indirect investments the horrible kind

Question 1

name the two types of offsshore collectives

Answer 1

qualifying and non qualifyong

Question 2

what does qualiyfing collective mean

Answer 2

granted hmrc status

Question 3

what are the features of a qualyfing collective mean such how is equity and icnome treated

Answer 3

income tax are in relation to the tax bracket, 20% 40 45
dividends are at dividend rates

Question 4

with a qualyfing offshore collective is a psa avaiable and div allowance

Answer 4

yes

Question 5

if an offshore qualifying collective is sold how is this taxed

Answer 5

taxed at cgt 10 or 20%

Question 6

what about a non qualifying offshore collective regarding HMRC status and psa allowance

Answer 6

no HMRC status
no cgt, but when sold this is taxed as income, 20 40 45%
no psa allowance or div or savings allowance

Question 7

how are reporting funds recieved

Answer 7

recived gross

Question 8

what are the advantages of non reporting offshore collective with non uk dom status but uk res

Answer 8

if youre a non uk dom but uk res, dont have to pay iht
accumulation is quicker as its not taxed
non uk res tax free
non uk res - free of tax

Question 9

what is a uk life assurance policy that qualifies maxium you can contributye

Answer 9

its subject to income of 3600 pe ranumn per policy - so it is split into policies

Question 10

what is a non qualifying policy

Answer 10

single premoiums that are invetsmnets

Question 11

how is a uk life policy taxed

Answer 11

fund pays 20%
dividends is exmpt from income tax
fund pays 20% on disposal

Question 12

can a non qualiying uk life assurance policy be reclaimemd

Answer 12

no

Question 13

how is a policyholder taxed on uk life policy

Answer 13

taxed as income - as savings on profit - on cgt gains

Question 14

what is a charagble events

Answer 14

damps

Question 15

what are non chargable events

Answer 15

mcic - assign of mortgage - civil partner - cic

Question 16

what is teh calculation of a chargabkle event gain

Answer 16

can have 5% up to th eyears, on maturty surrendor or death

Question 17

do managment fees count tiowards the 5%

Answer 17

yes

Question 18

for a higher rate payer how are they taxed on the chargable gain of a uk life policy

Answer 18

20%

Question 19

for an adr how are they taxed on the chargable gain

Answer 19

25%

Question 20

who charges a cetrificate hwne a chartgable event occours

Answer 20

teh life office

Question 21

how is a pla and a pa certain taxed

Answer 21

teh same = part as savings - part as income

Question 22

how is a pension annuity taxed

Answer 22

taxed as full incoem

Question 23

how is a defered annuity taxed

Answer 23

as a pla

Question 24

how is a benefary annuity taxed

Answer 24

taxed in full savings income

Question 25

how is a onshore life assurance taxed

Answer 25

gross but higher extra 20% 25 if adr - the onshore

Question 26

how is an offshore life assurance taxed

Answer 26

basic always pay 20% - higher 40 45 - it is paiud net but need sto be paid

Question 27

is an offshore life asurance tax reckaiamble

Answer 27

no

Question 28

what is the benefit of offshore life assurance policy

Answer 28

compiunding affect - wealt his accuulated - income = gross rol up

Question 29

what about if a life assurance policy is in a trusr + IIP AND DISCTR

Answer 29

no chatge - uness wiithdrawn or chargable gain
iip - 20
discrtionary 45

Question 30

what is achargabkle gain

Answer 30

damps

Question 31

who would be charged in the trust

Answer 31

settlor = who created the trust

Question 32

what if a life asurance was placed into an absoukte trust who would be taxed - what rate would b taxed

Answer 32

it sa pet so nothing

Question 33

whats teh eligibility of a reit

Answer 33

close company
uk res
pid and non pid
pid - income alloance
non pid - div allowance

Question 34

what is the eligibilty of a reit

Answer 34

75% of profits have to be distrubuted as divs
90% od profit has to come from rental
125% of borrowing interest - come by rent

Question 35

is a reit liable to cgt

Answer 35

yes

Question 36

with a personal portfolio how are the taxed

Answer 36

end of life 15% - no topp slicing relief

Question 37

how is a life assurance policy