Tax Flashcards
How much is the personal allowance?
£12,570
What are the 3 uk tax bands?
Their values and rates
Basic rate = £12,571 to £50,270 @ 20%
Higher rate = £50,271 to £125,140 @ 40%
Additional rate = over £125,140 @ 45%
What are the SDLT rates?
non first time buyer
£250k = 0%
£250k - £925k = 5%
£925k - £1.5m = 10%
>£1.5m = 12%
What are SDLT rates for first time buyers?
upto £425k = 0%
£425k - £625k = 5%
>£625k = no exemption, charged at normal rate
What is the SDRT, when does it apply?
What is the rate?
Tax on the electronic purchase of shares.
Facilitated automatically through CREST to HMRC
0.5% (0.005 as a decimal)
How is rounding treated for SDRT?
Rounded up or down to nearest penny
How is rounding treated for Stamp Duty?
rounded up to nearest £5
List 5 exemptions to SDRT
1) Received as a gift
2) bequeathed in a will
3) Spouse to spouse
4) divorce transfer
5) trustee to trustee
How is VAT treated on an investment holding funds only?
VAT is not chargeable on just funds
assuming funds are recognised collective investment schemes
How is VAT treated on execution only services?
No VAT on XO only
(if advice was given, would be chargeable)
How is VAT treated on discretionary investment management?
VAT chargeable
How is VAT treated on a child trust fund (stocks & shares)
No VAT (VAT exempt due to child product)
Index Linked Gilts vs Index Corporates - Tax Treatment?
Index Linked Gilts = No Tax = all gain is capital gain which isn’t taxed
Corporates = profit due to increase in inflation = income charged on profit
How are preference shares taxed?
1) CGT like normal shares
2) can be tax wrapped
3) 0.5% stamp duty on purchase
4) zero dividend preference shares useful for high income tax
5) income taxed as dividends
ifrs treat as equity
What VAT is due on consultancy / research services?
20% as normal
Unless provided to authorised unit trust / OEIC
