Part 3

Question 1

What are the wasting chattel rules?

Answer 1

Both under £6k - exempt
Proceeds under £6k - bring it up to 6k
Cost under 6k - lower of regular working and 5/3 (gross proceeds - 6k)

Set of chattels
Proceeds less cost x A/(A+B) = gain/loss

A = gross proceeds
B = value if remainder

Question 2

How do you calculate each personal tax code?

Answer 2

Allowances more than deductions = L
Deductions more than allowances = K

L
Remove last letter
Add L

K
Remove last letter
Subtract 1
Add K at beginning

Question 3

What is the annual exempt amount for individuals

Answer 3

12300

Question 4

What assets are exempt from capital gains?

Answer 4

Cash
Cars
Some chattels
Gilts
NS&I certificates/premium bonds
ISA investments
Treasury stock

Question 5

How do you calculate car benefits above 79g/km?

Answer 5

Co2 emissions less 75 /5 add 20

Question 6

How to work with gift aid?

Answer 6

Extend income tax band by GROSS donation (i.e. 120%)

Question 7

How do you reduce PA if over 100k

Answer 7

Reduce by £1 for every £2 over. I.e no personal allowance if net income above 125140

Question 8

Basis years