Understanding Taxation
Income tax bands and rates, IHT nil-rate band and 7-year rule, CGT annual exempt amount, SDLT thresholds, and NIC classes.
Understanding Taxation
The UK tax system funds public services and redistributes income. Advisers must understand key taxes, thresholds and rates as they directly affect financial planning recommendations.
True or false?
The UK tax system funds public services and redistributes income
Essential Facts about Tax
Which term matches: "Paid directly to HMRC (income tax, CGT, IHT)"
What does "Indirect tax" mean?
Type the term that means: "Paid directly to HMRC (income tax, CGT, IHT)"
Match each term in "Essential Facts about Tax" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — Higher earners pay a higher percentage (income tax)
183 Day Rule
National Insurance Contributions (NICs)
Which term matches: "8% on earnings £12,570 – £50,270; 2% above"
What does "Class 1 (employers)" mean?
Type the term that means: "8% on earnings £12,570 – £50,270; 2% above"
Match each term in "National Insurance Contributions (NICs)" to its meaning
Tap a term, then tap its matching definition.
Capital Gains Tax (CGT)
Which term matches: "£3,000 (2024/25)"
What does "Basic rate taxpayers" mean?
Match each term in "Capital Gains Tax (CGT)" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — 20% (24% on residential property)
Inheritance Tax (IHT)
Which term matches: "£325,000"
What does "Residence nil-rate band (RNRB)" mean?
Type the term that means: "£325,000"
Match each term in "Inheritance Tax (IHT)" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — £500,000 per person; £1 million per couple
Corporation Tax
Which term matches: "25% (for profits over £250,000)"
What does "Small profits rate" mean?
Fill in the blank
______ — 19% (for profits up to £50,000)
Stamp Duties
Which term matches: "On property purchases in England/NI"
What does "SDRT" mean?
Type the term that means: "On property purchases in England/NI"
Match each term in "Stamp Duties" to its meaning
Tap a term, then tap its matching definition.
What the exam tests
Income tax bands and rates, IHT nil-rate band and 7-year rule, CGT annual exempt amount, SDLT thresholds, and NIC classes.
True or false?
Income tax bands and rates, IHT nil-rate band and 7-year rule, CGT annual exempt amount, SDLT thresholds, and NIC classes
Additional notes
Which term matches: "20% (£12,571 – £50,270)"
What does "Higher rate" mean?
Type the term that means: "20% (£12,571 – £50,270)"
Match each term in "Additional notes" to its meaning
Tap a term, then tap its matching definition.
Quick recap
Lock in the essentials before moving on.
True or false?
What is the IHT nil-rate band? — £325,000
True or false?
After how many years does a potentially exempt transfer become fully exempt from IHT? — 7 years
True or false?
What is the CGT annual exempt amount? — £3,000