Section 1 Mocks

Zero rated goods

If a businesses input VAT exceeds their output VAT the business can reclaim the difference

This often happens when the business sells zero rated goods

Company car tax

Rate of emissions per kilometre makes a % that is applied to price of car = annual taxable amount

• Same process for fuel

Personal contributions up to £5k can be taken off list price

REIT, AIM, EIS & VCT CGT charge

VCT - None

EIS - None after 3 years

REIT - Yes

AIM - If not under EIS then yes

Profit of £9k for self employed person. How much class 2 NIC do they pay

Nothing as it’s not mandatory

Could choose to pay class 2 but would only be needed if profits were less than the small profits threshold (£7105)

He will receive NIC credits for the year based on his profit level

He will also not be due class 4 as his profits don’t exceed profits threshold of £12,570

Criteria to qualify for business asset disposal relief

• Owned shares for 2 years prior to disposal

• Held at least 5% of issuer share capital

Discretionary Trust Mechanics

Trustees have already paid tax on income at trust rate (45%)

When Income is distributed it comes with a 45% tax credit (as 45% tax already paid)

Then calculate your own marginal rate

• If your own rate is lower than 45% can reclaim the excess

An ART paying £500 to charity will have to pay how much

£400

Gift aid declaration allows you to claim relief at Basic rate (20%)

£500 - 20% =£400.00