Direct investments

Question 1

What are the qualifying criteria for furnished holiday lets?

Answer 1

Must be available to let out 210 days of the year
Must be rented out at least 105 days of the year
If the same person rents for >31 days, there shouldn’t be more than 155 days of this long-term occupancy per year.

Question 2

What are the main tax advantages of a FHL compared to normal BTL arrangements?

Answer 2

CGT reliefs
Income recognised as relevant earnings for pension contributions to be set against

Question 3

Name the exceptions to the rent-a-room scheme.

Answer 3

Accommodation not part of main home i.e. annex
Unfurnished
Used solely as a business office
Accommodation is UK-based and let whilst owners are away

Question 4

How are scrip dividends treated from an income tax perspective?

Answer 4

Taxed as if they were paid out like normal dividends

Question 5

Can JISAs and CTFs be transferred between each other?

Answer 5

No - a CTF can be transferred into a JISA but not the other way round

Question 6

Which of the following investments does the parental settlement rule apply to:
JISA
Child’s ISA
Bare trust where the beneficiary is under 18

Answer 6

Child’s ISA & the bare trust