Topic 2 Income Tax

Question 1

If a spouse in a married couple earns below their personal allowance what is the maximum amount of their personal allowance they can transfer to their spouse?

Answer 1

10%

Question 2

10% of personal allowance can only be transferred to a spouse if what?

Answer 2

The partner is not a higher or additional tax payer

Question 3

What is the benefit of having proceeds from a life assurance policy for a basic rate tax payer?

Answer 3

The tax is deemed as being taken at source so no tax is due

Question 4

When may tax be due of the proceeds of a life policy?

Answer 4

If the policy is non-qualifiying