INCOME TAX

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  • Created by: domlpool
  • Created on: 05-02-21 03:46
ADDITIONAL PAYMENTS
A PAYMENT CAPABLE OF RECURRANCE MADE UNDER A BINDING LEGAL OBLIGATION WHICH IS PURE INCOME PROFIT IN THE HANDS OF THE RECIPIENT
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AFTER 15TH MARCH 1988
WILL FALL OUTSIDE TAX REGIME
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EXCEPTION
COVANANTED PAYMENTS TO A CHARITY CAPABLE OF EXCEEDING 3 YEARS STILL HAVE A TAXATION EFFECT. LARGELY AMELIORATED BY GIFT AID.
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MAIN EFFECTS
PAYER WILL DEDUCT BASIC RATE TAX FROM THE PAYMENT
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THE PAYER WILL HAVE TO ACCOUNT FOR FOR THE BASIC RATE TAX BUT THE GROSS PAYMENT WILL BE TREATED AS A CHARGE ON INCOME
THE PAYEE WILL BE ASSESSED TO TAX ON THE GROSS SUM BUT WILL HAVE BENEFIT OF A TAX CREDIT FOR THE TAX ALREADY DEDUCTED. AS THE RECIPIENT IS A CHARITY AND THEREFORE EXEMPT CHARITY WILL BE ABLE TO CLAIM BACK SUM DEDUCTED.
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Other cards in this set

Card 2

Front

WILL FALL OUTSIDE TAX REGIME

Back

AFTER 15TH MARCH 1988

Card 3

Front

COVANANTED PAYMENTS TO A CHARITY CAPABLE OF EXCEEDING 3 YEARS STILL HAVE A TAXATION EFFECT. LARGELY AMELIORATED BY GIFT AID.

Back

Preview of the back of card 3

Card 4

Front

PAYER WILL DEDUCT BASIC RATE TAX FROM THE PAYMENT

Back

Preview of the back of card 4

Card 5

Front

THE PAYEE WILL BE ASSESSED TO TAX ON THE GROSS SUM BUT WILL HAVE BENEFIT OF A TAX CREDIT FOR THE TAX ALREADY DEDUCTED. AS THE RECIPIENT IS A CHARITY AND THEREFORE EXEMPT CHARITY WILL BE ABLE TO CLAIM BACK SUM DEDUCTED.

Back

Preview of the back of card 5

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