Chapter 9

Question 1

is insterest paid gross for cash

Answer 1

yes

Question 2

can yiou make capital gains on cash

Answer 2

no

Question 3

what are the allowances to offset at cash

Answer 3

starting rate band - taxable on svaing sincome below 5,000

Question 4

what is a ns&i investment account

Answer 4

available to anyone aged 16 or over and can also
be opened on behalf of a child under 16

Question 5

what is the minimum for an NS&I savings account

Answer 5

20 pounds - limit 1 million or 2 million joint

Question 6

what is a direct saver account nsai

Answer 6

offers a higher interest rate than the investment
account

Anyone aged 16 - mimium of 1 pound - maxium savings of 2 milloin

Question 7

what is a nsai income bnd

Answer 7

pays interest monthly - variable rate - taxed as savings icnioem

Question 8

with nsai icnome binds do they need to be informed to make a witjdrawl

Answer 8

no

Question 9

what is the minimum amount for an incoem binf and max

Answer 9

500 pounds minim invetsment - 1 million max

Question 10

what is a nsai green savings bond

Answer 10

a three-year fixed-rate
savings account. The funds raised are used to help green
projects chosen by the Government

Question 11

can you make a withdrawl with an nsai green savings bond

Answer 11

no - wiat three years

Question 12

whta is nsai guarenteed incme and growth bond

Answer 12

e fixed rate savings
bonds that pay a fixed rate of interest
taxabkle sa savings incoem

Question 13

whats the differencebetween a nsai gurnteed icoem and growth bonds than an investment bond from nsai

Answer 13

guranteed incoem pays fixed rsge

Question 14

how is th eintrest treated in a guranteed incoem and growth biond

Answer 14

intrest is reinvested into the buienss

Question 15

what is a nsai direct isa

Answer 15

direct isa - 5 april - tax free

Question 16

what is a nsai premium bind

Answer 16

paying prizes rather than a fixed return

Question 17

is capital protected in a premium bnd

Answer 17

yes

Question 18

what is teh maxium holiding in a premoum bond

Answer 18

50,000

Question 19

what is a fixed intrest securuity

Answer 19

taxable as savings
income

Question 20

are individuals liable to cgt on gilts

Answer 20

no

Question 21

do gilts pay fixed interest

Answer 21

yes they are classed as fixed intrest stocls

Question 22

with intrest of gilts hwo does it work

Answer 22

can e;ect 20% to be deucted

Question 23

what is a coporate bod

Answer 23

loan to companies

Question 24

are gilts and bonds tradable on stock market

Answer 24

yes - and you can mkae a gain on these products

Question 25

are gilts secure

Answer 25

yes very - issued by debt managment office

Question 26

how often to giltys pay

Answer 26

twice a year

Question 27

how do copoorate bonds differ

Answer 27

they ar eloans to companies - there ar egreater return - more risk - intrest is paid by a coupon yearly

Question 28

how oten is a coporate biond paid

Answer 28

by a coupon once a year

Question 29

what is a coupon

Answer 29

interest payment - one year on nominal value - generallly fixced unless unit linked - savings income - liable to income taax - paid by gross

Question 30

when is teh final redemption date for fixed intrest scurities

Answer 30

one anviersary of a year - fixed date - unless a fixed income securitu

Question 31

what is a warstock

Answer 31

dont have a end date

Question 32

what is the nomainal value of a fixed interest security

Answer 32

100

Question 33

can woodlands recieve tax advantages

Answer 33

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.

Question 34

how are furnnished holiday lettings taxed

Answer 34

like oitehr lettinf s

Question 35

what would be the tax advantages

Answer 35

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

Question 36

what is rent a room relief

Answer 36

Rent-a-room relief is a special relief for people who let part of their only or main residence. - max - 7,500 a year

Question 37

what about letting part of teh home

Answer 37

the sale means - if used for letting at part of home - exmept from ctt

Question 38

equities

Answer 38

- share - part owner - etitlement - distribuot of profits - capital grown

Question 39

what ar ethe coommon features of equities

Answer 39

share profits via dividends

Question 40

what ar ethe tax impilctaions on equities dividends

Answer 40

they are paid gross - but are also liable to income tax - diviedns

Question 41

what is teh cgt on property

Answer 41

18 bais 28 higher