C Relief Qualifications Flashcards
Where can gift holdover relief be claimed?
On gifts of business assets
Conditions of gift holdover relief (the individual)?
DIsposal made to individual who is UK resident
Conditions of gift holdover relief (disposal is of)?
Business asset used in donor’s trade
Unquoted shares in trading company or quoted shares in a personal trading company
Where can rollover relief be used (old and new asset)
Old asset and new asset bought are both used in trade carried on by person claiming rollover relief
Where can rollover relief be used (class of assets)?
Land and buildings for purpose of trade
Fixed plant and machinery
Goodwill (individuals only)
Why is there no CGT on the chargeable asset transferred to a spouse?
As it is covered by the spouse exemption
Cuargeable business assets in gift holdover relief are?
Goodwill
Land and buildings
Plant and machinery (except cars)
Conditions for investor relief?
An unlisted trading company held continuously for three years and issued on or after 17 March 2016
Which assets qualify for BADR?
Goodwill
Freehold offices and warehouses used in a business
BADR relief acronym?
Five %
Trading company
Two years before disposal
Work there
Does investment property and investments qualify for BADR?
NO
P11D?
Expenses and benefits provided
6 July 2024
P60?
Taxable earnings, income tax deducted, tax code, etc
31 May 2024
Final real-time submission date?
19 May
Job-related accommodation in income tax computation?
EXEMPT
Does moveable plant and equipment qualify for rollover releif?
NO
When is a fixed penalty of £1000 applied? (corporation tax assessment)
When last two corporation tax is late
Should a company that largely makes zero rated supplies be included in a VAT group?
NO
Chargeable disposals of chattels cannot give rise to a CGT loss? (True/false)
False
Is output VAT payable the same in cash accounting?
YES
When asset is no longer in use for VAT?
No input VAT is claimed
When tax point for deposit is the date of payment?
No adjustment is required to output VAT
When a company is exempt from VAT?
Company cannot be registered for VAT
When will VAT default not be charged for a VAT underpayment?
Because separate disclosure of VAT underpayment was not required
Intergroup supplies in group VAT are disregarded?
YES
When can someone join the cash accounting scheme?
Up to date with VAT returns and VAT payments
How can a VAT underpayment be corrected?
Entering the amount on next VAT return
When is Making Tax Digital rules required?
When registered for VAT
Does partnership have to absorb VAT?
YES
What can flat rate scheme be used with?
The annual accounting scheme
What doesn’t qualify for SBA?
Cost of land
Planning permission
Fees
Stamp taxes
Residential property
Are pension contributions included in earnings for Class 4 NIC claculations?
NO
If Samwell spends 60 days in the UK when he was previously a resident, how many ties does he have?
Two ties
Partnership profits and liability?
Each partner is liable only for their own share of partnership profits.
A partner who has a trading loss for a tax year can choose whichever form of loss relief best suits his individual circumstances? (True or False)
True, they can choose which loss relief suits them best
Payment of corporation tax which are not large companies?
Nine months and one day after the end of the chargeable accounting period
Payment of corporation tax which are large companies?
Corporation tax is paid in instalments
Payment of corporation tax which are large companies? (Quarterly instalment months)
Instalments are made months 7, 10, 13 and 16
+
Instalments are due on 14
What are augmented profits for a parent company in corporation tax?
TTP + dividends from non-group companies (less than 51%)
Lifetime tax on a CLT made between 6 April and 30 September is payable on?
30 April following the end of the tax year
When can a company use both the cash accounting and annual accounting scheme?
Its expected taxable turnover for next 12 months does not exceed $1.35m
Does cash accounting affect input VAT?
NO
When is output VAT accounted for in cash accounting?
Two months later than at present
If Richard continues to trade without registering for VAT?
They will still have to pay outstanding VAT
When can a simplified invoice be issued?
VAT inclusive amount of £250
When is the basic tax point?
The date when the service is completed
When are BADR and gift holdover relief both available?
Disposal of the interest in the partnership but not on the shares
What happens to individuals who submit a tax return on time?
They are able to have their tax payable calculated by HMRC
Are trading loss brought included in a claim for current group relief?
NO
When is a sub-subsidiary included in a chargeable gains group?
If ultimate parent company’s effective interest is over 50%
Is b/f trading loss included in current period group relief?
NO
How is PAYE on employee bonuses calculated?
Using income tax rates
Whys is carry forward more preferable than current year?
For cash flow reasons
Can an individual AEA be transferred to a partner?
NO
Are partnerships entitled to same loss relief as sole traders?
YES
When questions ays £0.5 ordinary shares?
£0.50 is factored in when calculating the chargeable gain
Disposal of shares relief?
BADR
Dividends received treatment in corporation tax?
Exempt
Is loan interest receivable part of trading profits?
NO
Is building society interest part of trading profits?
NO
Interest payable treatment in corporation tax working depends on?
Whether it is for trade or non-trade purposes. If for trading purposes, it is deductible on a profit. Is a 0 on a loss (IN TRADING PROFIT WORKING)
Non-trade is deducted in other income
Who is provided with form P60?
Employees
Does real-time PAYE information need to be filed electroncially?
YES
Goodwill for rollover relief individual vs company?
Goodwill can be included for individual, but not for company
Employer’s duties?
Deduct correct income tax and NIC
Pay tax/NIC on due date which is 14 days from end of tax month
What must employer do when an employee leaves?
Fill out a P45
Standard benefit for private use of a company van?
£3960
When private fuel is privided for a company van?
£757 additional charge
Advantage of early trade loss relief?
Enables losses to be carried back for three years and so gives relief earlier than other loss reliefs
When must early trade loss relief be made?
By 31 January 2026 on a FIFO basis
Claim for terminal relief must be made by?
5 April 2028
Terminal relief timeframe?
Allows relief against trading profits on the three preceding years on a LIFO basis
What does the first tier tribunal deal with?
Straightforward cases
What is required for a VAT invoice to be valid?
Date of invoice
Total invoice price excluding VAT
Mortgage interest in a corporation tax working included in property business income for corporations?
NO
When is tax on CLTS made between 6 April and 30 September are due?
30 April
Why is it beneficial for all eligible compabies in a chargeable gains group to transfer assets to one company prior to disposal outside the group?
Transfers don’t give rise to any chargeable gain or capital loss
In corporation tax working, what figure is taxed at 25%?
The TTP (which is the figure that includes dividends from non-associated companies)
Automatic non-UK resident (16)
16 days
