1. avatar says

    Hi! BPP revision kit F6 Question 8.2. I cannot understand how they came up with the answer.
    Qn: In the tax year 2014/15 Claudio has taxable income (after deduction of his P A) consisting of GBP1,000 of non-savings income and GBP2,500 of savings income. What is Claudio’s income tax liability for the tax year 2014/15? The answer is GBP 512 but I get GBP.700. How is GBP512 arrived at? The answer in the book does not help:(
    1000@20% =200
    Tax liability =512
    Can someone please explain the logic in the suggested answer?

    • avatar says


      It seems the main difference between your answer of 700 and the books answer of 512 is that you forgot the fact that savings income up to 2880 is taxed at 10%(called the starting rate)(This is for savings income only). This is only if the non savings income is less than 2880.
      So in this case the non savings income is only 1000, so while that is still taxed at the basic 20% rate, it means that the remainder of the savings income up to 2880 is taxed at the starting rate of only 10% (so 2880-1000=1880 would be taxed at 10%) and then any further savings income above that amount would be taxed at a basic rate of 20%
      (2500(total savings income)-1880(the savings income we already taxed at 10%)=620(the remaining savings income which must now be taxed at the basic rate of 20%))

      If you do that, you’ll arrive at the right answer. I hope I was of help. Read chapter 2, section 2.5 of the course notes where they briefly touch on this.

      All the best :)

  2. Profile photo of dederi says

    When you were checking a recent tax computation from HMRC you notice that they have made an error which has resulted in your client receiving a larger repayment than have been made.
    What actions should you take?
    Am having exam tomorrow pls!!!

  3. avatar says

    Hello. I’m planning to sit my f6 (UK) exam on the new September exam sessions. Do I need to wait for the lectures and notes to get updated or can I just use the ones already there. Thank you.

  4. avatar says

    please sir,according to your lectures the allocated time is 55min but when watching, only 32min and 36sec. was recorded.
    please is that all the lectures or the remaining is coming.

    thanks.wonderful lectures.

    please reply me.

  5. avatar says

    It is the first time Im listening to OT lectures and honestly Im amazed by the clarity. I totally counting on these lectures and my revision kit for the June sitting. Thank you so much for such amazing content.

  6. Profile photo of Abdul says

    Hello Sir,

    Could you please let me know which Text book I should refer for F6? BPP or Kaplan?

    I am planning to take up F6 exam in June – 2015 and will be fully dependent on your online lecture, so please advice.


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