Tax Quiz – Inheritance Tax
1.Income Tax was first introduced in Britain in 1799 to :
a) Finance war
b) Pay for a royal wedding
c) Fight poverty
2. Who has NOT served time in jail over tax fraud?
a) Tennis player Boris Becker
b) Jockey Lester Piggott
c) Gangster Al Capone
d) Comedian Ken Dodd
e) Actress Sophia Loren
3. Assuming no other assets and no PETS, what is the Inheritance Tax due on a farm let since 1993 with an open market value of £2m and an agricultural value of £1.7 million.
4. How much can you earn a year before you start paying income tax?
a) £10,600
b) £11,850
c) £12,570
d) £11,750
5. Which of the following is exempt from VAT?
a) Goods purchased over the internet from overseas
b) Domestic fuel
c) Agricultural produce
d) Museums
6. Who pays class 4 National Insurance contributions?
a) Employees
b) Employers
c) Self employed
d) Anyone who wants to maintain their NI standing
7. Henry VII was always thinking up ways to fill the state coffers and he was aided by his Lord Chancellor and Archbishop of Canterbury, John Morton. Morton came up with a devious ‘Catch 22’ tax method, called Morton’s …?
a) Saw
b) Pence
c) Fork
d) Levy
8. On March 31, 1990, at least 200,000 people engaged in violent protest in London marched to Downing Street, to campaign against a new tax. What kind of tax was it?
a) Poll Tax
b) Value Added Tax
c) Betting Tax
d) Income Tax
9. What are not eligible for a Herd Basis election?
a) cattle
b) sheep
c) horses
d) poultry
10. Who will get the more beneficial personal allowance for Income Tax?
a) Minor, under 18 years
b) Blind person
c) Person over 65
d) Disabled person
11. What total capital allowances will be available for a business with a farm vehicle purchased for £320,000 in January 2022 (accounting period ending 31st March) with a balance brought forward on Plant and Machinery Pool of £5,000?
a) £106,000
b) £58,500
c) £320,900
d) £900
12. Who provides a farm value to HMRC for tax purposes?
a) A chartered surveyor engaged by the tax payer
b) Her Majesty’s Inspector of Taxes
c) The District Valuer
d) A chartered surveyor engaged by HMRC.
13. What is the written down value of an asset purchased for £1,000 with 20% depreciation, straight line basis, after 3 years?
14. What is the written down value of an asset purchased for £1,000 with 20% depreciation, reducing balance basis, after 3 years?
15. The proceeds of prostitution are subject to Income Tax.
True / False
16. Tsar Peter the Great (1672-1725 – Peter I) imposed a tax on …
a) Windows
b) Embroidery
c) Troikas
d) Beards
17. What is another name for Capital Gains Tax gift relief?
a) Hold over relief
b) Replacement relief
c) Roll over relief
18. What is the more commonly used name for the Capital Gains Tax relief for the replacement of business assets?
a) Hold over relief
b) Replacement relief
c) Roll over relief
19. From which tax is the gain made on the sale of your main (principal private) residence exempt?
a) Income Tax
b) Inheritance Tax
c) Capital Gains Tax
d) Stamp Duty Land Tax
20. Where profits are above what percentage of those of the following/preceding year will farmers’ profit averaging not be available?
a) 65%
b) 70%
c) 75%
d) 80%
