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R03 - Chapter 1 > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

is insterest paid gross for cash

A

yes

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2
Q

can yiou make capital gains on cash

A

no

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3
Q

what are the allowances to offset at cash

A

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

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4
Q

what is a ns&i investment account

A

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

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5
Q

what is the minimum for an NS&I savings account

A

20 pounds - limit 1 million or 2 million joint

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6
Q

what is a direct saver account nsai

A

offers a higher interest rate than the investment
account

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

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7
Q

what is a nsai income bnd

A

pays interest monthly - variable rate - taxed as savings icnioem

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8
Q

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

A

no

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9
Q

what is the minimum amount for an incoem binf and max

A

500 pounds minim invetsment - 1 million max

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10
Q

what is a nsai green savings bond

A

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

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11
Q

can you make a withdrawl with an nsai green savings bond

A

no - wiat three years

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12
Q

whta is nsai guarenteed incme and growth bond

A

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

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13
Q

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

A

guranteed incoem pays fixed rsge

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14
Q

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

A

intrest is reinvested into the buienss

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15
Q

what is a nsai direct isa

A

direct isa - 5 april - tax free

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16
Q

what is a nsai premium bind

A

paying prizes rather than a fixed return

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17
Q

is capital protected in a premium bnd

A

yes

18
Q

what is teh maxium holiding in a premoum bond

A

50,000

19
Q

what is a fixed intrest securuity

A

taxable as savings
income

20
Q

are individuals liable to cgt on gilts

A

no

21
Q

do gilts pay fixed interest

A

yes they are classed as fixed intrest stocls

22
Q

with intrest of gilts hwo does it work

A

can e;ect 20% to be deucted

23
Q

what is a coporate bod

A

loan to companies

24
Q

are gilts and bonds tradable on stock market

A

yes - and you can mkae a gain on these products

25
Q

are gilts secure

A

yes very - issued by debt managment office

26
Q

how often to giltys pay

A

twice a year

27
Q

how do copoorate bonds differ

A

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

28
Q

how oten is a coporate biond paid

A

by a coupon once a year

29
Q

what is a coupon

A

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

30
Q

when is teh final redemption date for fixed intrest scurities

A

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

31
Q

what is a warstock

A

dont have a end date

32
Q

what is the nomainal value of a fixed interest security

A

100

33
Q

can woodlands recieve tax advantages

A

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.

34
Q

how are furnnished holiday lettings taxed

A

like oitehr lettinf s

35
Q

what would be the tax advantages

A

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

36
Q

what is rent a room relief

A

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

37
Q

what about letting part of teh home

A

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

38
Q

equities

A
  • share - part owner - etitlement - distribuot of profits - capital grown
39
Q

what ar ethe coommon features of equities

A

share profits via dividends

40
Q

what ar ethe tax impilctaions on equities dividends

A

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

41
Q

what is teh cgt on property

A

18 bais 28 higher

R03 - Chapter 1 (13 decks)

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