B Reliefs Flashcards
When choosing relief?
Make sure not to relieve against something less than the personal allowance
Where does carry forward relief only apply to?
Trading profit, not other income
Loss relief against total income?
Applies to the current year and the previous year
Cap on income tax relief higher or lower of?
£50000
OR
25% of person’s total income
Do personal pension contributions affect employment income?
No
When are allowances brought forward in pension relevant?
For the annual allowance charge
Calculate partnership profits?
Get balancing figure then split
Losses available to partnership?
Set off against general income
Terminal loss relief
Loss relief for a new partner?
Losses in first 4 years can be set off against general income for 3 preceding years
Are capital allowances deducted first in a partnership?
Yes
What relief isn;t available for partnerships?
Carry forward against future profits
Where is interest relief in income tax computation?
Is deducted from taxable income
What happens to capital allowances in income tax computation?
Is deducted from trading profit
What is the tax reducer?
Mortgage interest
Living accommodation in included in employment income?
Higher of annual value and rent paid
What is included for accommodation in emplo yment income?
Annual value AND rent paid
The additional benefit
Anciliary expenses
Are annual value and additional charge exempt from job related accommodation?
YES
Taxable benefits in job related accommodation?
Added to salary
Basic rate restriction and FHA?
Does not apply
Does FHA attract reliefs?
Yes
What is meant by a contrikbution i n accommodation benefit?
e.g. Neil is required to pay
Council tax and water-charges in job-related vs non-job related?
Job-related: Council tax and water charges are exempt. Not deducted
Not-job related: Council taxand water charges aren’t exempt
What is meant by assessable benefit?
Annual value + additional benefit - contributions
What figure is used as the asset transfer ?
The market value, not the original
Annual rent that’s in advance for cash basis calculation?
Multiply by 11/12
Renumeration received for director’s fees?
End of accounting period
Renumeration received for bonus voted after the end of the accounting period?
Date voted
Taxable amount or allowable expense (if engative) for use of own car?
Mileage allowance - statutory amount
If pension contributions exceed £40000 for a year?
There is no unused allowance
