Tax Reducers

Question 1

Tax Reducers

What Can’t Tax Reducers Create in The Tax Computation?

Answer 1

A Negative Liability.

(Any Tax Deducted at Source is Repaid)

Question 2

Relief for Married Couples

What is The Marriage
Allowance?

Answer 2

10% of The Personal Allowance.

(Rounded up to the Nearest Multiple of 10)

Question 3

Relief for Married Couples

A Marriage Allowance Election is Beneficial When One Partner Has:

Answer 3

• Insufficient Income to Utilise Their Personal Allowance: or
• Income Taxed at 0%.

(e.g., The Starting Rate For Savings)

Question 4

Relief for Married Couples

How is The Relief Given to The Recipient Spouse?

Answer 4

As a Tax Reducer at 20%.

Question 5

Relief for Married Couples - Conditions

Neither Partner Should Pay Tax at:

Answer 5

• The Higher Rate; or
• The Dividend Upper Rate.

(Ignoring The Dividend Allowance)

Question 6

Enterprise Investment Scheme (EIS)

The Tax Reducer is a Percentage of The Lower of:

Answer 6

• The Amount Invested; or
• £1 Million

Relief is Given at a Rate of 30%.

Question 7

Enterprise Investment Scheme (EIS)

The Limit Attracting Relief Increases When:

Answer 7

Investing in a Knowledge Intensive Company.

(From £1 Million to £2 Million)

Question 8

Enterprise Investment Scheme (EIS)

To Claim The Relief, Shares Must be:

Answer 8

Newly Subscribed For.

Question 9

Seed Enterprise Investment Scheme (SEIS)

The Tax Reducer is a Percentage of The Lower of:

Answer 9

• The Amount Invested; or
• £200,000.

Relief is Given at a Rate of 50%.

Question 10

Venture Capital Trusts (VCTs)

The Tax Reducer is a Percentage of The Lower of:

Answer 10

• The Amount Invested; or
• £200,000.

Relief is Given at a Rate of 30%.