Topic 3 Flashcards
What is Capital Gains Tax?
Tax payable on the gain made she certain assets abound certain value are disposed of usually by selling them.
What is Earned Income?
Income from employment or self-employment. E.g. Profits, salary, tips, commission, bonuses and pension benefits.
What is Unearned income?
Income that is not derived from employment or self-employment (interest/dividends from investments, rental income, trust income)
People born before __ April 19___ would no longer receive a higher personal allowance.
6th April 1938
What is the personal allowance for individuals?
£11,000.
People’s whose annual income exceeds £100,000 have a restricted personal allowance. This it reduced by £__ for every £__ they earn.
Reduced by £1 for every £2 they earn.
Marriage allowance: it is possible for spouses born after 5th of April 1938 to transfer up to ____% of their personal income to their spouse providing they are not liable to income tax and their spouse is not liable to income tax at the higher or additional rate.
10%
Personal savings allowance enables savers to receive tax free for the first £_____ of their savings. £_____ for higher rate tax payers and £_____ for additional rate tax payers.
£1000 for basic rate, £500 for higher rate and 0 for additional rate tax payers
What is the dividend allowance?
£5000
Income bands and tax rates:
Income band
Basic rate \_\_\_% £\_\_\_\_\_\_\_
Higher rate \_\_\_% £\_\_\_\_\_\_\_
Additional rate \_\_\_% £\_\_\_\_\_\_\_BRT 20% (0-32k)
HRT 40% (32-150)
ART 45% (150k +)
For those on low incomes a starting rate of 0% applies to the first £_______ of savings income.
£5000
When a gift is made using gift aid, the charity can recover the basic rate tax that is assumed to have been paid on the amount of the gift, increasing the value of the net gift by ___%.
20%
In what order does it priority is income taxed?
Income, savings and dividends
