Lower or Higher? Flashcards
Maximum amount of loss relief for an individual?
Higher of £50000 AND 25% of total income
Maxium group relief for a given corresponding accounting period?
Lower of loss of surrendering company OR taxable total profits of claimant company
When can an individual elect to use property income in an accruals basis?
If property income receipts for the year exceed £150000
Non-job related accommodation and annual charge?
Higher of gross rateable value and rent paid by employer
Additional charge – where accommodation is owned by the employer and cost exceeds £75,000. If owned for six years or less before being first made available:
Additional Charge = (cost – £75,000) × official rate of interest at 6 April
Additional charge – where accommodation is owned by the employer and cost exceeds £75,000. If owned for more than six years before being first made available
Additional charge = (Open market value (OMV) when first available – £75,000) × official rate of interest at 6 April
When can a sole trader use the cash basis?
When there’s an income of £150000 or less
When must a sole trader stop using the cash basis?
£300000 or more
Disposals elimiated from capital allowances for individual?
Lower of:
Proceeds value
Original cost
Living accommodation for employment income?
Higher of rent paid and annual value
Loan benefit for employment income?
Lower of average method and strict method
Anciliary benefits for job related accommodation?
Lower of cost and net emoluments
Is council tax exempt in job-related accommodation?
Yes
Difference in insurance (accruals vs cash basis)
Cash basis: Insurance actually paid is allowed as adjustment
Accruals basis: Adjustment is made for what is outside the tax year
Rental income (accruals vs cash basis)?
Cash: Only what is received
Accruals: The entire amount
