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March 22, 2015 at 4:41 pm
4400×100/80 is the gross contribution since the pension provider contributes 20%
March 1, 2015 at 3:52 am
For the tax year 2014–15 Adam has a salary of £40,000, and during the year he made net personal pension contributions of £4,400. On 15 June 2014 Adam sold an antique table and this resulted in a chargeable gain of £17,500.
Adam’s taxable income is £30,000 (40,000 less the personal allowance of 10,000). His basic rate tax band is extended to £37,365 (31,865 + 5,500 (4,400 x 100/80)), of which £7,365 (37,365 – 30,000) is unused.
Does anyone can tell me how come this 100/80 pls?
March 22, 2015 at 5:23 pm
It is the standard rate to be applied when calculating charitable donation and building society interest.for instance if the BSi is £2000.You need to gross it up by multiplying 2000 by 100/80=2500 to become your Non savings income and 20% *2500=500 wiil be in the column of tax suffered.
But if it is charitable donation ,u only calculate for instance 1000*100/80 only .
Now this will increase the basic band rate from 32865 +200 and the second effect is that will reduce the tax liability of the individual.
I hope this help
March 23, 2015 at 2:19 am
Thank u ade
March 1, 2015 at 3:49 am
Does anyone can tell me come this 100/80 pls?
September 8, 2014 at 12:13 am
What is the order of utilisation of an unrelieved loss i.e loss c/f and the loss in the tax year?
Is there any year limit in which unrelived loss can be carried forward?
September 2, 2014 at 12:41 pm
Is there any limit in the number of years for which you can bring forward unused capital losses?
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