11 - Income tax - overview and investment income.

 0    30 kartičky    michallekawa
stáhnout mp3 Vytisknout hrát zkontrolovat se
 
otázka English odpověď English
Overseas income assessed under the remittance basis will be subject to income tax at ... rates.
začněte se učit
non-saving income rates
1. Non-saving income. | 2. Saving income. | 3. dividend income. | To maximise tax relief in most cases offset PA and reliefs against income in the same order as above. | In some circumstances it is beneficial to offset the PA in different order.
I.T. Interest on qualifying loans relief is based on ... amount.
začněte se učit
on gross amount
Maximum deduction from total income is greater of £50.000 and 25% or ATI. The ATI formula is:
ATI - adjusted taxable income
začněte se učit
Total income − Gross PPCs
PPC - personal pension scheme
Marriage allowance (£1250) restriction:
začněte se učit
Neither of spouses cannot be a higher or additional taxpayer.
DTR formula (income tax reducer):
začněte se učit
lower of UK and overseas tax
Non-saving income types:
ET PPT
začněte se učit
Employment | Trading | Property | Pension | Trust
The income arising from assets held jointly by husband and wife is normally split 50:50, except...
začněte se učit
shares in close companies.
The income arising from assets held jointly by husband and wife is normally* ... An ... is available, except... and shares in close companies.
3
začněte se učit
split 50:50. | An election is available to split the income according to beneficial ownership. | The election cannot be made for joint bank accounts or building society accounts.
Income earned by a child from a parental disposition is taxed on the parent if exceeds...
začněte se učit
if the gross income exceeds £100 per annum. Note that, when the amount is greater than £100, the whole amount is taxable, not just the excess.
Income tax exempts. Interest on...
3
začněte se učit
NSI saving certificates. | Save as you earn (SAYE) share save accounts. | Tax repayments interest.
NST
NSI - National Savings and Investment
Income tax exempts:
#
začněte se učit
Statutory redundancy and £30.000 of loss of employment compensation. | Universal credit. | Child benefit. | Venture capital trust (VCT) dividends. | Educational grants and scholarship. | Interest* | Winnings and prizes.
SUCh_VIEW
*NSI saving certificates. | Save as you earn (SAYE) share save accounts. | Tax repayments interest.
I.T. ISA allowance on spouse death conditions:
začněte se učit
Any combination of ISA-cash and ISA-shares up to £20,000.
Property income is assessed on cash basis but accrual basis is compulsory if...
2
začněte se učit
if gross annual rent is over £150,000 | or can elect to use accrual basis.
Property income. Expenses reliefs:
2
začněte se učit
Replacement furniture relief. | Interest paid is an allowable deduction*.
*special rules for individuals apply
Property income losses treatment for individuals:
začněte se učit
can only be carried forward against future UK property income. | The loss is automatically carried forward and set against the first available future property income.
If a loss arises on the overseas property business it may only be carried forward against future profits from the overseas property business. | Profits and losses on all the properties are aggregated.|
Property income formula:
začněte se učit
Rent received + Rental income portion of short lease premiums received − Allowable expenses
Tax relief on financing costs of investment property is restricted to...
začněte se učit
to 20%.
Tax relief on financing costs of investment property applies to loans to...
2
začněte se učit
to buy | or improve residential property.
Carrying out work to the property in order to make it more marketable, or taking steps to find purchasers, will indicate a trading motive. | Relief has been phased in gradually
Investment property financing costs relief for 2020/21 rules for individuals:
2cz
začněte se učit
No finance costs deductible from property income. | Tax relief for all finance costs given at 20% by deduction from IT liability.
Investment property financing costs relief has not impose restrictions on:
3
začněte se učit
Companies. | Loans relating to the furnished holiday accommodation. | Loans relating to non-residential properties.
Property income. Premium for granting short leases formula:
začněte se učit
2% × Premium × (n − 1)
n = number of years of lease
Rent-a-room relief conditions:
2cz+2cz
Furnished room in a main domestic residence.
začněte se učit
Gross rent up to £7,500 is exempt, | unless elect for loss.
If the gross annual receipts are more than £7,500: – the individual may choose between paying tax on the excess | or being taxed in the ordinary way on the profit from letting (rent less expenses less replacement furniture relief).
Furnished holiday accommodation (FHA) tax treatment:
2
začněte se učit
property income but treated as arising from a single and separate business. | Business asset for Gift relief and BADR (as opposed to normal residential property).
Relevant earnings for pensions relief.
Furnished holiday accommodation (FHA) and finance costs:
začněte se učit
100% fully deductible from FHA income
Furnished holiday accommodation - all Plant and machinery (including furniture) treatment:
2
začněte se učit
Deduction available, if using cash basis. | Capital allowances available, if using accruals basis.
FHA and losses:
3
začněte se učit
Can only be set against profits from the same FHA business. | Firstly offset in the same year, then carry forward. | UK FHA losses can on be set against UK FHA profits (the same rule for EEA losses).
Furnished holiday accommodation conditions:
4
začněte se učit
Available to let for at least 210 days. | Actually let for at least 105 days. | If own more than 1 property averaging is available to satisfy the 105 day rule. | Not let for periods of ‘long term occupation’* in excess of 155 days.
*occupation by the same person for at least 31 consecutive days.
Situation condition for Furnished holiday accommodation:
začněte se učit
Must be situated in the UK or EEA.
Real estate investment trusts (REITs) definition and operating:
4
REIT gives investors the opportunity to invest in a quoted property business set up as an investment trust. | Dividends received by an individual out of the profits of a REIT are not treated like other dividend income
začněte se učit
Quoted property investment trust (QPIT). | Dividend received by individual from REIT are treated as property income.| Received amount grossed up by 20% on IT return | but the tax credit will be given of this gross amount.
QP20%
Individual who receives dividends of £1,200 will include gross property income in his tax return of £1,500. The income will be taxed at 20%, 40% or 45%. Tax credit of £300 is available to reduce the actual tax payable, and can be repaid.
Company transfers quoted shares to its director, who pays £1 per share, whereas MV is £24.50. What is the amount of tax if director is additional rate taxpayer?
začněte se učit
It is a taxable benefit equal to the amount underpaid, so it will 45% of IT and 2% of NIC ee* for £23.50 of each share.
*Share are quoted so fall within the definition of ‘readily convertible assets’, therefore NIC class 1 is payable.

Chcete-li přidat komentář, musíte se přihlásit.