CHILD BENEFIT TAX CHARGE

  • Created by: Millie
  • Created on: 22-04-18 12:54
WHO IS INCOME TAX CHARGED TO?
Individuals, Trustees and Personal Representatives (Executors and Administrators)
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BLIND PERSON'S ALLOWANCE
Increases the personal allowance by £2,320 and can be transferred to the taxpayers spouse/civil partner
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GIFT AID
Basic rate relief at source (20%) and higher/additional rate relief by extending the basic and higher rate bands by the gross donation
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MARRIED COUPLES ALLOWANCE
For older married couples/civil partners where one was born before 6 April 1935 and is claimed by the spouse who has the higher net income. The amount is £8,445 so the tax reducer is £845
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MARRIAGE ALLOWANCE
A spouse may transfer up to 10% of their personal allowance to their partner if the MCA is not claimed, the transferee must be a basic rate tax payer and relief is given at the basic rate
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CHILD BENEFIT TAX CHARGE
£1,076 for the oldest child and £712 for each other child. For income over £50k, 1% of the benefit is repayable for every £100 of income. If both partners earn over 50k, the partner with the higher income is liable for the charge.
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INTEREST PAYMENTS
Deductible from total income where a loan is used for P&M purchases in a partnership, P&M purchases for self employment, to buy an interest in a close company (be a manager/director or own more than 5% of shares)
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Other cards in this set

Card 2

Front

BLIND PERSON'S ALLOWANCE

Back

Increases the personal allowance by £2,320 and can be transferred to the taxpayers spouse/civil partner

Card 3

Front

GIFT AID

Back

Preview of the front of card 3

Card 4

Front

MARRIED COUPLES ALLOWANCE

Back

Preview of the front of card 4

Card 5

Front

MARRIAGE ALLOWANCE

Back

Preview of the front of card 5
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