerships?

Answer 11

Carry forward against future profits

Question 12

Where is interest relief in income tax computation?

Answer 12

Is deducted from taxable income

Question 13

What happens to capital allowances in income tax computation?

Answer 13

Is deducted from trading profit

Question 14

What is the tax reducer?

Answer 14

Mortgage interest

Question 15

Living accommodation in included in employment income?

Answer 15

Higher of annual value and rent paid

Question 16

What is included for accommodation in emplo yment income?

Answer 16

Annual value AND rent paid

The additional benefit

Anciliary expenses

Question 17

Are annual value and additional charge exempt from job related accommodation?

Answer 17

YES

Question 18

Taxable benefits in job related accommodation?

Answer 18

Added to salary

Question 19

Basic rate restriction and FHA?

Answer 19

Does not apply

Question 20

Does FHA attract reliefs?

Answer 20

Yes

Question 21

What is meant by a contrikbution i n accommodation benefit?

Answer 21

e.g. Neil is required to pay

Question 22

Council tax and water-charges in job-related vs non-job related?

Answer 22

Job-related: Council tax and water charges are exempt. Not deducted

Not-job related: Council taxand water charges aren’t exempt

Question 23

What is meant by assessable benefit?

Answer 23

Annual value + additional benefit - contributions

Question 24

What figure is used as the asset transfer ?

Answer 24

The market value, not the original

Question 25

Annual rent that’s in advance for cash basis calculation?

Answer 25

Multiply by 11/12

Question 26

Renumeration received for director’s fees?

Answer 26

End of accounting period

Question 27

Renumeration received for bonus voted after the end of the accounting period?

Answer 27

Date voted

Question 28

Taxable amount or allowable expense (if engative) for use of own car?

Answer 28

Mileage allowance - statutory amount

Question 29

If pension contributions exceed £40000 for a year?

Answer 29

There is no unused allowance