Chap 10 Flashcards
what is the stamp duty rate
0.5% of purchase price of an asset
when does stamp duty apply
when a buyer buys a certified share with a sale price of more than £1000
what is stamp duty rounded to
the nearest £5
what does SDRT apply to
it is charged on dematerialized transactions, regardless of size and is not rounded
i.e. UK registered share, options on shares, UK convertible loan stock
what are the rules for Unit trusts and OEICs
there is no SDRT when the investor purchases from the fund manager but when units are surrendered the manager pays SDRT
exempt transfers for SD and SDRT
AIM and NEX shares
Gilts
Non coupon paying corporate bonds
Overseas securities
exempt recipients for SD and SDRT
recipients of gits
registered charities
LSE member firms who are not fund managers and are market makers
SDLT tax %
up to 250,000 = 0%
250,000 to 925,000 = 5%
925,000 to 1,500,000 = 10%
over 1,500,000 = 12%
how much higher are the SLDT tax % if you are not buying a main residence
3%
when does a land purchaser have to pay SDLT by
they have to completed themselves and have to pay within 30 days of tranactoin
commercial property SDLT rates
up to 150,000 = 0%
150,000 to 250,000 = 2%
above 250,000 = 5%
who pays corporation tax
Companies
what is corporation tax
19%
how is corporation tax assessed
self assessed by companies
when is corporation tax paid
9 months and 1 day after accounting period
UK resident companies corporation tax liability
on their worldwide profits
overseas company corporation tax liability
on their profits arising in the UK
what can a company’s trading losses be offset by
income and gains from same accounting period
income and gains from previous year
trading profits from the same trade in future years
what is VAT charge on
the provision of good and services in the UK
standard rate VAT
20%
reduced VAT and what it applies to
5%
energy products and services
who can reclaim VAT
only companies making taxable supplies through VAT
when do Stock brokers have to pay VAT
when providing discretionary and advisory advice
max contributions into a pension (income tax free)
£40,000
or £36,000
what is the max lifetime allowance of a pension
£1,073,100
what is an uncrystallised funds pension lump sum
25% taken from pension pot taxfree
what is the ISA allowancw
£20,000
what is the junior ISA allowance
£9000
what are the two types of offshore funds called
reporting
non reporting
what is a reporting offshore fund
fund reporting manager reports tax income to the HMRC
the dividends received are taxable to UK residents
any capital gain is taxed as capital gain
losses can be offset by gains
what is a non reporting fund
income and gains are both taxed as income
so you pay a higher tax rate
what is a life company bond
a bond offered by a life assurance company
what are the qualifying rules for a qualifying policy
at least annual premium
term to maturity of at least 10 years
premiums totaling less than £3,600
qualifying policies taxes
proceeds are non taxable
i.e. there is no further tax to be paid on any payout from the policy
non qualifying policy taxes
proceeds are tax at 20%
if there are gains when bond matures you have to pay any additional tax
basic rate = none
higher rate = further 20%
additional rate = further 25%
how long can life company bonds be tax deffered until
a chargeable event
i.e death or encashment
what is a venture capital trust
it is a closed ended fund that invests into start ups
venture capital trust tax wrapper
30% income tax relief
only if you dont liquidate your holdings within 5 years
when you dispose of the shares there is no CGT
EIS tax wrapper
30% income tax up to £1 mill investment
if held for 3 years
no CGT if held for 3 years
