BL - Tax - Individual Flashcards
How much is the personal savings allowance?
- Basic rate taxpayers = 0% for first £1,000
- Higher rate taxpayers = 0% for first £500
- Additional rate taxpayers - no personal savings allowance
How much is the dividend rate allowance?
First £1,000 is tax free for ALL tax payers
How are benefits in kind taxed?
- subject to income tax but not PAYE
What are qualifying loans for tax purposes?
- loan to buy an interest in a partnership
- loans to contribute to capital or make loans to a partnership
- loans to buy shares in a close company
- loans to buy shares in an employee-controlled company
These allow you to deduct interest from your income
How is relief given for pension scheme contributions?
- An amount equivalent to the pension scheme contributions made by a taxpayer during the year are deducted from their total income for that year.
What is the personal allowance for 2024/25
£12,570.
The amount is reduced by £1 for every £2 of Net Income above £100,000
How do you calculate the reduced allowance for individuals with Net income between £100,001 and £125,140?
£12,570 - (Net Income - £100,000 / 2) = reduced allowance
What is the order of taxation for different types of income?
Non-savings
Savings
Dividends
(Never say die)
What is the basic rate limit?
£12,570 to 50,270 @ 20%
What is the higher rate limit?
2024/25
£50,270 to 125,140 @ 40%
What is the higher rate limit?
£125,140 @ 45%
What is the order of taxation of income?
- Non-savings
- Savings
- Dividends
What’s the CT rate
25% main
19% smaller (profit less than 50k)
What’s the high rate limit 2023/24?
125,140
What are the dividend rates
Basic 8.75%
Higher 33.75%
Additional 39.35
