Cii 22/23 mock Flashcards
What counts as a director having a material interest in a company?
- Solely (or with family)
- Owning (or controlling)
- Directly (or indirectly)
- At least 5% of capital
Think material interest has the loosest requirements
Do you get top-slicing relief on offshore bonds?
Yes
Is income tax for employees calculated before or after NICs
Before (i.e. it isn’t deductible for income tax purposes)
Is corporation tax for employees calculated before or after NICs?
After (i.e. it is deductible for corporation tax purposes)
What types of investments are liable to SD/SDRT?
- Stocks (OEICs included)
- Shares
- Unit Trusts
Heather (both mother and father are UK Domiciled) lived & worked in Mexico where she owns a flat for the last 10 years. She visits her mother for a month in the UK.
How is she classed with regards to Domicile and Residency?
Domiciled but non-resident.
I think generally if you’re initially domiciled (e.g. UK parents) then you don’t really become un-domiciled unless you elect to.
With regards to the Basic Rate Tax Band extension after gift aid, is it calculated automatically or by self-assessment?
Self-assessment (i.e. it must be claimed)
What types of transactions increase your Basic Rate Tax Band?
Relief at source
Gift aid
Of the following investments, what is the position of carrying losses forward:
- Qualifying corporate bonds
- With-profits assurance bond held by the initiator
- UT invested in gilts alone
- No CGT on qualifying corporate bonds
- No CGT on investment bonds
- UT can carry forward losses as it is chargeable to CGT
What is the usual VAT period?
Quarterly
What is the deadline for claiming holdover relief?
4 years
Does holdover relief need to be claimed, and if so by who?
Yes by both the donee and donor
Can holdover relief be claimed on assets transferred into trust?
Yes
Does the number of trusts created by a settlor infringe on the CGT allowance?
Yes
How does an ISA get inherited?
The annual allowance for the donee is increased to the full value of the donor’s ISA once probate is granted
Of the full and partial withdrawals, which does the 5% tax deferred apply to?
Partial
Can onshore bonds be qualifying?
Yes
Can offshore bonds be qualifying?
No
What product to PIBs most closely resemble?
Qualifying corporate bonds
Who is liable if a PET becomes chargeable?
The beneficiary
How much must you donate to charity from your estate to qualify for the 36% inheritance tax rate?
10% of the remaining estate after NRBs
Alex earns £120,000 employed income and £2,000 savings income. What is his Personal Allowance?
£1,570
£12,570 - ((£120,000 + £2,000) - £100,000)/2
- i.e. savings income counts towards the tapering down of your PA
If you earn £10,000 self employed income over 40 weeks, what is your Class 2 NIC liability?
£163.80
Doesn’t matter if it’s 40 weeks you need to pay £163.80 as soon as your income exceeds £6,725
Of Class 1-4 NICs, which count towards your State Pension?
All apart from 4
What is the CGT position on inheriting shares with unrealised gains?
The gain is realised and tax may be due
Adam is a HRT who realises a £50,000 gain on the sale of some assets. 20% would usually be due, but he invests this into an EIS for the reinvestment relief. Eventually, Adam sells his EIS but at this point he is a BRT. What CGT is due?
Still 20% it literally just defers the gain but the rate is still due at whatever it was when you initially invested it
- Just brushing it under the rug
If Jane transfers her VCT which has been in place for 2 years to her husband Nick, would the income tax be clawed back?
No
