Taxation Flashcards
What is carry across relief ?
Set against income for same tax year or the tax year proceeding that year
What is carry back of terminal trading loss relief ?
loss incurred in final 12 months of trading can be carried back and set against trading profits in three years proceeding
What is the written down allowance in VAT ?
18% of all plant and machinery
What is general VAT rate ?
20%
Who are chargeable people under CGT ?
- individuals
- PRs
- Partners
- Trustees
What is the surcharge on non main residence residential property CGT ?
8%
What is the basic rate of CGT ?
10%
What is the rate for CGT ?
10% or 20% for individuals and 18% or 28% for residential properties
When may CGT be paid in instalments instead of the end of the year ?
- it was a gift
- asset is land
- hold over relief applies but is not met
When may 100% business relief apply ?
- it is a business or interest in a business
- unlisted company shares
What are the conditions for rollover relief to apply ?
- business must be transferred as a going concern (stays the same)
- consideration in shares - if only part in shares only that part receives relief
- business must be transferred with all its assets
What are conditions for hold-over relief to apply ?
- only available on gifts
- only gain relating to chargeable assets qualify for relief
- if donee is company doesn’t apply to shares
- both do we and do we elect to apply relief, do we accepts liability for CGT
What are conditions for business asset disposal relief of 10% ?
Interest in business must have been owned either:
- throughout period two years prior to date of disposal
- throughout period two years prior to cessation of business (must dispose of business 3 years after cessation)
Dividend allowance ?
£2k
What is VAT position for a company that makes only exempt supplies ?
It cannot register for VAT nor reclaim Input VAT which it pays on purchases
