Summary Tax for SQE1 FLK1 and FLK2

Tax
IT - % 20, 40, 45 / returns Jan 31 (Oct 31) / 37,700 / dividend% 7.5, 32.5, 38.,750 Personal Allowance
IHT - 40% / NRB 325 / RNRB 175K / 3K Allowance / PET (7y) / taper relief / CLT % 20, 25 / Relief busi 100/50 agri 100
CGT - 10, 20% / 18, 28% if residential / PRR relief / EIS / Annual Exempt Amount 12,300
Corp Tax - 19% / tax due 9m1d
VAT - % 20, 5, 0 / threshold 85K historic (last 12m) or future (30d)
SDLT - % 0, 2, 5, 10, 12 / +3% each band if second residential property


https://www.simmons-simmons.com/en/features/autumn-budget-2021/ckv9x6fay1nks0a735d2b2uyu/company-tax
ation-autumn-2021
https://www.broomconsultants.com/imgs/tpo_tax_tables_2021_2022125.pdf


Property
SDLT and Land Transaction Tax:
basis of charge in both England and Wales for:
○ residential property
○ non-residential freehold property
Value Added Tax:
basis of charge:
○ what is a taxable supply
○ standard, exempt and zero-rated supplies
reasons why a client would make an option to tax and the effect that has.
Capital Gains Tax:
basis of charge
principal private dwelling-house exemption

Wills
Inheritance Tax:
lifetime transfers - PET and CLT and exempt
transfers on death
exemptions and reliefs
scope of anti-avoidance provisions
Income and Capital Gains Tax in respect of the period of the administration of an estate:
PRs’ liability to Income Tax and Capital Gains Tax
beneficiaries’ liability to Capital Gains Tax on inherited assets

Business
Income Tax:
chargeable persons/entities (employees, sole traders, partners, shareholders, lenders and debenture
holders)
basis of charge (types of income/main reliefs and exemptions)
charge to tax: calculation and collection



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, scope of anti-avoidance provisions
Capital Gains Tax:
chargeable persons/entities (sole traders, partners, and shareholders)
basis of charge (calculation of gains/allowable deductions/main reliefs and exemptions)
charge to tax: calculation and collection
scope of anti-avoidance provisions
Corporation Tax:
basis of charge
calculation, payment and collection of tax
tax treatment of company distributions or deemed distributions to shareholders
scope of anti-avoidance provisions
Value Added Tax:
key principles relating to scope, supply, input and output tax
registration requirements and issue of VAT invoices
returns/payment of VAT and record keeping
Inheritance Tax:
business property relief




Tax Evasion Steps
Double Reasonableness Test: HMRC can set aside avoidance scheme IF in consultation with independent advisory
panel determines scheme cannot reasonably be regarded as a reasonable course of action
→ General Anti-Abuse Rule (GAAR): if proven then HMRC can make tax adjustment that is JUST &
REASONABLE


Dishonest tax evasion = 7 years jail or unlimited fine




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, Income Tax
Tax rates for Non-Savings & Taxable Income Dividend
Taxable Income Savings (nondividend %
% income)

Basic rate 20% £1 to £37,700 7.5%

Higher rate 40% £37,701 to £150,000 32.5%

Additional rate 45% Over £150,000 38.1%

Exemptions

Personal Allowance 12,570

Income limit for Personal Allowance 100,000
before taper

NO Personal Allowance if net income 125,140
exceeds

Personal Allowance tapers by half for £1 for every £2
anyincome over 100K

Marriage Allowance 1,260 as taxable credit (20%) = so
reduces races by 252

Personal Savings Allowance - savings
income that will be taxed at 0%
- For basic rate payer 1,000
- For higher rate payer 500
- For additional rate payer 0

Ind Savings Account (ISA) - deduct 20,000 is tax free
when cacl net income any income in
cash, stocks, shares, innovative finance,
lifetime ISA

Dividend Allowance - dividend income 2,000
amount that will be taxed at 0%

Employment

EE threshold for ER to retain tax 184/week

Payment and FPS to HMRC 22nd each month

Register for Self-Assessment w/in 3m of trading

Submit Self Assessment tax return paper Oct 31 +
online Jan 31

2 payments for Self Assessment Jan 31 in tax year +




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