Show Survey for Run

What is the treatment of the cost attributable to trees on land purchased by a dealer, according to S156 Income Tax (Trading and Other Income) Act 2005 and S134 Corporation Tax Act 2009?

The cost is fully taxable.

The cost attributable to trees is disregarded in the computation of profits.

The cost is deductible as an expense.

None of the above

How are profits or gains from the occupation of commercial woodlands treated for tax purposes?

They are fully taxable at the standard rate.

They are subject to Capital Gains Tax.

They are wholly outside the scope of Income or Corporation Tax.

They are taxed only if they exceed a certain threshold.

Under what conditions can woodland expenses be charged to income?

If they exceed the income for the year.

Regardless of any conditions, they are always chargeable.

If they are related to the income beneficiary’s receipts.

They cannot be charged to income under any circumstances.

What specific relief is available for transfers of woodlands on death under IHTA84/S125?

Full exemption from Inheritance Tax.

Exclusion of the value of trees or underwood from the estate value for tax purposes.

Taxation at a reduced rate.

Deferral of tax until the estate is settled.

When is a disposal of trees or underwood not considered a chargeable occasion for Inheritance Tax purposes?

Always chargeable.

When it is between spouses or civil partners.

When the trees are sold commercially.

When the disposal is part of a business transaction.

What happens to the deferred charge on disposal of trees or underwood if there has not been a disposal between two deaths?

The deferred charge doubles.

The deferred charge is extinguished by the chargeable transfer on the later death.

It is carried forward indefinitely.

None of the above.