Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TC > Question Practice > Flashcards

Question Practice Flashcards

1
Q

VAT on services incurred before registration can be recovered on services supplied in

A

the 6 months before registration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

VAT on goods can be recovered on goods supplied within

A

4 years before registration if supplied for business purposes and are still in the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Is VAT on entertaining suppliers recoverable?

A

no

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When does companies first accounting period start

A

First acquires source of chargeable income to date commences to trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When is a companies second period of account

A

Date trade commences to end of first POA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When is companies third period of account

A

Same dates as POA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

IHT - Land and buildings - where located for IHT if ND
L&B

A

where physically situated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

IHT - Land and buildings - where located for IHT if ND
Debt

A

Where the debtor resides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IHT - Land and buildings - where located for IHT if ND
Life policies

A

Where proceeds are payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

IHT - Land and buildings - where located for IHT if ND
Registered shares and securities

A

Where they ar registered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

IHT - Land and buildings - where located for IHT if ND
Bank accounts

A

At the branch where the account is kept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

IHT - Land and buildings - where located for IHT if ND
Interest in partnership

A

Where partnership business carried on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

IHT - Land and buildings - where located for IHT if ND
Goodwill

A

Where the business to which it is attached is carried on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

IHT - Land and buildings - where located for IHT if ND
Tangible property

A

At physical location

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

IHT - DTR tax credit is the

A

lower of foreign tax liability and IHT at average rate on asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

IHT if UKD or / Deemed Dom UK assets and overseas assets

A

UK - assessable
Overseas - Assessable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

IHT if UK ND UK asset/overseas

A

UK - Assessable
Overseas - Exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

IHT - Insurance policy on someone else’s life amount to include in death estate is the

A

Market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

IHT - valuing shares at the

A

lower of the quarter up and average marked bargain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

IHT Average marked bargain

A

Lowest + highest / 2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

VAT on rent / building is normally

A

Exempt - option to tax on commercial properties

22
Q

VAT on sale/construction of new residential building

A

Zero rated supply

23
Q

VAT on sale / construction of new commercial building (,3y)

A

20%

24
Q

If enact option to tax it is in place for

A

20 Years but there is a 6 month cooling off period

25
Q

Stamp duty is based on

A

VAT inclusive value

26
Q

Required level of PII

A

If gross fee income is less than £600,000, then minimum level is 2.5 * gross fee income subject to minimum of £100,000

otherwise minimum is £1.5m

27
Q

How long must PII cover be maintained after retirement

A

at least two years, preferably for six

28
Q

PCRT - Client specific meaning

A

tax planning must be specific to particular clients facts and circumstances
clients must be alerted to wider risks and implications of any courses of action

29
Q

PCRT - Lawful meaning

A

Members must act lawfully and with integrity and expect the same from their clients. Tax planning should be based on realistic assessment of facts and credible view of thhe law.

30
Q

PCRT - Disclosure and Transparency

A

Tax advice must not rely for its effectiveness on HMRC having less than the relevant facts, any disclosure must fairly represent all relevant facts

31
Q

PCRT - Advice on tax planning

A

Members must not create, encourage or promote tax planning arrangements that set out to achieve results that are contrary to the clear intention of parliament in enacting relevant legislation or are highly artificial/contrived and seek to exploit short comings

32
Q

PCRT - Professional judgement and appropriate documentation

A

Professional judgement must be exercised
notes should be kept with rationale of PJ

33
Q

What are the three scenarios where professional accountant may disclose confidential information

A

Authorised by client/employer
Disclosure is required by law (legal proceedings/AML)
Professional duty/right to disclose when not prohibited by law (quality review of prof body, protect own interests in legal proceedings)

34
Q

Conflict of interest - secondment to HMRC - steps to take

A

secondee not involved in matters relating to the seconding organisation/clients
following end of secondment, secondee should not be involved in the affairs of any taxpayer they were involved with at HMRC for a significant period
serve interests of HMRC during secondment
manage any potential conflicts of interest between HMRC and employer

35
Q

GDPR requirements with processing personal data-

A

process lawfully, fairly and transparently in relation to individuals
Collected for specified, legitimate purposes and not processed further
adequate, relevant and limited to what if necessary in relation to purposes for which they are processed
accurate, and where necessary kept up to date
kept in form which permits identification of individuals for no longer than is necessary
processed in manner that ensures appropriate security of personal data

36
Q

Who monitors compliance with UK GDPR

A

Information Commissioner’s Office (ICO

37
Q

A Data protection officer must be appointed for

A

public authorities, public bodies or organisation carrying out certain types of processing.

38
Q

Organisations handling personal data must notify

A

the ICO that they are data controller and be added to register of data controllers. Failure to notify is strict liability offence

39
Q

Where there is a breach of data likely to result in a risk to the rights and freedoms of individuals, the breach must be reported

A

within 72 hours of first coming to light.
For organisations, fines can be tiered up to a maximum of 4% of annual global turnover or 20m euros

40
Q

Precautions to prevent unauthorised access to client information on computer

A

access credentials kept safe from authorised use
computers physically secure
password changed every 3m or regularly
users have own unique log in
any unusual / unexpected activity on client HMRC record reported to HMRC
suspicious emails appearing to be from HMRC should be forwarded to their phishing team

41
Q

Money laundering definition

A

possessing or in any way dealing with or concealing proceeds of any crime or terrorist funds

42
Q

MLRO Responsibilities

A

considering internal reports made to them where there are suspicions of ML
If consider to be appropriate, reporting to NCA via external report SAR
compile and send the SAR
Specific offences for MLRO failing to make a report where needed

43
Q

Defences against failure to report ML

A
  • individual did not know / suspect ML (lack of training - offence on part of employer)
  • privilege reporting exemption (only where legal advice is given/advice in course of litigation)
    Reasonable excuse for not making a report (extreme duress and threats to safety)
    Known/reasonably believed ML taking place outside the UK and not unlawful where taking place
44
Q

Where does privileged exemption apply

A

Where legal advice is given or advice is given in the course of litigation

45
Q

AML procedures

A

register with supervisory authroity
appoint MLRO and implement internal reporting procedures
train staff on legislation and how to recognise and deal with ML and report MLRO
have appropriate internal procedures relating to risk assessments and management to deter and prevent ML
Carry out Customer DD on new clients and monitor existing clients
verify identify of new clients and evidence of identification and records maintained
Report suspicions on SAR to NCA

46
Q

How long must records of client identification be maintained after termination of client relationship

A

five years from date when all activities in relation to transaction were completed

47
Q

What is implication of leaving death estate to spouse who is not UK Dom/Deemed dom

A

spousal exemption is limited to 325000

48
Q

advantages of VAT group

A

No VAT due on supplies between them, only one VAT return between them

49
Q

When can non-corporate entity (partner or individual) join a VAT group with corporate subsidiaries

A

if it controls all members of the VAT group

50
Q

Where is there a SDLT group

A

where there is 75% shareholding (direct or indirect) between companies
Individuals cannot be in the group as they are not companies

51
Q

Sufficient ties - when have substantive UK work

A

at least 3 hours per day for at least 40 days in the tax year

TC (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions