Chapter 9 Flashcards
is insterest paid gross for cash
yes
can yiou make capital gains on cash
no
what are the allowances to offset at cash
starting rate band - taxable on svaing sincome below 5,000
what is a ns&i investment account
available to anyone aged 16 or over and can also
be opened on behalf of a child under 16
what is the minimum for an NS&I savings account
20 pounds - limit 1 million or 2 million joint
what is a direct saver account nsai
offers a higher interest rate than the investment
account
Anyone aged 16 - mimium of 1 pound - maxium savings of 2 milloin
what is a nsai income bnd
pays interest monthly - variable rate - taxed as savings icnioem
with nsai icnome binds do they need to be informed to make a witjdrawl
no
what is the minimum amount for an incoem binf and max
500 pounds minim invetsment - 1 million max
what is a nsai green savings bond
a three-year fixed-rate
savings account. The funds raised are used to help green
projects chosen by the Government
can you make a withdrawl with an nsai green savings bond
no - wiat three years
whta is nsai guarenteed incme and growth bond
e fixed rate savings
bonds that pay a fixed rate of interest
taxabkle sa savings incoem
whats the differencebetween a nsai gurnteed icoem and growth bonds than an investment bond from nsai
guranteed incoem pays fixed rsge
how is th eintrest treated in a guranteed incoem and growth biond
intrest is reinvested into the buienss
what is a nsai direct isa
direct isa - 5 april - tax free
what is a nsai premium bind
paying prizes rather than a fixed return
is capital protected in a premium bnd
yes
what is teh maxium holiding in a premoum bond
50,000
what is a fixed intrest securuity
taxable as savings
income
are individuals liable to cgt on gilts
no
do gilts pay fixed interest
yes they are classed as fixed intrest stocls
with intrest of gilts hwo does it work
can e;ect 20% to be deucted
what is a coporate bod
loan to companies
are gilts and bonds tradable on stock market
yes - and you can mkae a gain on these products
are gilts secure
yes very - issued by debt managment office
how often to giltys pay
twice a year
how do copoorate bonds differ
they ar eloans to companies - there ar egreater return - more risk - intrest is paid by a coupon yearly
how oten is a coporate biond paid
by a coupon once a year
what is a coupon
interest payment - one year on nominal value - generallly fixced unless unit linked - savings income - liable to income taax - paid by gross
when is teh final redemption date for fixed intrest scurities
one anviersary of a year - fixed date - unless a fixed income securitu
what is a warstock
dont have a end date
what is the nomainal value of a fixed interest security
100
can woodlands recieve tax advantages
yes - * Profits generated by the commercial occupation of
woodlands in the UK are exempt from income tax.
* IHT can be postponed until the trees are cut and the
timber sold, provided the woodland has been owned for
five years.
* Woodlands managed on a commercial basis are also
exempt from CGT.
how are furnnished holiday lettings taxed
like oitehr lettinf s
what would be the tax advantages
accomodation must be furnished - let out on commerical basis - must have at least 210 days in total tax year in accomodation - should at least have 105 days out
what is rent a room relief
Rent-a-room relief is a special relief for people who let part of
their only or main residence. - max - 7,500 a year
what about letting part of teh home
the sale means - if used for letting at part of home - exmept from ctt
equities
- share - part owner - etitlement - distribuot of profits - capital grown
what ar ethe coommon features of equities
share profits via dividends
what ar ethe tax impilctaions on equities dividends
they are paid gross - but are also liable to income tax - diviedns
what is teh cgt on property
18 bais 28 higher
