Chapter 27 - Misc Provisions

Question 1

What are the four types of ISA?

Answer 1

Cash
Stocks & Shares
Innovative finance
Lifetime

Question 2

How much can be invested in an ISA in 2024/25?

Answer 2

£20,000

Question 3

What is the cap on lifetime ISA’s & help to buy?

Answer 3

Lifetime - £4,000

Help to buy - £2,000

Question 4

True or false

Income from an ISA is subject to tax

Answer 4

False

ISAs are tax free

Question 5

What is a junior ISA?

Answer 5

Available for under 18s - max per annum £9,000

Question 6

What does the high income child benefit charge do?

Answer 6

Claw back child benefit where adjusted net income of either partner exceeds £60,000

Question 7

What is the high income child benefit charge worked out on?

Answer 7

1% of the child benefit for every £200 of adjusted net income in excess of £60k

e.g 8000/200 x 1%

Question 8

Where will the pre owned asset (POA) charge arise?

Answer 8

a. Where the taxpayer gives away an asset

b. The taxpayer can benefit from that asset after the gift

c. The arrangement is not a ‘gift with reservation’ for IHT

Question 9

How are chargeable event gains treated?

Answer 9

As savings income

Question 10

How are gains on non-qualifying life policies treated?

Answer 10

They are deemed to have a notional 20% tax credit