Name three criteria used when evaluating a tax system. ⢠Progressive. ⢠Regressive. ⢠Proportional. What is Capita
TAX
WEEK
11–15 JUNE 2018
Personal tax
What is Capital Gains Tax?
A tax on any gain on the disposal of an asset, such as shares in a business, a piece of furniture or other personal or business asset.
BC4650518PerTax – PDF
FLASH CARDS
Name three criteria used when evaluating a tax system.
• Progressive • Regressive • Proportional
What is the definition of tax avoidance?
What is the definition of tax evasion?
Using legitimate tax rules and allowances to minimise tax paid.
Using illegal methods to avoid paying tax, including not declaring income and making false statements.
What are personal allowances?
The amount that a person can earn before they start paying tax.
Name two different pension schemes.
• Occupational pension • Private pension
What is the part disposals rule?
What are potentially exempt transfers?
Apportion the original cost of the whole asset using the proceeds of the disposal against the current value of the whole asset (both the disposal and the retained portion).
Lifetime transfers which will become exempt if the donor lives for seven years after the date of the transfer.
Identify three exempt transfers.
Which of these benefits is exempt from tax: interest-free loan under £10,000 or a bonus of £10,000 or both?
• • • •
Transfers to a spouse or civil partner Transfers to charities or political parties Transfer of land to housing associations £ 3,000 of gifts per year, small gifts up to £250 per person, marriage gifts (with limits), regular gifts out of income • Payments to help with living costs of specified persons.
