Exam Prep - Need To Knows Flashcards
Qualified investor / Professional client requirements? (2/3)
1- Significant size transaction on average ten per quarter for last four quarters.
2- Client’s portfolio exceeds €500,000.
3- One year of professional work experience in financial services.
Exempt persons from Part 4A authorisation?
- Appointed representatives
- Investment exchanges & clearing houses
- Lloyd’s syndicate members
- Members of designated professional bodies
- Governments & supranationals
Contracts can be ended through?
- Breach
- Frustration
- Agreement
- Performance
DTR rules require notification to issuer if?
- EU Thresholds are broken: 5%, 10%, 15%, 20%, 25%, 30%, 50%, 75% (notify in 4 days)
- UK thresholds of 3% voting shares and any whole percentage point above must notify issuer within 2 days .
- PDMR must notify of any buy/sell of shares to issuer within 4 days.
Issuer will notify market through RNS.
What percentage of shares must shareholder own to call a meeting?
At least 10% collectively or as an individual.
PTM Levy is payable on?
- Essentially anything representing equities exc. preference shares and covered warrants
- American Depository Receipts
- Securities convertible to equity such as Warrants
- Equity share capital
Not payable on Preference shares or Covered warrants
£1 fee on trades over £10k
Under the Takeover Code / City Code, what are the thresholds for Legal Control and Effective Control?
- Legal Control of a company is >50% (mandatory bid becomes unconditional)
- Effective Control of a company is >30% (mandatory bid begins)
- If holding 90% as a result of the bid acceptance, they may acquire the outstanding minority shares by force.
How many years of NICs must be paid to qualify for a full state pension?
35 years. If this isn’t met, Class 3 voluntary contributions can be made to reach the threshold.
EMIR function?
Ensures transparency and a reduction of risk in the derivatives market.
CMA will investigate mergers if?
- Turnover is >100m
- Company supplies >25% of the market
CGT rates on non-resident property gains?
Basic rate is 18% and higher rate is 28%.
General CGT is 10% basic and 20% higher rate.
EIS receive tax relief if held for 3 years for which amounts?
Maximum investment of £1m per tax year and minimum of £500, with 30% income tax relief.
EIS are also exempt from IHT and CGT.
SDRT is payable in which situations?
SDRT is only payable for the buyer of securities at 0.5% on shares, options to buy shares and convertible loan stock.
What is your personal tax allowance?
£12,570
Tax records must be kept for 6 years in order to justify and claim a tax return
What are the income tax thresholds?
Basic rate 20%: £37,700
Higher rate 40%: £37,700 - £125,140
Additional rate 45%: £125,140 and over
Starting rate for savers is £5000
What are the dividend tax thresholds?
Basic rate - 8.75%
Higher rate - 33.75%
Additional rate - 39.35%
What are the capital gains tax rates?
Basic rate - 10%
Higher rate - 20%
Basic rate on property - 18%
Higher rate on property- 28%
There is no CGT on qualifying bonds: bonds that pay coupons inc. gilts, corporate bonds, local authority bonds, permanent interest bearings shares (PIBS)
What is the inheritance tax rate and inheritance tax allowance?
Inheritance tax is 40%
Inheritance tax allowance is £325,000
What are the corporation tax rates?
Corporation tax is 19%
What are the EIS and VCT tax rates?
EIS tax relief is 30% up to to £1m if held for 3 years
Seed EIS tax relief is 50% up to £200,000
VCT tax relief is 30% up to £200,000
What is a high net worth investor?
Income over £100,000 or net assets of £250,000
What are the annual allowances for Pensions and ISAs?
Pensions annual allowance is £60,000 tax free up to 75
ISA annual allowance is £20,000
What is the capital gains allowance?
Capital gains allowance is £6000
What is the dividend tax allowance?
Dividend allowance is £1000
