Topic 4 Flashcards
What is the annual CGT allowance also referred to as the annual exempt amount?
£11,100
In regards with ‘bed and breakfasting’, any shares and unit trusts that are sold can be repurchased within how many days?
30 days
What is private residence relief?
Is available when someone sells the property they have lived in as their main it only residence.
What is entrepreneur’s relief?
A lower rate of 10% is applied to a lifetime of 10m of cumulative gains arising from the disposal of trading businesses and rom certain disposals of shares in trading companies.
In order for an individual to claim entrepreneur’s relief, he/she must own at lease ___% of the ordinary share capital which exercised at least ___% of the voting rights in that company.
5%, 5%
What is roll over relief?
Business assets when replaced can defer CGT until final disposal is made.
What is Hold-over relief?
CGT on gifts can be deferred until the recipient disposed of it.
What is potentially exempt transfer?
When assets are transferred from a person’s estate during their lifetime, this could be exempt from tax if the donor survives for 7 years after making the gift. If donor dies within 7 years of making the gift, the value of the gift exceeds the nil rate band then IHT becomes due.
What are chargeable lifetime transfer?
Similar to PET’sSome life time gifts notably to those companies, other organisations and certain trusts has a reduced rate of 20%
Is IHT applicable on transfers between spouses or civil partners both during lifetime and on death? tRue or false?
True I
Small gifts up to £___ per recipient are exempt from IHT.
£250
Wedding gifts up to £______(increased to £____ gifts from parents or £______ from grandparents are IHT free.
£1000, £5000, £2,500
Give 2 examples
of services exempt from VAT?
Health and education
What is corporation tax?
Paid by limited companies on their profits.
What is withholding tax?
Refers to any tax on income that is levied at source before that income is received. 20% tax is applied on earning of non-residents e.g. Entertainers etc
