What is the system called where an employer deducts income tax from an individual’s pay and pays it to HMRC?
Pay As You Earn
What is the primary purpose of paying National Insurance Contributions (NICs)?
To pay for contributory State benefits, such as the State Pension.
What is the Class 1 National Insurance rate for employees on earnings between £242 and £967 per week in 2025/26?
8
What is the Class 1 National Insurance rate for employees on earnings in excess of £967 per week in 2025/26?
2
What is the annual exempt amount for Capital Gains Tax (CGT) in the 2025/26 tax year?
3,000
Can the annual exempt amount for Capital Gains Tax (CGT) be carried forward to future tax years if unused?
No
What is the rate of Capital Gains Tax for chargeable gains that fall within an individual’s basic rate income tax band?
18
What is the additional nil rate band available on death to offset against the value of residential property transferred to a direct descendant in 2025/26? (VALUE)
175,000
The rate of IHT is reduced to 36% if an individual leaves at least what percentage of their estate to charity on death?
10%
What is the value of the standard Inheritance Tax (IHT) nil rate band in 2025/26?
325,000
What is the standard rate of Inheritance Tax (IHT) charged on the value of an estate above the available nil rate band?
40%
Inheritance Tax (IHT) is payable on the value of an individual’s assets on death and on certain _____ of assets made during their lifetime.
transfers
What is the rate of Capital Gains Tax for chargeable gains that fall in excess of an individual’s basic rate income tax band?
24
A lifetime gift made to another individual, which only becomes chargeable to IHT if the donor dies within seven years, is known as a _____.
Potentially Exempt Transfer (PET)
A lifetime gift placed into a discretionary trust, which may trigger an immediate IHT liability, is known as a _____.
Chargeable Lifetime Transfer (CLT)
What is the IHT annual exemption for gifts per individual per tax year?
3,000
