Brainscape's Knowledge GenomeTM

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


See full index

CII > R03 > Flashcards

R03 Flashcards

1
Q

Total Income - Appropriate Deductions e.g.?
=?

A

PACI: PCs, Allowable Business Losses, Charity, Interest Payments
Net Income

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

Limit on Income Tax Reliefs?
Reliefs include?

A

Greater of £50k, or, 25% of Adjusted Total income.
SPIT: Trade Losses, Property Loss Relief, Share Loss Relief, Interest (Qualifying Loans)

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

How does gift aid work?

A

Charity reclaims 20%, Donor has BR/HR limits increased by grossed-up amount.

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

Beneficial Loans?

A

Taxable Benefit = (‘Official’ (2%) - Actual Interest Rate Charged) x Loan Amount
<£10,000: Not taxable

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

Married Couple’s allowance?

A

Either born before 1935.
£11,080 at 10%, reduced by £1 for every £2 adjusted net income over £37k. Minimum £4280

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

Taxable Income Rates?

A

£0-£37.7k –> 20%
£37.7 - £150k –> 40%
>£150k –> 45%

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

Order in which income is taxed?
To remember?!

A

NSDO(n):
Non-Savings
Savings (+ Offshore Gains)
Dividends
Onshore

N-SDOn (N-Zone)

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

Child Benefit?
High income CB Charge?

A

£25.60, or, £16.95 for additional children.
Reduced by 1% for every £200 >£60k.

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

Gift Aid reciprocal benefits from charity cannot exceed?

A

<£100: 25% of Donation
>£100: Sum of 25% + 5% XS over £100

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

Tax relief of charitable giving?
Pre-Eminent Objects?

A

Charity: Donation Market Value taken from Taxable Income. No CGT.
Pre-Eminent: 30% object tax-reduction, against IT/CGT over next 5 years.

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

Annual Allowance? Carry forward?
Reduced AA if?

A

£60k, up to 3yrs.
Tapered (AI >£240k, TI <£200), MPAA (£10k)

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

RElief at Source? Types of pension using R@S?

A

REclaimed after tax.
Personal Pensions

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

Net Pay arrangement? Pensions using NPA?

A

Paid from gross income before tax paid.
Occupational Schemes

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

Relief by making a claim?

A

RACs

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

Net Income - Personal Allowances =?
Tax reducers?

A

Taxable Income
- EIS, VCT, SEIS

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

Self-Employed taxation?
Yrs?

A

Via ‘Basis of Assessment’ periods, do not need to coincide with tax year.
1st: Part of profits taxed
2nd: 12mths, or, accounting period ending that year
3rd: As per accounting period
Overlap from 1st/2nd Yrs as tax relief

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

Fringe Benefits:

A

Cash Equivalent/Non-Cash/Company Cards: Employee taxed at cost to employer.
Assets: Taxed at ‘Annual Value’; 20% of market value at purchase.
In-House: Marginal Cost to Employer.

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

‘In-House’ Benefits with No Taxable benefit examples:

A

Employees pay wholesale
Teachers pay 15% or more
Prof Services
Non-Displacing Rail/Bus fares

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

Car Benefit?

A

Electric: % rate on range
Diesel: 4% surcharge if doesn’t meet RDE2 (Max 37% charge)
Petrol: Now via WLTP

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

Car Benefit example?
- List Price £27k
- Discounted Cost to Employer £28k
- Accessories £4.5k
- CO2 143g/km (32%)

A

32% x (27k + 4.5k) = 10,080

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

Classic cars (15 or more yrs old)?

A

% based on engine size X Current Market Value (Not original price)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Car benefit: Capital contribution limit?

A

Employee can contribute up to £5k, which will be deducted from list price before benefit calculated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Free fuel for private use tax?

A

Car Benefit % x Fuel benefit Charge (27,800 for 23/24)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Mileage Allowance rules?
Rates?

A

Commuting to usual place of work: Not taxable. Temporary place: Taxable.
Cars: 45p for 10k miles, then 25p
Motorbikes: 24p
Bikes: 20p
Passengers 5p

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Company Vans?

A

Taxable benefit of £3500 for employees + £757 for fuel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Calculating beneficial loans?
Cheap/Interest-Free <£10k?

A

Difference between ‘Official’ and ‘Actual’ Interest rate.
Not taxable.
E.g. £20,000 x (2%-1%) = £200 charged

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Taxable Benefit: Accommodation?
Additional charge if?

A

Owned >6yrs before employee use: XS of market value over £75k x ‘Official’ Interest Rate

Owned <6yrs: Greater of ‘Annual Value’ (Expected if rented), or, Rent actually paid by employer.

> £75,000 –> XS over £75k x ‘Official’ Interest Rate, added

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Taxable Benefit: Furnished Accommodation?

A

Additional 20% of Market Value of Furniture/Equipment added

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Employers Medical insurance taxation? Exemption?

A

Taxable, unless necessary for employee working abroad.

£500, to help employees return to work.

Examination/Screening required by employer: Not taxable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Private Medical insurance?

A

Premiums subject to insurance premium tax.
Benefits paid tax free.
If employer contributes; deduction against CT. Rx as Taxable BiK.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Benefits exempt from tax?

A

Group IP
Meals/Phones
Long Service Awards
Relocation/Removal Expenses
Homeworking (20% on £6/wk)
Workplace Childcare

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Adjusted vs Threshold Income?

A

Adj: includes PCs
Thresh: excludes PCs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Life assurance policy gain taxation?

A

Full gain used to calculate Adjusted Net Income.
Top-sliced gain used for relief.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Marriage Allowance?
Can backdate?

A

Transfer 10% PA (£1260) BR to little/no income earner.
Up to 4 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

PA trap?
Paying effective rate of?

A

PA reduced by £1 each £2 over £100k.
60% (40% ‘normal’ + 20% loss of PA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Married couples allowance trap?
Effective rate of?

A

MCA reduced by £1 every £2 gross income over £30,400 down to £3530.
25% (20% BR + 5% ‘half of MCA’)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Blind persons allownce?

A

£3070

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Starting Rate for Savings?
Reduced by?

A

Where savings income falls within first £5000 taxable income.
£1 for every £1 over PA.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Tax Charge?

A

‘IRPET’
Income (Total)
- Reliefs: ‘PACI’
- PA
- Extend Bands by PCs/Gift Aid
- Tax
- Reduce by ‘Tax Reducers’: MA, MCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Parent £100 rule?

A

If capital from parents produces interest >£100 in child’s name, taxed as per parents. Unless sin a JISA.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Bare Trust
- Inputs?
- Tax?
- £100 rule apply? Regardless, benefit may be?

A

PETs
Income taxed as per beneficiary’s IT, via trust income on self-ax form.
Yes.
CGT charged to minor, with their allowances.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Vulnerable Beneficiaries trusts can be?
Types of Beneficiary?
Tax rules?

A

Bare, Discretionary, or, IIP.
Disabled or Relevant Minor.
Income/gains taxed as per beneficiaries tax position (not usual ‘relevant property’ rules).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Vulnerable beneficiaries:
- How much before proving for their benefit?
- Tax Rx?

A

3K/3% w/o proving for beneficiary.
Trustees income tax liability reduced by: (tax trustees would pay - tax beneficiary would pay).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

LI/IIP Trust?

A

Trustees: Pay 20% IT for beneficiary, cannot use allowances.
Beneficiaries: Income from trust at MR, beyond 20% paid within trust. May reclaim/pay more.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Trust income form?

A

R185

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

LI/IIPs: Trustees expenses set against income before being paid to beneficiary how?

A

‘UFSO’
UK Dividends
Foreign Dividends
Savings income
Other Income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

IIP trust created on death by will?
Chargeable transfer?
Subject to periodid/exit charges? IHT?

A

Immediate Post Death Interest (IPDI) trust.
Not if to spouse, but otherwise yes.
No. Included in Life tenants taxable estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

IIP trusts created whilst settlor alive (‘Lifetime Trusts’) since 2006?
Charges? IHT on these charges?
In beneficiaries’ taxable estate?

A

CLTs in at 20%, grossed-up if by settlor (so 25% to account for trustees’ tax due).
Periodic + Exit Charges. 6%.
No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

IIP created whilst settlor alive (‘Lifetime Trusts’) BEFORE 2006?
Charges?
IHT?

A

Gifts were PETs.
No charges.
Within IIP beneficiary taxable estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

LI/IIP Trust: Income tax on trust?

A

Direct to Beneficiary: Don’t report, no expenses deductible from income.
Via trust: Trustees pay BR IT (w/o allowances)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Interest payments are allowable deductions if?

A

Shares in company/close company
Partnership Iv
IHT
Plant & Machinery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Employee NICs paid from/to?

A

16 to 66 (SPA); no contributions thereafter even if working.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Employee NICs limits?

A

LEL: Get Benefits £123/wk
1 Threshold: Pay 8% over £242
UEL: Pay less - 2% over £957

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Employer NICs?

A

2 Threshold: Pay 13.8% over £175
Upper 2 Threshold: For <21, pay 13.8% over £967

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

NICs based on what time period?
Directors?

A

Pay periods: Wk to mth
Annual, due to irregularity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

How are NICs paid?

A

Both employee and employer contributions paid monthly by employer via PAYE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

NIC 1A?
Trivial benefits?

A

Employer contributions payable on fringe benefits/redundancy payments.
<£50 are free from NICs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

NICs ‘credited’ even if not paying in?

A

Unemployed/Sickness
Full Time Training
Mat/Pat Pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Annual maximum NICs?

A

Limit on how much NIC is at 8% between multiple employments/self-employed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Class 2 NICs?

A

Nil <£6725 (Small Profits Threshold).
Wkly standard £3.45/wk above SPT.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Class 2 exceptional jobs?

A

Share fisherman: £4.10/wk

Sub-Postmasters: C1s from salary, C2+4s from trading profits

GCSE Examiners: ‘Self-Employed’ (Though ‘employed for IT)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Class 4?

A

Nil up to Lower Profits Limit £12,570 (PA)

6% up to Upper Profits Limit £50,270
- Max payable = £2262 = (£50,270 - £12,570) x 6%

2% beyond UPL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Annual Maximum Contributions: Employed + Self-Employed?
C1 + C2?
C2 + C4?
C1 + C2 + C4?

A

C1 + C2 = £3016 (Max payable for Main Rate C1s, i.e., £37,700 x 8%).

C2 + C4 = No restriction

C1 + C2 + C4 = Separate C4 limit: Max C4 at UEL (£2262) – Main Rate C1s paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

C3 NICs?
How long after relevant year?

A

Voluntary
£17.45 quarterly/monthly up until SPA.
6 Years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

CGT if acquired before 01/04/82?

A

Market value at that date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

CGT in year of separation/not at arms length?

A

‘Non commercial’ transfer so market value used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Difference in how CGT and IHT are valued?

A

CGT is asset valued, IHT is loss to estate. E.g. company shares may be low CGT, but high IHT if affects control.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Employed vs Self Employed contracts for?

A

Employed: Contract of service
Self-Employed: Contract for Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Share options and NICs?

A

Payable on shares acquired under unapproved share option schemes.
- So Start Ups can face huge liability when options exercised.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Employer allowance with regard to C1 NICs? Except?

A

£5000
Companies where director is sole employee
Employer contributions >£100,000/yr

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

Married women NICs?
Receive?

A

Until 1977, pay reduced ‘small stamp’ rate: 1.85% on £242-£967.
Reduced Benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

NICs if moves abroad?

A

Social security contributions usually in country where employee works. Though can get up to 2yrs EEA, or, 3yrs Norway period in which continue UK contributions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Company directors with annual NIC period charged how?

A

£12,584 (£242 x 52) @ 0%
Up to £50,284 (£967 x 52) @ 8%
Over £50,284 @ 2%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

CGT: If deferred CGT is ascertainable, but payment is >18mths since disposal?

A

HMRC allow payment of tax in instalments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

CGT for Chattels?

A

Exempt if <£6000
>£6000 chargeable gain cannot be >5/3rds of XS >£6000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Gain for property?

A

Gain x (Period of Occupation & Allowable Absences/Total Period of Ownership)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

CGT Letting relief?

A

Where owner in shared occupancy to lesser of:
£40k
Exemption on part occupied by owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

CGT losses:
- Claimed within?
- Carried forward for?

A

Claimed within 4yrs
Indefinitely (Not carried back)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

What are clogged losses?

A

Losses on transacting with connected parties. Can only be used against gains with connected party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

CGT taxation?

A

Allowance: £3000
18% on Residential Property/Others within BR Band

24% Residential Property/’Other Chargeable Assets’

28% on ‘Carried Interest’ if you manage Iv Fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

To determine income for CGT purposes in same year as chargeable gain on Life Assurance?

A

Top sliced gain counts as income
(NOT total life assurance gain)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Business Asset Disposal Relief:
who?

A

Sole Trader/>5% share in trading company for at least 2 years.
Gain taxed at 10%, to limit of £1m

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

BAD relief: if shares are from an Enterprise Management Scheme must have?

A

Bought shares after 04/2013
Been given option to buy >2yrs before selling them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

BAD relief still available if >5% shareholding?

A

Only if results from company raising funds by issuing new shares.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Investors relief?

A

Mix of BADR & EIS!
10% CGT rate up to £10m on unlisted trading company share disposal. Must’ve been held for 3 years.
Cannot be connected with company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Gift-Holdover relief?

A

Defers CGT liability on to receiver of gift of Business Assets or Shares.
No CGT payable, unless, sell for less than worth or make a gain on what you paid for it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

What’s needed for Gift-Holdover of:
Business Assets?
Shares?

A

Sole Trader/Partner/>5% Voting Rights + Use assets in business

Not listed + Not personal company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Mechanics of holdover relief?

A

No CGT payable.
Donee’s acquisition cost is reduced by held-over gain –> On subsequent disposal; gain is much larger.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

If receive held-over gift and leave UK?

A

Gain crystallises if donee ceases to be resident within 6 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

What is an EMI?

A

Enterprise Management initiative: <£30m + <250 FTE employees.
Trading companies giving significant tax advantages to retain staff.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

How are EMIs tax advantaged?

A

Tax only incurred on award of schemes, NOT when exercised.
- No income tax on Exercising
- If held for 2yrs: CGT at 10%

For examples:
https://accountancycloud.com/blogs/everything-you-need-to-know-about-the-emi-scheme

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Is gift-holdover relief available for transfers to trust?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Business Asset Rollover relief?
How much?

A

‘Deferral of CGT’ when trading-purposed assets sold, and, new assets bought 1yr pre-3yrs post sale. Up to lower of gain or amount reinvested

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Incorporation relief?
Mechanics?

A

When unincorporated business transferred to a limited company in exchange for new shares in that company.
Gain deducted from issue price of shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

EIS Shares reinvestment?

A

Relief if gain invested in to EIS shares bought 1yr pre-3yrs post sale.
- Defers gain until EIS share disposal
- Original gain then taxable, EIS gain usually exempt
- Could get 10%, 18%, 20%, 28% CGT relief, as well as 30% IT relief

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

SEIS reinvestment?

A

Reinvested gains NOT deferred, but 50% reinvested gains are exempt. Other 50% chargeable to CGT.
Limited to £100k reinvested/yr.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

Share acquisitions?

A
  • Cannot re-buy within 30 days (B&B)
  • Bonus/Scrip: Rx as acquired on original holding
  • Rights Issue: Cost added to share pool
  • Scrip dividends: Rx as new acquisitions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

What is
- Bonus/Scrip issue?
- Rights?
- Scrip Dividend?

A

Bonus shares given
Rights: right to buy more.
Scrip Dividend is dividend received as shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

Employee share schemes: employees may wish to elect unapproved to be sold first as?

A

Approved/EMI have lower base cost, therefore larger gain, which can be taxed later.

99
Q

CGT paid when?
Except?

A

31st January
Residential property payable within 30 days

100
Q

Trusts which are NOT Relevant Property Trusts?

A

Bare Trusts
IIP (On Death)
Bereaved Minors/Young Persons Trusts
Charitable Trusts

101
Q

Relevant Property Trust types?

A

Discretionary
Lifetime IIP Trusts - Since 2006

102
Q

Discretionary Trust: CGT on putting assets in to trust?
Can you holdover?

A

Rx as a disposal at market value.
Can holdover if not a bare/IIP trust; acquire at settlor’s base cost.

103
Q

Discretionary Trust: CGT on disposals during life of trust?
Allowance?
Rates?

A

Allowance £1500 (Shared between settlors’ trusts, minimum 1/5th)
20% (24% for residential property)

104
Q

Discretionary Trust: CGT on transfers out of trust?

A

If transfers chargeable assets to beneficiary: market value treated as disposal to calculate gain.

105
Q

CGT tax allowance for Vulnerable/disabled trust?
Allowance?
How?

A

£3000 Allowance
Trustees charged as though beneficiaries’. Likely 18% (24% on Property Disposals).

106
Q

Bare Trusts: CGT within trust?
Disposal by selling/transfer to beneficiary?

A

Treated as though beneficiaries’ - at marginal rate.
No CGT on disposal if already absolutely entitled.

107
Q

IIP Trust: CGT on creation for:
- Settling lifetime Cash/Bonds?
- Anything else in lifetime?
- Can it be held over?
- On Death?

A

Lifetime Cash/Bonds –> No CGT
Lifetime Others –> Disposal with gain on settlor.
Yes if it is a CLT.
On death: No CGT (IHT’d).

108
Q

IIP Trust: CGT on disposal from trustees?
CGT on death of life tenant of pre-2006 trust?

A

Chargeable at trust (higher) rates (24%).
Assets within trust revalued at market value on death of life tenant (so, Tax-Free uplift). Heldover gains will be included in IHT however.

109
Q

IIP: CGT on death of life tenant of LIFETIME trusts post 03/06?
Except?

A

No CGT uplift.
IPDI
Bereaved Minors
Death before 18 in ‘18-25’ trust
Vulnerable/Disabled Trusts

110
Q

A&M Trusts: CGT when beneficiary becomes absolutely entitled to trust assets at specified age?
Can holdover?

A

Rx as disposal from trustees
Yes, unless had prior right to income.

111
Q

Disposal of shares/units identified with acquisitions how?

A

Same Day
Within 30 days
In Share Pool

112
Q

IHT >£2m does what?

A

Tapers RNRB by £1 for every £2 (Lost at £2.3m)

113
Q

RNRB: when property left to:
- Discretionary Trust?
- IPDI?

A

Unavailable, as owned by trustees (even if beneficiaries)
Available as direct descendants have IIP

114
Q

IHT ‘£3m’ limit?

A

???

115
Q

Gifts out of normal expenditure?
Form?

A

Must be from income, not affecting standard of living.
IHT 403

116
Q

Lifetime Transfers include?

A

Exempt
PETs: Individual, Bare Trust, Disabled Trust
CLTs: Others

117
Q

PET £338k, after 2yrs CLT £150k, after 2.5yrs dies.
What’s the IHT?

A

PETs not counted towards NRB in lifetime. So:
PET chargeable: £13k (out of NRB) x 40%, -40% (taper) = £3120
The PET has then used the NRB up, £150k chargeable: £150k x 40% = 60000

118
Q

CLT £400k, six years later £200k, two years later dies. What is the IHT?

A

£400k -£325k x20% = £15k paid at the time, no further tax as >7yrs before death.

At the time: £200k x 20% = £40k. Then further 20%/£40k due to death within 7yrs.

Seven year cumulation: £200k. Therefore £325k - £200k = £125k can be set against estate on death.

119
Q

Deductions allowed from estate for?

A

Reasonable Funeral expenses.

120
Q

IHT: Borrowing for Business/Agricultural relief does what?
E.g. borrowing £600k, to buy £800k BR?

A

Reduces value of assets.
£800k - £600k = £200k included in estate (Prevents double benefit of deductible loan + 100% IHT relief)

121
Q

Excluded property prior to budget?

A

Pension Funds
Non-UK Property/UTs/OEICS for Non-Dom
Reversionary Interest Trusts

122
Q

IHT maximums? For BR? For AIM?

A

£1m for NRBs
£1m EACH for Business Relief BR >£1m + AIM: eligible for 50% relief (Effective Rate 20%)

123
Q

Reduced Rate IHT?

A

Leave 10% to charity, pay only 36% to HMRC.

124
Q

IHT: Quick Succession Relief?

A

% relief, on net increase in estate of second ro die, where period between transfer of property and death is <5yrs.

125
Q

IHT: Quick Succession Relief example?
Death estate £375k, £20k tax paid. Partner dies within 1yr, estate £500k.

A

Tax on Increase = £20k x (375-20/375) = £18,933
–> (£500k - £325k) x 40% = £70k
- QSR: £18,933 x 100%
= £51,067

126
Q

Individuals dying simultaneously?
Beneficiary dies <6mths after testator?

A

For IHT purposes; died at the same time.
Avoid double charge via provision in will, for beneficiary surviving certain time.

127
Q

IHT: Transfer of NRB?
When should claim be?

A

Up to 100% NRB gained from married spouse.
Claim should be made within 2 yrs (or 3mths of becoming PRs) by PRs on 2nd death.

128
Q

100% BR available for?

A

Unincorporated Businesses
Shareholding in Unquoted
EIS/SEIS (NOT VCTs!)

129
Q

50% BR available for?

A

Controlling Shareholdings in Fully Listed Companies
AIM
Land/Buildings/Plant//Machinery in connection with Business

130
Q

BR ownership conditions?

A

For >2yrs. If inherited on death of spouse, inherit original date of ownership.

131
Q

Agricultural Relief available on?
Not?

A

Land (Not development land), Growing Crops, Farm Buildings
Not Animals, Equipment
Not XS of open market value over agricultural value (Deemed 70%).

132
Q

100% Agricultural Relief?
50%?

A

100%: Owner-Occupied Farms/Tenancies (also land let under tenancies exceeding 12mths starting after 31/08/95)
50%: Interests of Landlords in Let Farmland

133
Q

Where both BR & AR available, which is applied?
Farm with property development?

A

Agricultural Relief
Agricultural Relief on Agricultural value, BR on enhanced value.

134
Q

Woodland Relief?
What may be better?

A

Relief/deferral of tax on timber from death until sale.
If occupied from commercial purposes: claim BR at 100% (Better than WR i.e. deferral)

135
Q

GwR cannot result in double charge from ? as?

A

Initial gift e.g. House to Kids
Cease interest e.g. moving out
Tax paid on original gift, offset against tax payable at death.

136
Q

IHT: Interest free loan?

A

Not a GwR, as lender has ability to demand immediate repayment. So does not reduce lenders estate.

137
Q

POAT for? Valued as?
None if?
Land/Chattels must be revalued when?

A
  • Land: based on market rentals
  • Chattels: 2.25% of capital value
  • Intangible Property: Receipt of income: 2.25% of capital value
    Cash value of benefits <£5000
    Every 5 years
138
Q

POAT: could catch what?
Exclusions?

A

Any asset disposals since 18/03/1986 (IHT conception)
- Former owner by virtue of will/intestacy subsequently varied
- Enjoyment is ‘incidental’ e.g. ill health, disability
- LA policies where return of premium retained, balance in trust for otherd

139
Q

Form IHT 500 for?

A

Electing asset to be subject to IHT, to avoid POAT.

140
Q

IHT: If inherited shares sold within a year of death at lower value than date of death?
Land to unconnected persons within 3-4yrs?

A

Relief by recalculating IHT due.
If >lower of £1000/5% of death value.

141
Q

IHT: Valuation rule for Life Policies?
Unless?

A

Higher of Surrender Value, or, Premiums Paid - Sums Paid Out

Unless:
- Term <3yrs
- Premiums >2/3rds term
- Premiums in any year does not exceed double any other year

142
Q

IHT: Lifetime (CLT) Transfers usually charged on? by?

A

Transferor. Payable by 6mths post-transfer, or, if Apr-Oct, by Following April.

143
Q

IHT: CLTs tax due when after transferor dies?

A

Tax for chargeable events due 6mths after end of death month

144
Q

IHT: If transferor wishes to pay IHT on CLT?

A

“Gross up’ the CLT. E.g. Gift with 20%.
E.g. £10,000 net of tax: Pay £12.500.

145
Q

IHT: If transferor pays tax: £350k net gift, tax payable?
What are these ‘Grossed Up’ values used for?

A

(£350k - £325k) x 0.25 = £6250
So, paying £356,250 nets £350k.
Used for future cumulations.

146
Q

IHT: Gifts to Bare trust?
Who is liable to IHT?

A

PET
Beneficiary liable for any tax on ‘failed’ PETs.

147
Q

IHT: Gifts in to Disabled Trust are?
Can settle themselves?

A

PETs
No periodic/exit charges, nor tax if settlor makes it 7 yrs.
Yes ‘Self-Interest’ Trust if has a condition disabling in future.

148
Q

IHT: Gifts to LiT/IIP Trusts?

A

Pre-2006: PET
Post-2006: CLT; charges involved
- Unless IPDI

149
Q

IHT: Gifts to DTs?

A

20% >£325k

150
Q

DT: Periodic Charge?

A

10yrly regular charge based on 30% of average IHT charges through trust lifetime
- Max 6% of total trust value

151
Q

DT: Exit Charge?

A

Max 6% XS (30% of Lifetime Rate 20%) above NRB

152
Q

IIP Trusts: Transfer of value on?

A

Life Tenant Death
Appt under Flexible Trust
Beneficiary Death

153
Q

DT: Broadly speaking 10yrly exit periodic charge is?

A

(Trust Value - Available NRB) x 6%

154
Q

£425k in to DT, tax if paid by:
Trustees?
Transferor?

A

Trustees: £100k x 20% = £20k
Transferor £100k/0.8 x 20% = £25k

155
Q

DT at 10 yrs worth £525, periodic charge?
Effective Rate?

A

£500k - £325k = £200k
£200k x 30% x 20% = £12,000
£12k/£525k = 2.2857%

156
Q

All £600k distributed to beneficiaries on 11th anniversary, last periodic effective rate 2.2857%. Exit charge?

A

£600k x 4/40 (Whole-Quarters since Anniversary) x 2.2857% = £1371

157
Q

£400k in 18-25 trust, absolute interest at 25, exit charge?

A

(£400k-£325k) x 6% x 28/40 (Whole quarters from 18th birthday) = £3150

158
Q

What were A&M trusts?

A

Type of pre-2006 DT, transfers in were PETs, exempt from charges.

159
Q

A&M Trust options after 2008?

A
  1. Income/Capital to beneficiary at 18 - No Charges
  2. Capital to beneficiary at 25, - Only Exit Charge
  3. Unchanged, capital to beneficiary after 25 - Periodic & Exit Charges
160
Q

IHT legislation in?

A

Inheritance Tax Act (IHTA) 1984

161
Q

Automatically not resident?

A
  • <16 days in UK/year
  • <46 days if not resident for previous 3 years
  • Works full-time overseas
162
Q

Automatically UK Resident?

A
  • 183 or more days in UK (Days counted as midnight)
  • Home in the UK:
    o Own for 91 days, present in it for 30 in tax year
    o If also has overseas home: present for <30 days
  • Full-time work in UK
163
Q

Resi/Dom: Split Year if?

A

If coming/going for work, selling UK home, then may be ‘split’

164
Q

No automatic test, then, sufficient ties test:

A

3/5 if leaving, 4/5 if arriving of:
- UK Spouse/Children
- Accommodation in UK
- Substantive work (>40 days/yr)
- >90 days during either two previous years
- More time in UK than any other country

165
Q

Resi/Dom: ‘Exceptional Circumstances’: Up to?

A

60 days may be excluded due to births/deaths/sudden or life-threatening illness

166
Q

Deeming Rule?

A
  • If >2 UK ties, >30 ‘daytimes’ in UK, >1 yr resident out of 3, then any days beyond 30 ‘qualifying days’ are deemed days of presence
167
Q

Domicile: Automatically adopt?

A

Fathers

168
Q

Deemed Domicile if:

A
  • Resident for 15/20 tax years
    o Lose domicile for IT/CGT purposes if leave for 6 years
    o Lose domicile for IHT purposes if leave for 4 years
  • Born/Domiciled in UK, then returns to UK after period
169
Q

Resident in UK taxed IT/CGT/IHT on?

A

Worldwide assets

170
Q

Not resident in UK:
- IT?
- CGT?

A

IT: Only UK duties. SP taxable.
CGT: Not liable. Free after 5yrs.

171
Q

Remittance Annual Tax Charge?

A

£30,000 if resident 7/9 years
£60,000 if resident 12/14 years
Exceptions: Age <18, <£2000, Not Electing for Remittance

172
Q

Exceptions for remittances out of foreign income?

A

Personal effects
<£1000, For Repair
In UK for <275 days
Art for Public Display

173
Q

Offshore Trusts: set up by people not domiciled in the UK
- Tax?

A

IT: If UK Resident Trustee: subject to UK IT.
Gains by Trustees; CGTable
Settlor to overseas trust; IHTable

174
Q

Who Self-Ax?

A

Self-employed
Company directors
Extra Income/Taxes
High Income Child Benefit Charge

175
Q

Taxes under Self Ax?

A

IT
C2 + C4 NICs
CGT

176
Q

Self-Ax Tax return timelines?

A

Online: 31/01 after tax year
Paper: 31/10 after tax year

177
Q

Payments on Account when?
None required if?

A

1st Payment: Due 31/01
2nd Payment: Due 31/07
IT payable <£1000, >80% IT liability deducted at source/PAYE

178
Q

Balancing Payments when?

A

Due 31/07. Includes C2s, CGT, Student Loans

179
Q

Late payment from taxpayer?
Unpaid tax beyond 30 days after balancing payment?
Return not submitted by 31/01?
>3mths late?
>6mths late?
Repayment interest for overpayments?

A

BR + 2.5%
5% penalty if unpaid tax beyond 30 days after balancing payment
- £100 Fixed Penalty

£10 daily penalty, for max 90 days

Higher of £300/5% Outstanding

BR -1% (‘Minimum Floor’ of 0.5%)

180
Q

Dates:
06/04?
31/05?
06/07?
31/07?
31/10?
31/01?
03/03?

A

06/04 Tax Returns
31/05 Employers should have issued P60s
06/07 Expenses/benefits on P11D issued to employees
31/07 2nd Payment on Account
31/10 Paper Tax returns due
31/01 Online returns due
03/03 Everybody who has not paid tax due (To avoid 5% penalty)

181
Q

PAYE K Code?

A

Where taxable benefits in kind/deductions > Allowances

182
Q

Month-End Procedures:
Tax month dates?
HMRC must be paid PAYE, NICs, Student Loans by ?
Eligible employers can deduct ?NIC allowance if?

A

6th – 5th.
22nd
Employment allowance £4000 deducted if NIC <£100k prev yr

183
Q

Year-End Procedures:
P11D?
P11D (b)?
Employees given P60/P11D by?

A

P11D: For each employee with taxable benefits/expenses
P11D (b): NICs on expenses/benefits
Employees employed at EOTY given P60 & P11D by 31/05

184
Q

Overseas Tax Affairs: HMRC has ? to Ix offshore non-compliance

A

12 yrs

185
Q

Failure to disclose income/chargeable gains penalties:
- Countries auto-sharing information?
- Countries sharing on demand - Countries not exchanging
- Hide wealth by diverting to secretive jurisdictions

A
  • Same
  • 50% higher
  • Double
  • Further 50%
186
Q

What is the Ramsay principle?

A

Courts can look at end result of series of transactions for tax

187
Q

Finance Act 2004: firms marketing tax avoidance schemes must?

A

Register with HMRC as per Disclosure of Tax Avoidance Schemes (DOTAS)

188
Q

General Anti-Abuse Rule (GAAR)?

A

General Anti-Abuse Rule (GAAR) applies if ‘yes’ to:
1. Tax arrangement giving benefit?
2. Relate to GAAR tax (All but VAT)?
3. Main purpose was obtaining tax advantage?
4. Abusive under ‘Double Reasonableness Test’?
- Tax-geared penalty up to 60% of counteracted tax

189
Q

What happened to Disguised Renumeration Schemes: paid scheme users via never-repaid loans?

A

Loan charges accumulated and taxed as income spread across 3yrs (Retrospective punishment)

190
Q

When do you need to tell HMRC you need to complete a tax return by if you haven’t before?

A

5th October following relevant EOTY

191
Q

Main legislation for tax evasion?

A

Criminal Finances Act 2017

192
Q

SDLT paid within?

A

14 days of ‘Effective Date of Transaction’ (Usually completion)

193
Q

Residential Leasehold Property SDLT?

A

1% on ‘Present value’ of rent over term of lease in excess of £125,000.

Present Value = Annual Rent x Yrs of lease, then apply discount factor

194
Q

Non-Residential Leasehold Property SDLT?

A

1% on ‘Present Value’ between £150k-£5m, 2% in excess of £5m

195
Q

Anti-Avoidance Rate of ? on Companies/Collective Iv buying properties

A

15%

196
Q

Non-UK Residents/Companies: Additional ? SDLT surcharge

A

2%

197
Q

Additional properties surcharge:
SDLT?
LBTT/LTT?

A

3% - Now 5%
4%

198
Q

No relief for first time buyers with?

A

Land Transaction Tax in Wales

199
Q

Refund can be claimed if replacing main home and sold within ? mths (SDLT/LTT), or ?mths LBTT

A

36
18

200
Q

Stamp Duty: Payable on documents transferring ownership of?
How much?

A

Shares, stocks, UTs
0.5% of consideration paid for shares (SDRT paid to HMRC by stockbroker)

201
Q

Shares, rounding:
- SD?
- SDRT?
Are they deductible for CGT?

A

Rounded up to nearest £5
Rounded to nearest penny
Yes

202
Q

VAT: tax on?
Usually paid how often?
When annual accounting used, when are returns due?

A

Output on goods and services provided/Input tax on those purchased
Quarterly.
By 7th day of month, after month of VAT period ending.

203
Q

VAT: Registration Threshold?
Deregistration threshold?

A

Within 30d if turnover >£90,000, or, expected to go over within 30 days.
- Deregistration threshold £88,000

204
Q

VAT: Rates? on what?

A

20% Standard
5% Reduced Rate: Heating fuels, Contraception
0% Food, Drink, Water/Sewage, New Build Contractors
Exempt: Finance Products, Education

205
Q

‘Partially Exempt Business’ is?
VAT claimed?

A

Business makes both exempt and taxable supplies.
Cannot recover input tax for exempt supplies unless total value <£625/mth or half total VAT.

206
Q

VAT: Special Schemes?

A

‘SCAF’
- Second Hand: VAT 16.67% on difference between buy/sell price (‘Margin Scheme’)
- Cash Accounting: Output VAT when customer pays, not when invoiced. Up to £1.6m.
- Annual Accounting: If taxable supplies >£1.35m. x9mthly/x3q returns
- Flat Rate: Turnover <£150k. VAT as %annual turnover. Up to £230k

207
Q

Agricultural VAT?

A

Flat Rate: 4% ‘Flat Rate Addition’ on sales to VAT-registered customers. No need to submit returns.
- Cannot if Non-Farming Activities >£90,000

208
Q

Imported Goods VAT?

A

‘Postponed VAT Accounting’: Declare Import VAT, reclaim as Input tax on same return
(‘Reverse Charge Procedure’)

209
Q

VAT: Bad debt relief?

A

If customer fails to pay, business still must make VAT payment, except:
o Turnover <£1.35m
o Debt >6mths old, <3.5yrs old
o If debt written off, to separate bad debt account, or, handed to factoring company
o If company did not charge more than normal selling price for items

210
Q

VAT: Late penalties?

A

1st: Surcharge Liability Notice; if late during 1yr surcharge period  Surcharge
- Again: Default Surcharge of 2% Unpaid VAT (Smaller businesses after 3rd default)
- Again: Increasing penalties of 5/10/15% of unpaid VAT

211
Q

CT calculation?

A

Net Profit
+ Non-Deductible expenditure e.g. Entertainment
- Non Trading Income e.g. Interest, Chargeable Gains, Losses
- Available Allowances e.g. Capital Allowances
–> ‘Tax-Adjusted Trading Profit’
+ Other sources income e.g. property income
- Reliefs e.g. brought forward trading losses
= PCTCT

212
Q

CT: Charged for what periods?

A

Accounting periods: never longer than twelve months.

213
Q

CT: Rates?

A

Rates, per profits:
- 25% for >£250,000
- Marginal Taper for £50,000 - £250,000
- Small Profits Rate for <£50,000

213
Q

CT: Chargeable gains eligible for BAD relief?

A

No

213
Q

CT: Losses?

A

Can be offset against other income/gains of same period, or, previous 12mths.
- Claimed within 2 yrs
- Losses made during final year of trading, carried back 3 years
- Unused losses: Carried forward but only 50% of XS over £5m in current period
- Change of ownership may prohibit

214
Q

CT: Self Ax by when?
If late?

A

12mths after accounting period, or, 3mths after notice of return.
- £100 for 1/7 late, further £100 for 3/12 late
- +10% of CT Bill at 6mths late
- Further + 10% of CT Bill at 12mths late

215
Q

CT: Payable when?

A

<£1.5m: CT payable 9mths after accounting period
>£1.5m: Quarterly Payments
- Starting 6mths 13d after accounting period, then 3mthly
- >£20m pay 4mths earlier than above
- Interest charged on underpayments: taxable, deductible against CT profits

216
Q

CT: Threshold for 51% groups to pay CT quarterly?

A

Threshold divided by number of 51% companies +1.

217
Q

CT: Company tax returns submitted when?
CT payable when?

A

Within 12mths of accounting period.
SME/Mediums: 9mths post end of accounting period.
Larges: Quarterly

218
Q

What is a close company?

A

5 or fewer shareholders, or, controlled only by shareholder-directors (then called participators).

219
Q

Charge on Loans made by close company to participators?

A

33.75% on amounts outstanding at 9mths post accounting period.

220
Q

Interest on loans to buy close company shares deductible?

A

Yes - Allowable deduction for IT.

221
Q

Subject to UK CT on worldwide income and chargeable gains if?

A

Incorporated in UK
Or Management/Control in UK

222
Q

NSI Products?
- Premium Bonds?
- Direct Saver?
- Guaranteed Inc/Gr Bonds?
- Income Bonds?

A
  • Interest in Monthly Prizes
  • Easy Access, Yrly interest
  • Fixed rate savings paying mthly income/reinvested
  • Easy access savings, Mthly interest
223
Q

How are GILTs taxed?
Can elect for?
Accrued interest on sale proceeds IT’able if?

A

Fixed-interest, 6mthly, paid gross
No CGT payable.
20% IT on Interest within
Nominal Holding >£5000 any day.

224
Q

Corporate Bonds tax?

A

Taxed as savings interest
Exempt from CGT

225
Q

Deep-Discount: bond issued by companies, pays low coupon during the term. Qualifying Rules: Redeemable + ?

A
  • Redemption amount >15% higher than issue price
  • Discount <15% (Iss:Red), or, >0.5% for each year of bond term
226
Q

How are deep discounted bonds taxed?

A

On transfer/redemption  Gain on Acquisition is IT’d
- Losses may be relieved against income
- To prevent double taxation; exempt from CGT

227
Q

Permanent Interest Bearing Share (PIBS): Issued by ?
Character Tax?
On demutualisation?

A

Used to be by Building Societies.
Pay fixed interest gross on 6mthly basis. No redemption date. (‘Undated Stock’)
Taxable as savings income, eligible for SRB/PSA. No CGT.
Become Perpetual Subordinated Bonds (PSBs).

228
Q

Costs when:
Buying Shares?
Selling Shares?
Dividends?

A

Subject to SD (Documents)/SDRT (Electronic)
- 0.5% paid for shares (SDRT paid to HMRC by stockbroker)
Subject to CGT
- Marginal Rate beyond allowance

229
Q

Investment Trust: Taxed?

A

Income usually as dividends, generated from underlying shares
- Taxed as per shares
- Interest distributions rx as savings income

230
Q

Rental income: taxed?

A

Taxed at marginal rate, usually via cash basis (if <£150k)
Annual £1000 property allowance, then rx as ‘Iv Income’
Not ‘Relevant UK Earnings’ for PCs (Unless Furnished Holiday Let)

231
Q

Rental Property expenses?

A

Interest: Now receive 20% tax credit on mortgage interest paid
- Currently excludes Furnished Holiday Lets (Ending April 2025!)
- Excludes Non-Residential property

232
Q

Capital Allowances for Property?

A

Plant & Machinery:
- Office Equipment, Machines, Tools
- Equipment forming part of building is excluded
- Qualifies for 100% of Annual Iv Allowance (AIA) in year of purchase
-Limit up to £1m
- Beyond: ‘Writing-Down’ allowance of 18%

Replacement Furniture Relief: Deduction for replacement of furnishings in residential dwelling, beyond reasonable modern equivalent
o Includes white goods
o Baths, toilets etc covered under ‘repairs’

233
Q

Property/Rental income basis for Ax?

A

Self-Ax

234
Q

Premiums on Short Leases: where lease/sub-lease is <50yrs?

A

Taxed as if rent; with premium reduced by 1/50th
-Premium Amount x (50 – Yr of Lease)/50

E.g. Paul leases Peter 25 yr for £30k premium, rent of £400/mth
- £30,000 x (50-24)/50 = £15,600
Paul declares as property income

235
Q

Granting of a lease?
Lessor and Lessee get what?

A

When property owner enters lease transaction with lessee.
Lessor: “Freehold interest” in property
Lessee: “Leasehold interest”

236
Q

Sum received (Premium) on granting a lease of <50yrs taxed how?
E.g.

A

Part taxed as though it is income.
Amount of premium reduced by 1/50th for each year of lease after the 1st.
40yr lease for £100k:
E.g. Premium - ((Yrs-1)/50) x £100,000

237
Q

If married intestacy rules?

A

Spouse: Chattels/£270k (£322 from 07/23) /Half Estate
Children (Adopted Children): Half Estate

238
Q

If not married Intestacy rules?

A

Cash Poor Siblings Have Got A Hand
Children, Parents, Siblings, Half Siblings, Grandparents, Avunculi, Half Avunculi

239
Q

EIS companies must have assets of?

A

<£15m before, or, <£16m after any Iv

240
Q

Must hold EIS for how long before CGT Exempt?

A

3yrs

241
Q

Quick Succession relief rates?

A

100% if death was within one year of the original transfer
80% within two years
60% within three years
40% within four years
20% within five years

242
Q
A

CII (3 decks)

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