Topic 3

Question 1

How long does someone need to be present in the UK in order to be automatically regarded as a UK resident for tax purposes?

Answer 1

At least 183 days in a given tax year.

Question 2

What is ‘deemed domicile’?

Answer 2

Anyone who has been a resident in the UK for tax purposes in at least 15 or the previous 20 tax years are deemed to be UK domiciled.

Question 3

What does domicile mainly affect liability to?

Answer 3

Inheritance tax (IHT)

Question 4

List the 7 different allowances

Answer 4

• Personal allowance
• Marriage allowance
• Married couples allowance (pre 6th April 1935)
• Blind persons allowance
• Personal savings allowance (PSA)
• Dividend allowance (DA)
• Allowances for property and trading income

Question 5

When do self employed people pay their income tax and class 4 & 2 NIC’s?

Answer 5

Income tax and class 4 NICS’s are paid in two equal parts.

The first payment is due on 31st January of the tax year in which the business year ends

The second payment is due on 31st July (6 months later)

Class 2 NIC’s are due on the 31st July in one lump sum also

Question 6

What is the set order or priority if a persons income comes from several different sources?

Answer 6

1 - Non savings income
2 - Savings income
3 - Dividends
4 - Chargeable gains on non-qualifying life assurance policy.