IT Comp Flashcards
The savings nil rate band is
£1,000 for basic rate
£500 for higher rate
Nil for additional
the 0% savings starting rate only applies to
The first £5,000 of savings in BR band
What types of interest should be grossed up?
Unlisted companies loan stock
Savings income on non discretionary trusts
Net income =
Total income less qualifying interest and trade losses
Taxable income =
Net income less personal allowance
Where an individuals adjusted net income is more than £100,000
Their personal allowance is restriced by
1/2 x (ANI - £100,000)
What is adjsuted net income?
Gross income less gross personal pension contributions
REMEMBER
You can use both the savings nil rate band and the savings starting rate band
How much is the marriage allowance? and what is the tax deduction?
£1,260
£252
The marriage allowance can X but cannot X
Reduce a tax bill
generate a refund
Minor children
If a minor child recieves money from a PARENT of over £100/year, it’s taxable on the parent, even if the money is generated in a trust.
What allows interest to be Qualifying Loan Interest?
- Purchase of an interest ina. partnership or an employee controlled company
- Purchase of ordinary shares or loan to a close company (includes EU)
Purchase by a partner or employee of plant and machinery to be used within the business or for their duties
What stops QLI from being claimed?
If there was EIS claimed on the shares
QLI - What if an employee takes out a loan for P+M?
Then they’re able to claim QLI for three years from the end of the tax year of purchase and make an apportion if the P+M is used
Jointly owned properties
Income from jointly owned properties is split 50/50 unless the couple make a declaration to HMRC specifying what the split should be
