3 Property and Investment Income Flashcards Preview

F6 Taxation > 3 Property and Investment Income > Flashcards

Flashcards in 3 Property and Investment Income Deck (29)
Loading flashcards...
1
Q

What are other types of sources of saving income other than bank interest?

A

Interest from NS&I, Interest from gilt-edged securities, interest from quoted company loan stock

2
Q

What type of savings interest is exempt?

A

ISAs and NS&I

3
Q

What is the starting rate of tax for taxpayers whose savings income falls into the first X of taxable income?

A

0% for the first £5,000

4
Q

What is the saving income nil rate band for basic rate taxpayers?

A

£1,000

5
Q

What is the saving income nil rate band for additional rate taxpayers?

A

£Nil

6
Q

What is the procedure to applying the appropriate rate of tax to savings income?

A
  1. Calculate income tax on non savings income
  2. Apply the different rates of tax a. Starting rate, b. savings nil rate band c. normal rates
  3. Normal rates
7
Q

What is the dividend nil rate band?

A

£5,000

8
Q

What is the dividend rate for basic rate?

A

7.5%

9
Q

What is the dividend rate for higher rate?

A

32.5%

10
Q

What is the dividend rate for additional rate?

A

38.1%

11
Q

Under what conditions must an expense be deductible for rental businesses?

A

To be allowable, the expenses must have been incurred wholly and exclusively for the purposes of the property business.

12
Q

What is a irrecoverable debt called in regards to rental property?

A

Impairment Loss

13
Q

What type of expenditure is not allowable in rental properties?

A

Improvement expenditure

14
Q

What is the saving income nil rate band for higher rate taxpayers?

A

£500

15
Q

What does premium mean in relation to short leases?

A

A premium is a lump sum payment made by the tenant to the landlord in consideration for the granting of a lease.

16
Q

What does grant mean in relation to short leases?

A

The grant of a lease is where the owner of a property gives the tenant the exclusive right to use the property for a fixed period of time.

17
Q

What is a short lease?

A

A short lease is a lease for a period of less than or equal to 50 years.

18
Q

What is the assessable amount on property income on short leases?

A

Premium - Less:Premium x 2% x (length of lease - number of complete years)

19
Q

What is the alternative formula for short term leases premium?

A

Premium x (51-length of lease)/50

20
Q

What are the conditions for a property to be classed as a furnished holiday letting? (4)

A
  1. Let furnished
  2. On a commercial basis with a view to the realisation of profits
  3. Available for commercial letting for 210 days a year
  4. Be actually let for 105 days of the year, excluding long term occupation
21
Q

What period of time is long term occupation in relation to furnished holiday lettings?

A

31 consecutive days

22
Q

If a tenant comes back for long terms of occupation for furnished holiday lettings, what must this not exceed?

A

155 days

23
Q

Can you offset holiday lettings against other rental income?

A

No

24
Q

What is the amount for rent a room allowance?

A

£7,500

25
Q

What is the ISA allowance for 2016/17?

A

£15,240

26
Q

How old do you have to be to have a savings ISA?

A

16 years or older

27
Q

How old do you have to be to have a stocks and shares ISA?

A

18 years or older

28
Q

What tax reliefs do ISA’s offer?

A

Income is exempt, and disposals of investments within a ISA are tax exempt from CGT

29
Q

MAKE NOTES ON SECTION8

A

MAKE NOTES ON SECTION 8