Equations Flashcards
1
Q
A
2
Q
Additional benefit accomodation
A
(Cost - 75000) x rate of interest at start of tax year
3
Q
Car tax
A
(CO2 - 75) /5
+20%, +4% for diesels,
Max 37%
4
Q
What are the badges of trade
A
- Intention to make profit - suggests trading
- Number of similar transactions
- Nature of the asset - three uses: Personal and investment are capital and resale at a profit which constitutes trading.
- Connection with existing trade e.g. car mechanic selling car
- Changes to asset e.g. enhancing its marketability
- Reasons for sale e.g. a person forced to sell asset under financial pressure is unlikely to be trading
- Source of finance - ST money borrowed to buy/improve asset likely trading
- Period of ownership
- Method of acquisition
5
Q
A
