Free ACCA Taxation (TX) Flashcards

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What are the 3 different categories of Total Income included on

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Name the sources of income included in each category

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What is the basis of assessment for employment income

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What is the basis of assessment for a continuing source of trading income

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What is the normal basis of assessment to apply to property income and what option is available to the taxpayer and when is that option compulsory

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What basis of assessment applies to interest income

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What basis of assessment applies to dividend income.

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What deductions are made from Total Income to compute Net Income

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What is the difference between Net Income and Taxable Income

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In what order are the deductions from both Total and Net Income deducted

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What types of interest income are exempt from Income Tax

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In what order are the categories of Taxable Income charged to Income Tax

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What is the difference between Tax Liability and Tax Payable

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How do you calculate the adjusted net income (ANI) of the taxpayer

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Why is ANI computed

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What is the tax treatment of a gift aid payment in preparing the Income Tax computation

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Are pension contributions paid by an individual treated the same way for tax purposes as gift aid payments

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If a husband and wife jointly own a property that is let out

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What is the tax treatment of mortgage (loan) interest paid by a taxpayer

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What conditions must be satisfied for a property to be treated as a furnished holiday letting

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Explain how the transferrable amount of the PA of £1,250

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In what circumstances would the election to transfer the transferrable amount

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Describe what tax relief would be available if a trader paid

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Describe what capital allowances would be available if an unincorporated trader

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An unincorporated trader has always been profitable and prepared accounts to 31 December

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How should the adjusted trading profit or loss of a partnership be divided

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How should each partner’s share of adjusted trading profit then be assessed on the partners.

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If an employee has the use of job related accommodation what assessable benefit arises in relation to the property

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What is job related accommodation

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What information about a car is needed to be able to determine the assessable benefit

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What reduction is made to the assessable fuel benefit if the employee contributes towards the cost of fuel for private use.

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If an employee is provided by an employer with the use of an asset

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What categories of NIC are payable by the self employed

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What categories of NIC are suffered by an employee

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What categories of NIC are suffered by employers

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In what circumstances will an Annual Allowance (AA) Charge arise on a personal taxpayer

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In what circumstances must a chargeable gain be computed

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What makes a company UK resident

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What are the consequences of a company being treated as UK resident

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What is a company’s period of account

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What is a financial year in corporation tax and what is its purpose

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For what period is a corporation tax computation prepared

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If a company is not large by when must it pay its corporation tax

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How does a large company pay its corporation tax

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How do you determine if a company is large

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When does an accounting period start

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When does an accounting period end

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What is included in the computation of “Total Profits” on the corporation tax computation

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What is the difference between “Total Profits” and “Taxable Total Profits”

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In the adjustment of trading profit for a company what is the treatment of motor expenses

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What is the tax treatment of loan interest payable on a loan taken out by a company

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If a car is provided by a company for the business and private use of the owner manager of

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What tax relief, if any, is available to a company when it buys business premises

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For corporation tax purposes what happens when a company changes its accounting date by preparing accounts for a 15 month period

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If a company incurs a trading loss for an accounting period,

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Can a company choose to use only part of a loss when making a claim

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Can a company ever carry back a loss for more than 12 months

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How can a company use a capital loss

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Explain the tax issues that arise if both subsidiaries incur trading losses in the current period

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A company has 2 subsidiary companies, one wholly owned and the other 60% owned.

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Explain the tax issues that arise if the parent company incurs a capital loss while both subsidiaries realise chargeable gains in the current period

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If company A owns 80% of company V, which in turn owns 80% of company FC,

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If company A owns 75% of company V, which in turn owns 75% of company FC,

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How does the calculation of a chargeable gain for a company differ from how a gain is computed for an individual

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If a net capital loss arises on disposals made by a single company in an accounting period, what happens to the net capital loss

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When a company disposes of shares in another company what is the order in which the shares sold are matched with acquisitions.

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What difference arises in the tax treatment of shares acquired by a company in the form of a bonus issue and a rights issue

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For VAT purposes what types of supply may be made by a trader

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What is the difference between making zero rated supplies and exempt supplies

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Based on past turnover in what circumstances must a trader compulsorily register for VAT

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Based on past turnover by what date must a company notify HMRC of its requirement to register for VAT and from when will it be registered

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Based on future turnover in what circumstances must a trader compulsorily register for VAT

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Based on future turnover by what date must a company notify HMRC of its requirement to register for VAT and from when will it be registered

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Why might a trader voluntarily register for VAT

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In what circumstances can input VAT incurred prior to VAT registration be recovered by a trader

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In what circumstances must a trader deregister

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In what circumstances would a disposal of the assets and trade of a business be outside the scope of VAT

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In relation to the supply of goods or services, what is the significance of the tax point

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What date will determine the tax point

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Is output tax charged on the sales figure before or after deducting a prompt payment discount

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Is relief available for the output tax on a sale when the amount of the debt cannot be collected

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For what periods of time may a VAT return be submitted

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In what circumstances may a trader apply the cash accounting scheme

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In what circumstances may a trader apply the annual accounting scheme

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What is the VAT treatment of sales of goods made to customers resident overseas

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Explain how to deal with the CGT implications of a gift made by an individual of a chargeable asset

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If an individual has a mix of both gains and losses arising

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In what circumstances does a chargeable disposal arise for an individual

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What tax rates may apply to an individuals’ taxable gains

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Capital losses and AEA are deducted from the gains made by a taxpayer in the tax year

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By what date must the CGT liability for the 2021/22 tax year be paid assuming no disposals of residential property

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When must a payment on account be made on the disposal of a residential property

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How is the payment on account calculated

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Assuming a taxpayer made no disposals of residential property or assets qualifying for either

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If an individual sells a chargeable asset to his daughter for half of its market value of

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On what basis are chargeable assets transferred between spouses or civil partners

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If a taxpayer disposes of 25% of a plot of land originally purchased at a total cost of

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How would you compute a chargeable gain arising on a disposal of a painting for sale proceeds of £7,500

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When an individual disposes of shares in a company what is the order in which the shares sold are matched with acquisitions.

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When an individual sells shares in a company what conditions need to be satisfied for the sale to qualify for business asset disposal relief

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When an individual sells shares in a company what conditions need to be satisfied for the sale to qualify for investors’ relief

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When land and buildings are sold at a gain by a business what conditions must be satisfied for the gain to be fully deferred by a claim for rollover relief

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How is the gain deferred on a claim for rollover relief

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What would happen if the replacement asset was fixed plant and machinery to be used in the trade

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What assets qualify for gift relief when an individual makes a gift of that asset

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When an individual sells his / her private residence, what periods of non-occupation of the

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In what circumstances will IHT become chargeable

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How do you compute a transfer of value

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What rates of IHT may be chargeable on the death estate

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In what circumstances can an IHT charge of 40% made on a lifetime transfer made within 7

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What rate of tax above the nil rate band is chargeable on a transfer of value made in lifetime into a discretionary trust and who pays the tax where n

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What exemptions may be deducted from a lifetime transfer of value in computing the chargeable transfer figure

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What other exemptions are available to fully exempt a lifetime transfer

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What are the CGT implications of a taxpayer making a gift in lifetime to his daughter

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What are the IHT implications of the above transfer