TOPIC 3 - UK Taxation 1 COPY Flashcards
Juan comes from a long line of Argentinians, but now lives in the UK. For how many years must he have been a UK tax resident to be deemed domicile?
a) A total of 15 years.
b) 15 of the last 20 years.
c) 17 of the last 20 years.
d) A total of 20 years.
b) 15 of the last 20 years.
For how many days in a tax year must a person be present in the UK to be considered a UK tax resident?
a) 60.
b) 90.
c) 183.
d) 365.
c) 183.
Paula is a higher-rate taxpayer who makes a charitable donation through Gift Aid. This means:
a) Paula’s basic-rate income-tax threshold will be extended by the gross amount of the gift.
b) Paula will receive immediate basic-rate tax relief on the gift.
c) Paula will receive immediate basic- and higher-rate tax relief on the gift.
d) the charity can recover basic- and higher-rate tax Paula paid on the gifted amount.
a) Paula’s basic-rate income-tax threshold will be extended by the gross amount of the gift.
Greg is self-employed, with annual profits over the minimum threshold. Which of the following classes of National Insurance contributions will he have to pay?
a) 1 and 2.
b) 2 and 3.
c) 2 and 4.
d) 3 and 4.
c) 2 and 4.
Jayne left her job in January and is about to start another. Her previous employer will have given her a:
a) P30.
b) P45.
c) P60.
d) P75.
b) P45.
HMRC sets out a strict order in which income tax on different types of income is applied. Which of the following is third in that order?
a) Dividends.
b) Interest.
c) Chargeable gains from life assurance policies.
d) Earned income.
a) Dividends.
The starting rate of income tax applies to:
a) pension income.
b) interest from savings.
c) dividends.
d) all income for low earners.
b) interest from savings.
Which of the following sources of income is not subject to income tax?
a) State pensions.
b) War widow’s pension.
c) Redundancy payment in lieu of notice.
d) Share dividends.
b) War widow’s pension.
The personal savings allowance is:
a) not available to additional-rate taxpayers.
b) available to all taxpayers.
c) available only to non-taxpayers.
d) only available to basic-rate taxpayers.
a) not available to additional-rate taxpayers.
Imran is self-employed. In order to be able to deduct his business expenses from his gross income, they would need to be:
a) exclusively incurred for his trade.
b) wholly, exclusively and necessarily incurred for his trade.
c) allowable by HMRC.
d) wholly and exclusively incurred for the purpose of his trade.
d) wholly and exclusively incurred for the purpose of his trade.
A person who is UK resident for tax purposes only pays income
tax on earnings generated in the UK. True or false?
False
A person may become UK domiciled once they have been
settled in the country for a number of years. True or false?
True.
Which of the following is not assessable for income tax purposes?
a) Tips.
b) Interest from bank and building society deposits.
c) Lottery prizes.
d) Rents from land and property.
c) Lottery prizes.
In what order of priority is income taxed?
Non-savings
Savings
Dividends
Blind person’s allowance can be transferred to a spouse or
civil partner if the blind person does not use the allowance.
True or false?
True
