Search results for "R03"
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Understanding How the Letting Exemption is Applied
We all know that when we sell our house, it is exempt from capital gains tax (CGT) if it’s been our main residence. If we can’t claim it as such, then any gain we make on disposal will be subject to CGT. Read on to learn about the letting exemption and how it is applied – useful reading for those […] -
More Changes on the Horizon for Landlords
Learn about the changes that will affect buy-to-let landlords from April 2020. This information will be of interest to those studying for CII exams on taxation, R03, R06, AF1 and AF5. So last year, landlords took a blow when the ability to offset mortgage interest against rental income was reduced. Prior to April 2017, interest paid on mortgage loans could […] -
How to Calculate the January Tax Bill
Read on to view an example that illustrates how a self-employed person would calculate the tax payment due on 31st January 2019. This is particularly useful for those studying for the CII R03, R06, AF1 and AF5 exams. THIS ARTICLE IS RELEVANT TO EXAMINABLE TAX YEAR 2018/19. As we head towards December and our thoughts move increasingly towards tinsel, turkeys […] -
How the 14-Year-Rule for Lifetime Gifts Works
We’ve all heard of the 14-Year Rule for Lifetime Gifts, but how many know (remember?) how it works? This article examines the impact on inheritance tax liability when this rule is being applied – useful for CII R03, R06, AF1 and AF5 exam revision. We know how a Potentially Exempt Transfer (PET) works: make a PET, live 7 years, and […] -
A Clever Way of Reducing the Child Benefit Tax Charge
This article shares with you an example where a couple, who are receiving the child benefit for their two children, are able to reduce their child benefit tax charge and receive an effective tax relief of just over 60%. -
How to Gross Up Chargeable Lifetime Transfers When the Donor Pays the Inheritance Tax
A question that has come up in J02, R03 and AF1 is the grossing up of chargeable lifetime transfers where the donor (also called the settlor or transferor) pays the tax on transfers over the nil rate band. In this article, we share with you a couple of examples that will help with your CII exam revision. THIS ARTICLE IS […] -
What are the differences between Sole Trader and Limited Company?
A friend asked me whether she should set up as a sole trader or as a limited company for her new business venture. A difficult question to answer and one that has been asked of small businesses for many years, so what are the differences? This is useful reading for those who are studying for any of the CII AF5, […] -
Everyone should have a will
Everyone should have a will, yet the fact is that only 1 out of 3 of us actually gets ’round to it. And a fair number of those are picking up a pack from a local stationery shop and doing it themselves. Perhaps okay if you have fairly simple arrangements, but for those of us who have children from previous […] -
Child Benefit Tax Charge – CII R03 or AF1
The high income Child Benefit Tax Charge is a tax charge for individuals with total taxable income over £50,000 who are in receipt of Child Benefit. The charge gradually claws back up to 100% of the benefit as earnings increase over £50,000. The charge is collected via Self-assessment. The tax charge is 1% of the child benefit for every £100 […] -
Top Tip – Child Benefit and Pension contributions continued – CII R03, J01 or AF1
Last time, I started off the topic of Child Benefit and what could be done if someone was in danger of losing some/all of it – I mentioned pension contributions and since then I’ve been asked to expand on this point for someone affected this year, so here goes. Jo was our parent from last time – she earns £54,000 […]