Misc. Provisions Flashcards
Misc. Provisions
Who Can Open a Lifetime ISA?
UK Resident Individuals Aged 18 And Over But Under 40.
Misc. Provisions
The Maximum That Can be Invested in a Lifetime ISA is:
£4,000 Per Tax Year.
Misc. Provisions
Funds Withdrawn From a Lifetime ISA Are Penalised When:
Done so Before The Age of 60.
(Other Than to Buy a First Home)
The Bonus is Lost in Addition to a 5% Charge.
Misc. Provisions
When do Child Benefit Payments Stop?
31 August Following The Child’s 16th Birthday.
(Unless in Approved Education or Training)
Misc. Provisions
The Child Benefit Amounts For 2023/24 Are:
- £24.00 For The Eldest Child
- £15.90 For Subsequent Children
Misc. Provisions
What is The ‘High Income Child Benefit Charge’?
A Clawback of Child Benefit via The Annual Income Tax Computation.
Charged to The Household’s Highest Earner.
Misc. Provisions
Chargeable Event Gains Are Treated in The Tax Computation as:
- The ‘Top Slice’ of Income
- Carrying a Notional 20% Tax Credit
The Savings Allowance is Available.
Misc. Provisions
Partial Surrenders Avoid Income Tax Charges When:
The Cash Released Does Not Exceed 5% of The Initial Investment.
(Per Policy Year)
The 5% Applies Cumulatively.
Misc. Provisions
What Happens to Partial Surrenders Not Brought Into Charge?
Added to The Policy Gain to Give The Amount Chargeable to Income Tax.
(When The Policy Matures)
Misc. Provisions
The POA Rules Apply to Arrangements Where:
The ‘Gift With Reservation’ Rules for IHT Aren’t Applied.
(Continuous Benefit)
Misc. Provisions
The POA Charge on Chattels is Calculated as:
Value of Asset x ORI %
Less: Rents Paid to Use The Asset
Notional Income
(Non-Savings)
Misc. Provisions
A POA Charge is Avoidable if:
The Asset’s Annual Rental Value Doesn’t Exceed £5,000.
Misc. Provisions
When Must a Chattel be Revalued?
Every 5th Tax Year.
