Income tax rules Flashcards
1
Q
what is adjusted net income
A
Net income + payroll giving- gift aid- gross personal pension contribution
(x-100k)/2
gross up pension and gift aid (100/80)
2
Q
List 4 qualifying interest payments
A
you remove this from total income
loans to buy NCA
loans to buy interest in close company
loans to invest in partnership
loans to pay inheritance tax
NITP- NCA interest tax partnership
3
Q
What is child tax benefit
A
Every £200 over £60,000, 1% of child tax benefit charged
use hardman for CBT rates
4
Q
How do you treat disposals in capital allowances for MP, SRP and single asset
A
Lower of cost and proceeds
MP/SRP: if positive use WDA but if negative eliminate with balancing charge
Single asset: Positive use balancing allowance and negative use balancing charge
