Computation Flashcards
1
Q
Exempt income
A
Interest on national savings certificates
Income from ISAs or (NISAs) - both interest & dividends
Betting, competition, lottery and premium bond winnings
Some social security benefits
Statutory redundancy pay
First £7,500 of gross annual rents (rent a room scheme)
Scholarships
Income tax repayment interest
Universal credit
2
Q
Circumstances in which interest payments are dedutible
A
Interest payments are deductible from income if:
- to buy plant and machinery
- to buy interest in a close company
- to buy shares in an employee controlled company
- to invest in a partnership or contribute capital or make a loan
- To buy shares or lend money to a co-operative - the borrower must work for a greater part of his time in teh co-operative
- to pay inheritance tax (interest paid by personal representatives qualifies for 12 months)
3
Q
What is a close company?
A
a company controlled by its shareholder-directors or by five or fewer shareholders
