IN CLASS TEST Flashcards
married couples joint income
split
Personal allowance below £100,000
£11,500
Personal Allowance above £100,000
is 0.5 of anything above £11,500
Personal Allowance above £123,000
is £nil
Income Tax Basic Rate
20% up to £33,500
Income Tax Higher Rate
40% between £33,500 and £150,000
Income Tax Additional Rate
45% above £150,000
Personal Savings Allowance
BR - £1,000, HR - £500, AR - £nil
Dividends Tax Exemption
First £5,000 isnt taxed
Dividend Tax
BR - 7.5%, HR - 32.5%, AR - 38.1%
Company Debenture
is * 100/80 and 20% is added back
Gift Aid Donation
treated as net and 20% is collected from the government
Lease Premium
P * (L-1) * 2%
Self Employed Taxable Income
Start with net profit, add back non allowable expenses and deduct non trading income
Expensive Living Accommodation
interest% * (money spent on property - 75000) * months
Assets taxed at
20%
Mileage
45p up to 1,000. Anything Above is 25p mile
CO2 emissions maximum
37%
Diesel Cars Supplement
3%
Fuel for private use
% * 22,600 * Months
CO2 emissions
50 - 9%, to 75 - 13%, to 94 - 15%, 95+ 18%
Class 1
12 % of employees income
Class 2
Self employed flat rate £2.58 pw
Class 4
Self employed percentage
8164-45000 9% then 12%
Class 3
Unemployed voluntary
Exempt from CGT
motor cars, chattels less than 6000, gilt edged securities, premium bonds and winnings
CGT Annual Exemption
£11,300
Capital Gains Taxed
10% or 20%
Residential Properties Taxed
18% or 28%
Allowable Expenditure (this is subtracted)
acquisition cost, legal fees, enhancement costs
Part disposal of Asset
A/A+B
A= disposal value
B=value of part remaining
disposal value =
sales proceeds
gifted assets
market value is used
Chattel exemption is lower of
chargeable gain or
5/3 * (gross proceeds - 6000)
always work out property chargeable gain first, then
subtract annual exemption and any losses
market value of shares =
lowest price + 0.5( difference between higher and lower price)
PPR =
whole gain * length of residence/ length of ownership
letting relief is lowest of
40,000 or PPR or gain on property
part disposal of land
cost * proceeds/ proceeds + remaining
last 18 months
of a property count if its been the main residence at some point
Main pool
18%
Special rate pool
8%
Capital allowance first 200,000
is annual investment allowance
cars > 130
are in the special rate pool
mortgage is taxed at
75%
for cars always use
list price
government gilts or bonds are
value * 100/80
PA over 100,000
11500-(salary-100,000)/2
gift aid donations
subtract before work out PA and extend basic rate when working out tax liability
less tax paid at source
PAYE, 20% of gment gilts and 20% of 25% of loans and mortgage
add disallowed expenses (8)
drawings, cap expenditure, private use, bad debt, legal fees, depreciation, sale of assets, GAD
less non trading income (3)
bank interest, property income, sale of NCA
