NOTES Flashcards
CT: Dispose of shares?
“TEN PERCENT, TRADING and TWELVE MONTHS (last 6y)?
-> SSE!!”
CT losses: What are TRADING loss reliefs against?
ALL TRADE CT LOSSES are relieved against TOTAL PROFITS
Consortium
“Up to 20 members
Each 5%
Control
Max 75% (otherwise 75% group!)”
CT: what’s the max loss you can relieve?
“Deductions allowance: FIVE MILLION PLUS HALF PROFITS
(One per group & for 12m)”
Terminal loss relief timings: Main loss? B/f losses left?
“Main TLR: 36m from START of period
B/F losses left? 36m from END of period (LIFO) (& not before loss occurred aha)”
Pensions summary
“Employer: Deduct from TTP
Employee:
Occupational: Deducted via PAYE
Personal: Extent bands by BR amount”
Disposing of business assets?
“TRADING assets owned TWO YEARS
Shares? Own FIVE PERCENT and EMPLOYEE
-> BADR”
MCIOCT
“Control and change in trade in FIVE YEARS? LOSSES RINGFENCED
(Eight years for non-trade losses)”
Gains group
“75% direct, 50% indirect
Can only be in one
Non res links but not in group
Benefit: NGNL & SSE
But: Degrouping charge”
Corp tax: Goodwill/IFAs basic treatment
“6.5% cost capped at 6x value
No ROR on amortization”
Surrendering b/f loss in a loss group?
HAVE TO CLAIM MAXIMUM YOURSELF FIRST
What to think about when claiming lots of losses?
“There is a DEDUCTIONS ALLOWANCE
ONE PER GROUP!”
What do you have to do if surrendering losses in a group with difference accounting periods?
You CAN, but have to TIME APPORTION
Corp tax R&D benefit
“SME: Extra 86% deduction
Large: 20% tax credit”
Loss groups
“Strict 75%
Can be in multiple”
Employee remuneration: Termination payments
“Shock? (Death) ALL TAX FREE
Expected? ALL TAXABLE
Surprise?
Statutory redundancy: All exempt but reduces 30k limit
Discretionary: Up to 30k limit tax free then top-sliced afterwards
Pension/retrain/counselling/outpatient: Exempt (benefits)
PILON: Pro rate between normal income and termination rules”
Do you get BADR on transfer of goodwill?
“Goodwill transferred to close company where you own 5%? (Normally incorporation!)
-> NO BADR!
(Unless sell to unconnected person in 28d)”
What NICs do employers pay for employees?
“Class 1 secondary (salary)
1A (benefits)
1B (PAYE settlement)”
What NICs do employees pay?
Class 1 primary
What NICs do self employed people pay?
“Class 2 (flat rate)
Class 4 (profits)”
What’s the difference with a non tax-advantaged share scheme?
Also pay INCOME TAX when BUYING the shares
When can you claim BADR on EMI shares?
2y from GRANT and NO PERCENTAGE HOLDING
What benefit do companies get with tax advantaged schemes?
They can deduct the DISCOUNT GIVEN to the employee
General approach for income tax if uk res but not uk domicile?
Non UK income taxed on remittance basis (otherwise deemed domicile)
