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CAAV > Tax > Flashcards

Tax Flashcards

1
Q

What is the current annual exemption for transfers on death

A

£3,000

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2
Q

What are exempt transders

A

Annual exemption of £3,000
The lifetime transfer of value is exempt if it cosntitutes normal expenditure out of incom- it is namely the gift is part of the normla expentiture of the transferor is made of after tax income ater allowingfor all other tranfer of value forming part of his normal expenditiure
any transfer made during life or on death of thetransdereors spouse or civil partner is exmpt provided both have mathching domicicies
outrights gift to charities and settlements on charitale trusts are exempt trasers
samll gifts (£250 or less)
Gifts in considersation of marriage- £1,000 forom any person, £2,500 from a grandparent or £5,000 froma parent

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3
Q

What is the nil rate band for inheritance tax

A

£325,000

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4
Q

Above £325,000, what are the two rates of tax

A

20% (lifetime transfers)
40% (transfer on death)

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5
Q

What is the current Residence IGHT nil rate bad (the rate whena residence is passed on death to direct descendants)

A

£175,000

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6
Q

Whrn dies residence nill rate rate band apply

A

when a person dies on order after 6 April 2017
Their estae included an interest in adwelling house that was a person’s residence at a time
Qualifying residential interest was inheritated by a lneal decendant

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7
Q

When does the qualify residents interest quality in a trust

A

It is an immediate post death interest which is under lineal descendant has an interest in possession
A disabled persn trsut
an 18 to 25 trust
a trust for bereaced minors
THis will not apply it is a gift to a discretionry trust

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8
Q

What amount iof estae means there is a tapered withdrawl for estates

A

Tapered amount for estates worth £2 million or more

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9
Q

What is the timeline for potentially exempt transfer

A

7 years

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10
Q

After three years for potentially exempt transfers, what is thre percentage decrease

A

20%

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11
Q

What is deducted from chargable assets

A

Liabilities including debt, foreign liabilites, all other liabilites, APR and BPR, gifts wiht rervation

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12
Q

What is the defintion for inheriance tax

A

THe price which the property might reasonably be expected to fetch if sold on the open arket

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13
Q

What is included in the business property releif- 100%

A

A busienss carried by a sole ade- 100%
Unquoted securities of a company giving the transferor control- 100%
Any unquoted shares- 100%

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14
Q

What is gets 50% BPR

A

Quotted securities or shares where the transfer contrls the company
land, buildings, plant or machinery used wholly or mainly for the purpose of a business carried on aby a company or partnership or has an interest in

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15
Q

What is the minimium ownership periods

A

must owned throught 2 year period prior to the transfer
or replaced other relevant busienss property atleast 2 out of 5 years prior to transfr

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16
Q

Can BR be on a lifetime gift

A

yes

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17
Q

Can APR and BPR be applied at the same time

A

Yes but APR is applied first and BR is applied after on the non agricultural value

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18
Q

How does woodland apply ot APR

A

It is with agriculutal land or pasture and the occupation is ancilalry to the occupation of that ladn or pastue- this includes amentiy woodland, copses commercial forestry

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19
Q

What is the famehouse case for a farmhouse

A

Mckenna V recenure & Customs

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20
Q

What is test for agricultural properties

A

character appropriate test

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21
Q

What are the cases where you would only get 50%

A

vacant possesion, short term loss of vacnnt psosession (wihtin 24 motnhs such as a FBT), land let to a tenacny beginning on or after 1 September 1995

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22
Q

How does APR apply

A

occupiedthe property throughout the 2 years before the transfer or owned the property throught the the last 7 years during which have been occupied for the purposes either by the tranferor ot somebody else
Replacement property- transfereor must have occiped the prpeprties for 2 out of 5 years the transfereer must have owned the property for at least 7 out of the last 10 years
Must show that it is clearly in hand farming, owner ocupies the farm

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23
Q

How are are farm cottages included

A

Occupied by an employyee working on the farm. Satisfied if the occupier is retired and is protected udner Rent (agrculutrual act 1976 or the Housing Act 1998) ir under a lease whcih is granted under agricultural empoloyemtn contract which ahas a protected tenancy or licence

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24
Q

What does an AOC usually get on the open market value

A

usually takes a thrid off the price

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25
Q

What is usually the % for agircultural value

A

70%

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26
Q

What are the the two types of relief

A

woodland relief and heritage relief

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27
Q
A
28
Q

What act is CGT under

A

taxation of chargeable gains act 1992

29
Q

What is dedutable allowable expenditure

A

The historic cost of the asset
Any capital expenditure on improvements to the asset is deduction provided the imrporvemnts are reflected in the state or nature of the asset at teh time of its disposal
The incidental costs of the disposal (professional fees and selling agent fees including vlauations)

30
Q

What is the allowable exemption for CGT

A

£3,000

31
Q

Wha t is the tax rate for the higher income tax rate

A

20%

32
Q

What is the basic rate band for CGT

A

10%

33
Q

What is the gain percentage for teh sale of residential property

A

24%

34
Q

What isthe rate or basic rate tax payers

A

18%

35
Q

What is the rate for business asset disposal relief

A

10%

36
Q

What is the current limit for business asset disposal relif

A

£1 million

37
Q

What are the qualifying business disposals

A

a material disposal of business assets by an invididual
associated disposal by an individual
disposalof settlement business assets by trustees

38
Q

How does business roll-over relief work

A

Where one business asset is sold to purchase another asset

39
Q

What is the time limit to replace assets for rollover relief

A

Acquired one year before or three years after the disposal of the old assets

40
Q

What are the conditions of rollover relief

A

a person carrying on a trade sells assets used and only for the purposes of a trade throughout his period of ownership
he uses the sale proceed wihtin the specified time period to buy other assets
the old assets and new are within the certain specified classes of assets

41
Q

What are the two tupes of holdover reliefs

A

business assets and lifetime gists

42
Q

What are the types of CGT releif

A

Holdover relief, business asset disposal releif, lifetime gifts and business gifts

43
Q

Would gifts be chargeable to IHT

A

Yes

44
Q

What are the stamp duty for single residential property

A

Up to £250,000- 0%
Next £675,000 (£250,001 to £925,000)- 5%
Next £575,000 (£925,001 to £1.5million)- 10%
The remaining amount (the portion above £1.5 million) 12%

45
Q

What is the higher rate for SDLT

A

Pay additional 3% of SDLT

46
Q

What are the reduction from APR and BPRreliefs in 2026 and how long do you have to pay it back?

A

£1 million has full releif
The remaining will then have 50% relief
THe remaining will be taxed at 40%
This can be paid over 10 years

47
Q

What is the main date for changes of APR & BPR

A

Death after 5th of April 2026

48
Q

What are the CGT Rates

A

Higher band -> 20% to 24%
Lower rate-> 10% to 18%

49
Q

What is the change to business asset disposal relief

A

raised tax rate from 10% to 14% for 2025/2025
18%

50
Q

What is the SDLT relief for first time buyers

A

Up to £625,000 with the frst £400,000 having no charges in March

51
Q

What is the higher rate for SDLT for additional dwellings

A

3% -> 5%

52
Q

what is the change to national insurance

A

It is increased from 13.8% to 15%

53
Q

when is the nil rate band frozen until

A

2030

54
Q

when does the taper relief commence

A

after the first 3 years

55
Q

What are the agricultural stamp duty dates

A

Up to £150,000- 0%
Next £100,000 2%
The remaining amount (the portion above £250,00) 5%

56
Q

What are the current values for SDLT

A

Up to £250,000- 0
The next £675,000 (portion of £250,001 to £925000)- 5%
The next £575,000 (£925,001 to £1.5 million) 10%
The remainign amount (the portion above £1.5 million)-12%

57
Q

What is the annual exemption for CGT

A

£3,000

58
Q

what is the current income rates personal allowance

A

£12,570

59
Q

What is the basic rate for income tax

A

£12,571 to £50,270- 20%

60
Q

What is the higher rate tax relief

A

£50,271 to £125,140- 40%

61
Q

What are the business asset disposal relief

A

10% on all qualifying assets

62
Q

How long must you have a business before selling it

A

2 years

63
Q

How long must you purchase a new building for BADR

A

3 years

64
Q

What is the main residence nil rate band for IHT and what must the estate be worth

A

£175,000
Estate is worth more than £2 million taper threshold

65
Q

What is the current base rate

A

5%

66
Q

What is the annual tax on enveloped dwellings

A

It is the annual tax payable on properties over £500,000

67
Q

What is the residence nil rate band fixed at?

A

£175,000

CAAV (30 decks)

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