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15 Cards in this Set
- Front
- Back
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A key criterion necessary for satisfying the normal expenditure rule for exempt lifetime transfers is that the payments
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a. must not exceed £3,000 per annum.
B. MUST NOT REDUCE THE TRANSFEROR'S STANDARD OF LIVING. c. must be agreed in advance with HM Revenue & Customs. d. may only be made to family members. |
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An individual has come to the UK ofr the first time to work on a permanent basis for a UK company. How will his residency status be assessed for tax purposes?
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A. HE WILL BE IMMEDIATELY CLASSED AS RESIDENT.
b. he will be classed as ordinarily resident from the start of the next tax year. c. he will be immediately classed as ordinarilly resident. d. he will be classed as resident after 183 days. |
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How will an employed higher-rate tax payer make any payments on account under the self-assessment tax regime?
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a. through the PAYE system.
b. by annual payments on the 31 january. c. through the P11D system. D. BY MAKING PAYMENTS TWICE A YEAR. |
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In respect of taxation, the Ramsay principle is used to
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A. LOOK AT A SERIES OF TRANSACTIONS IN CASES OF TAX AVOIDANCE.
b. focus on the most serious offences in cases of mutiple tax evasion. c. limit the investigate powers of the tax authorities to a maximum of five years. d. give the benefit of doubt to a taxpayer in cases of accidental underpayment of tax. |
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A small limited company with a turnover of £500,000 has a trading year which ends on the 30 June. According to HM Revenue & Customs, what is the latest date the company should pay any Coporation Tax?
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a. 30 september the same year.
b. 31 january the following year. C. 31 MARCH THE FOLLOWING YEAR. d. 5 April the following year. |
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A newly married couple purchase their first home together for £240,000. The husband has previously owned a property and the wife has not. What, if any, Stamp Duty Tax is payable?
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a. nil
b. £1,150 c. £1,200 D. £2,400 |
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Margaret has not paid any employee National Insurance (NI) contributions for the 2010/2011 tax year, but her NI contribution record has been credited. This is because
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a. she will retire part way through the tax year.
B. HER EARNINGS ARE MARGINALLY ABOVE THE LOWER EARNINGS LIMIT (LEL). c. she overpaid in the preceding tax year. d. her credits are based on her husband's earnings. |
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Alicia and Emilio are married and are both resident in the UK. Alicia is domiciled in Spain and Emilio is domiciled in the UK. On Emilio's death, his £500,000 estate is inherited by Alicia. How much Inheritance Tax, if any, would be due if his death occurs in the 2010/2011 tax year?
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a. nil
B. £48,000 c. £70,000 d. £178,000 |
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Oscar, having made no previous transfers, gifts £800,000 in cash to a discretionary trust for his son, Adam. What rate(s) of Inheritance Tax are applicable at the time of the gift?
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a. 0% only.
b. 20% only. C. 0% AND 20% d. 0% and 40% |
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when Dave died his total estate on death was valued at £250,000. However, all of this was subject to Inheritance Tax because
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a. all his assets were held overseas.
b. his nil rate band had been transferred to his ex-wife. C. OF PREVIOUS POTENTIALLY EXEMPT TRANSFER. d. the estate derived from assets subject to Capital Gains Tax rollover relief. |
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The main criterion used as a part of the habitual and substantial test for UK residency is
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a. at least 17 out of the previous 20 have been spent living in the UK.
B. SPENDING AT LEAST 91 DAYS PER TAX YEAR IN THE UK OVER 4 CONSECUTIVE TAX YEARS. c. spending at least 183 or more consecutive days in the UK over a 2 year period. d. at least 4 out of the last 7 years have been spent working in the UK. |
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Rebecca has been told that, as a result of her self assessment, she is liable to pay class 4 National Insurance contributions. This confirms that she has
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a. income from at least two concurrent sources.
b. been on maternity leave for part of the tax year. c. held two, or more, employments during the tax year. D. EARNED AT LEAST PART OF HER INCOME FROM SELF-EMPLOYMENT. |
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Sally will pay Income Tax in three instalments. This is most likely to be because
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a. her taxable income has reduced.
B. SHE IS SELF-EMPLOYED. c. she previously lived abroad. d. she recieves income through PAYE. |
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Max is domicilied in France but is moving to the UK to work on a 5-year contract. He should be aware that
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A. AN ANNUAL TAX CHARGE OF £30,000 COULD BE LEVIED.
b. his UK income will not be taxed in the UK if he continues to work his French employer. c. his UK income will not be taxed in the UK if he remits all of it to France. d. the remittance basis on overseas income will automatically apply. |
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An investment portfolio with a book value of £220,000 was subsequently disposed of for £248,000, without incurring a Capital Gains Tax liability. This was because
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a. inheritance tax had already been paid on the book value.
b. the portfolio contained real estate investment trust shares only. C. THE PPORTFOLIO CONTAINED GILTS AND VENTURE CAPITAL TRUST SHARES ONLY. d. the disposal was made by trustees. |
