Taxation: Finance Act 2020

Front Cover
Half Title Page
Title Page
Copyright Page
Contents
Preface
Acknowledgements
Summary of tax data
Part 1 Income Tax and National Insurance
	1 Introduction to the UK tax system
		UK taxes
		Sources of tax law
		The tax year
		Structure of HM Revenue and Customs
		Administration of the tax system
		Self Assessment
		Appeals
		Tax evasion and avoidance
		Making Tax Digital
		The HMRC Charter
	2 Introduction to income tax
		Taxable persons
		Classification of income
		Exempt income
		Structure of an income tax computation
		Married couples and civil partners
		Rates of income tax for 2020-21
		Income taxed at source
		Savings income
		Dividend income
		Allocation of the personal allowance
	3 Personal allowances
		Personal allowances for 2020-21
		The personal allowance
		Blind person's allowance
		Tax reducers
		Married couple's allowance
	4 Payments and gifts eligible for tax relief
		Payments and gifts deductible from total income
		Eligible interest payments
		Annual payments
		Gifts of shares or property to charity
		Payments which are tax reducers
		Maintenance payments
		Loans used to purchase a life annuity
		Gifts of pre-eminent property to the nation
		Gift Aid
	5 Income from property
		Definition of property income
		Basis of assessment and allowable expenditure
		Capital expenditure
		Losses
		Lease premiums
		"Rent-a-room" relief
		Furnished holiday lettings (FHL)
	6 Income from savings and investments
		Interest received
		Dividends received
		Tax-efficient investments
		Individual Savings Accounts
		Enterprise Investment Scheme
		Venture Capital Trusts
		Child Trust Funds
		Income from trusts and settlements
		Miscellaneous income
	7 Income from employment (1)
		Employment and self-employment
		Basis of assessment
		Employment income
		Non-taxable employment income
		Deductible expenses
		Termination payments
		The PAYE system
		Construction industry scheme
		Employee incentive schemes
	8 Income from employment (2)
		Benefits in kind
		Living accommodation
		Cars provided for private use
		Beneficial loans
		Salary sacrifice
	9 Income from self-employment: Computation of income
		The badges of trade
		The calculation of trading profits
		Deductibility of expenditure
		Disallowed expenditure
		Allowable expenditure
		Adjustments relating to income
		Trading income allowance
		Cash basis and simplified expenses
	10 Income from self-employment: Basis periods
		The current year basis
		Commencement of trade
		Cessation of trade
		Change of accounting date
		Averaging of trading profits for farmers and creative artists
	11 Income from self-employment: Capital allowances
		Eligible expenditure
		Chargeable periods
		Plant and machinery
		Capital allowances on plant and machinery
		Writing down allowance
		Annual investment allowance
		First year allowance
		Balancing allowances and charges
		Non-pooled assets
		Allowances on cessation of trade
		Structures and buildings allowances (SBAs)
		Miscellaneous capital allowances
	12 Income from self-employment: Trading losses
		Relief for trading losses
		Carry-forward trade loss relief
		Trade loss relief against total income
		Early trade losses relief
		Terminal trade loss relief
		Post-cessation trade relief
		Transfer of a business to a company
		Losses on shares in unlisted trading companies
		Limit on income tax reliefs
	13 Income from self-employment: Partnerships
		Principles of partnership taxation
		Notional profits and losses
		Change in partnership composition
		Non-trading income
		Trading losses
	14 Pension contributions
		Registered pension schemes
		Tax relief for contributions by scheme members
		Tax relief for contributions by employers
		Annual allowance charge
		Lifetime allowance charge
	15 Payment of income tax, interest and penalties
		Payment of income tax
		Late payment penalties
		Interest on overdue income tax
		Interest on overpaid income tax
		Penalties
	16 National Insurance contributions
		Class 1
		Class 1A
		Class 1B
		Class 2
		Class 3
		Class 4
		Annual maximum contributions
		Review questions (Set A)
Part 2 Capital Gains Tax
	17 Introduction to capital gains tax
		Chargeable persons
		Chargeable assets
		Chargeable disposals
		Basis of assessment
		Rates of CGT
		Relief for capital losses
		Relief for trading losses
		Administration of CGT
	18 Computation of gains and losses
		Layout of a CGT computation
		Disposal value
		Allowable expenditure
		Part disposals
		Assets with negligible value
		Assets held on 31 March 1982
	19 Chattels and wasting assets
		The chattels exemption
		Chattels disposed of at a loss
		Part disposals of chattels
		Wasting chattels
		Wasting assets
		Leases
	20 Shares and securities
		The share matching rules
		The Section 104 holding
		Bonus issues
		Rights issues
		Capital distributions
		Takeovers
		Gilts and qualifying corporate bonds
	21 Principal private residence
		Principal private residence
		Partial exemption
		Deemed residence
		Letting relief
		Business use
	22 CGT reliefs
		Damaged assets
		Destroyed assets
		Replacement of business assets
		Gift of business assets
		Transfer of a business to a limited company
		Business asset disposal relief
		Reinvestment into EIS shares
		Loans to traders
		Review questions (Set B)
Part 3 Corporation Tax
	23 Introduction to corporation tax
		Scope of corporation tax
		Accounting periods
		Taxable total profits
		Trading income
		Income from property
		Income from non-trading loan relationships
		Dividends received
		Relief for charitable donations
		Loan relationships
		Long periods of account
		Research and development tax relief
		Intangible fixed assets
	24 Corporate chargeable gains
		Chargeable disposals and chargeable assets
		Basis of assessment
		Computation of gains and losses
		Indexation allowance
		Assets held on 31 March 1982
		The rebasing election
		Assets acquired before 6 April 1965
		Disposals of shares or securities
	25 Computation and payment of the corporation tax liability
		Corporation tax financial years
		Rates of corporation tax
		Due date of payment
		Accounting for income tax deducted at source
		Shadow ACT
		Self Assessment
		Interest on underpaid and overpaid corporation tax
		Penalties
	26 Corporation tax losses
		Relief for trading losses
		Carry forward of trade loss relief
		Unrelieved qualifying charitable donations
		Trade loss relief against total profits
		Repayments of corporation tax
		Anti-avoidance legislation
		Choice of loss relief
		Non-trading losses
		Restriction on deduction of carried-forward losses
	27 Close companies and investment companies
		Close companies
		Definition of a close company
		Exceptions
		Consequences of close company status
		Companies with investment business
		Choice of business medium
		Incorporation
	28 Groups of companies and reconstructions
		Related 51% group companies
		Group payment arrangements
		Transfer pricing
		75% groups
		Group relief
		Transfer of chargeable assets within a group
		Capital losses
		Consortia
		Corporate interest restriction
		Company reconstructions
		Review questions (Set C)
Part 4 Miscellaneous
	29 Value added tax (1)
		The principle of VAT
		Taxable persons
		Taxable supplies
		Exempt supplies
		Reduced rate supplies
		Zero rate supplies
		The value of a supply
		Imports and exports
		Registration
		Deregistration
	30 Value added tax (2)
		Accounting for VAT
		The tax point
		Tax invoices
		Accounting records
		Special schemes
		Retail schemes
		Bad debts
		Non-deductible input tax
		Partial exemption
		Administration of VAT
		Penalties, surcharges and interest
	31 Inheritance tax
		Transfers of value
		Exempt transfers
		Potentially exempt transfers (PETs)
		IHT payable on chargeable lifetime transfers
		IHT payable on death
		Valuation
		Business property relief
		Agricultural property relief
		Administration of IHT
	32 Overseas aspects of taxation
		Residence and domicile
		Income tax - general rules
		Double taxation relief (DTR)
		Income from employment
		Trading income
		Income from property and investments
		Capital gains tax - general rules
		Inheritance tax - general rules
		Corporation tax - general rules
		Controlled foreign companies
		Transfer pricing
		Double taxation relief for companies
		Diverted profits tax
		Digital services tax
		Review questions (Set D)
Part 5 Answers
	Answers to exercises
	Answers to review questions
Index
Back Cover