B Reliefs (2)

Question 1

Mileage allowance which will be deducted?

Answer 1

Allowable amount - mileage allowance received

Question 2

Balancing payment?

Answer 2

Income tax liability - PAYE

Question 3

AIA and WDA?

Answer 3

Add to the total amount of capital allowances available

Question 4

Capital allowances and operating profit?

Answer 4

Is deducted

Question 5

If Edward completes a paper tax return by 31 October 2024? (What does HMRC do)?

Answer 5

HM Revenue and Customs will prepare a self-assessment tax computation on his behalf

Question 6

Is there an annual exempt amount on unquoted shares?

Answer 6

No

Question 7

Early year loss relief time period?

Answer 7

Three preceding years

Question 8

When can a security deposit become a receipt in property income?

Answer 8

When Percy is legally entitiled to retain it at the end of the tenancy (WHEN IT IS USED)

Question 9

Advantage of FHL (profit)

Answer 9

Profit counts as relevant earnings for pension contribution relief purposes

Question 10

Advantage of FHL (plant and machinery cash basis)

Answer 10

A deduction is available for the cost of these based on the amount paid

Question 11

Advantage of FHL (plant and machinery accruals basis)

Answer 11

Capital allowances are available

Question 12

Advantage of FHL (finance costs)

Answer 12

basic rate restriction for finance costs does not apply

Question 13

Advantage of FHL (capital gains)

Answer 13

FHA is a business asset that attracts rollover relief, holdover for gifts, and the busin`ess asset disposal relief rate of tax

Question 14

What is class 1A?

Answer 14

Does benefit, has 13.8% with no lower limit

Question 15

When will Class 1 NIC not be paid?

Answer 15

If it’s a corporation

Question 16

When quoted shares are transferred?

Answer 16

It reduces the personal allowance

Question 17

Calcuiate net loss of income from selling flat early?

Answer 17

Rental profits - (rental profits * tax rate %)

Question 18

What is done in a marriage transfer?

Answer 18

Deduct £1260 from who transfers the PA

Deduct £1260 * 20% from income tax liability from who receives the transfer

Question 19

How are NICs calculated?

Answer 19

Based on earnings (e.g. salary), earnings don’t include a PA deduction

Question 20

How to calculate net pay?

Answer 20

TTP - income tax liability - NIC

Question 21

Rent a room goes where in the income tax computation?

Answer 21

As income separate to property income

Question 22

Rent receivable keyword?

Answer 22

LET

Question 23

What is meant by a balancing payment?

Answer 23

Income tax liability - PAYE