IAD Questions - Tax Related

Question 1

What is the annual income tax allowance?

Answer 1

£12,570

Question 2

What is the annual personal savings allowances?

Answer 2

Basic: £1,000
Higher: £500
Additional: £0

Question 3

What is the annual personal dividend allowance?

Answer 3

£2,000

Question 4

In what scenario would there be a reduction in personal allowance?

Answer 4

For people with a salary of over £100,000. Allowance is reduced £1 for every £2 above the threshold

Question 5

What are the basic rates for taxable income?

Answer 5

Non-savings income: 20%
Savings income: 20%
Dividend income: 8.75%

Question 6

What is the basic rate threshold for income tax?

Answer 6

Up to £37,700 of taxable income

Question 7

What is the higher rate threshold for income tax?

Answer 7

Up to £150,000 (of taxable income)

Question 8

What is the additional rate threshold for income tax?

Answer 8

Over £150,000 (of taxable income)

Question 9

What are the higher rates for taxable income?

Answer 9

Non-savings income: 40%
Savings income: 40%
Dividend income: 33.75%

Question 10

What are the additional rates for taxable income?

Answer 10

Non-savings income: 45%
Savings income: 45%
Dividend income: 39.35%

Question 11

What is the annual capital gains tax allowance?

Answer 11

£12,300

Question 12

What is the basic rate of capital gains tax?

Answer 12

10%

Question 13

What is the basic rate of capital gains tax for residential property?

Answer 13

18%

Question 14

What is the higher rate of capital gains tax?

Answer 14

20%

Question 15

What is the higher rate of capital gains tax for residential property?

Answer 15

28%

Question 16

What is the additional rate of capital gains tax for residential property?

Answer 16

28%

Question 17

What is the exemption amount of the nil-rate band for IHT purposes?

Answer 17

£325,000

Question 18

What is the exemption of the residence nill-rate band?

Answer 18

Additional £175,000 (on top of £325,000)

Question 19

What is the Stamp Duty rate on share purchases?

Answer 19

0.5%

Question 20

What is the rate of Stamp Duty Land Tax on non-residential properties up to a value of £150,000

Answer 20

0%

Question 21

What is the rate of Stamp Duty Land Tax on non-residential properties with a value of £150,000 - £250,000?

Answer 21

2%

Question 22

What is the rate of Stamp Duty Land Tax on non-residential properties over the value of £250,000?

Answer 22

5%

Question 23

What is the rate of Inheritance Tax?

Answer 23

40%

Question 24

What type of National Insurance do Employees pay?

Answer 24

Class 1 (Primary)

Question 25

What type of National Insurance do Employers pay?

Answer 25

Class 1 (Secondary)

Question 26

What type of National Insurance do the self-employed pay?

Answer 26

Class 2 and Class 4

Question 27

What is the type of Voluntary “top up” National Insurance contributions?

Answer 27

Class 3