The capital taxations overview - HMRC work

Question 1

What are the different national taxes for HMRC ?

Answer 1

Capital taxation work 
•	Inheritance Tax
•	Capital Gains Tax
•	Income Tax
•	Corporation Tax (e.g. Capital Allowances)
•	Stamp Duty Land Tax
•	VAT
•	Annual Tax on Enveloped Dwellings (ATED)

Question 2

What is inheritance tax

Answer 2

Inheritance Tax (IHT) is a tax on the estate of someone who has died, including all property, possessions and money.

Question 3

Capital Gains Tax

Answer 3

A capital gains tax is a tax on the profit realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.

• tax payable by the individual as opposed to company

Question 4

Income Tax

Answer 4

Income Tax is a tax you pay on your income. You do not have to pay tax on all types of income.

• for the VOA consider rental income (unless you’re a live-in landlord and get less than the rent a room limit)

Question 5

Corporation Tax (e.g. Capital Allowances)

Answer 5

Taxable profits for Corporation Tax include the money your company or association makes from:

doing business (‘trading profits’)

investments

selling assets for more than they cost (‘chargeable gains’)

Question 6

Stamp Duty Land Tax

Answer 6

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

Question 7

VAT

Answer 7

Can be payable on some property transactions such as new build residentials

Question 8

Annual Tax on Enveloped Dwellings (ATED)

Answer 8

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000