Tax Compliance (UK) Flashcards

For UK capital gains tax, the annual exempt amount for individuals in 2024/25 is:

Answer: £3,000

The CGT annual exempt amount has been progressively reduced: from £12,300 (2022/23), to £6,000 (2023/24), to £3,000 from 2024/25 onwards.

Which of the following describes a 'connected person' for UK CGT purposes?

Answer: A spouse, civil partner, relative, or spouse of a relative

For CGT, connected persons include spouses/civil partners, lineal ancestors and descendants, siblings, and spouses of relatives. Transactions with connected persons are deemed at market value.

The main rate of stamp duty land tax (SDLT) on residential property purchases between £250,001 and £925,000 is:

Answer: 5%

The SDLT rate on residential property is 5% on the portion of the purchase price between £250,001 and £925,000 (0% below £250,000, 10% between £925,001 and £1.5m, 12% above).

Under the UK's Corporation Tax self-assessment system, the filing deadline for the CT return is:

Answer: 12 months after the end of the accounting period

The corporation tax return (CT600) must be filed within 12 months of the end of the accounting period. Payment of tax (for small companies) is due 9 months and 1 day after year end.

For VAT purposes, the registration threshold in 2024/25 is:

Answer: £90,000

The UK VAT registration threshold was increased to £90,000 from 1 April 2024. Businesses with taxable turnover exceeding this threshold in a 12-month period must register for VAT.

A capital loss from the disposal of a chargeable asset can be:

Answer: Carried forward indefinitely against future capital gains only

Capital losses can only be set against capital gains, not income. Excess losses are carried forward indefinitely against future capital gains of the same taxpayer.