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March 27, 2017 at 4:53 pm
Was attempting example 8 of chapter 2. For the tax liability of non savings income shouldn’t the first £500 be taxed at 0%? In the answers it doesn’t show that this has been done.
December 1, 2016 at 2:34 am
Just to let you know, in case if one spouse elects to transfer his/her personal allowance, the allowance transferred will be 1,060. And the spouse who chose to transfer the personal allowance will be left with a personal allowance of 9,540 for deduction. In case if the Adjusted Net income exceeds 9,540 it will be taxed at the basic tax rate.
This was bothering me from the workings of example 12. I thought someone else might have the same question, therefore, I posted a comment for information.
November 18, 2016 at 5:21 pm
What is the point of 20% of 1060. Why can’t they just say that you can take 212 from your spouse’s PA?
November 18, 2016 at 5:35 pm
Oh I got it. That 212 tax credit has the same effect as increasing the PA as 10600+1060=11660 and if they just do that, it will be less confusing and straight forward.
October 6, 2016 at 7:12 am
In Example 9, How is savings split up into 20,000 each. Can you explain Please?
October 11, 2016 at 12:52 pm
For the higher rate band, 40% is charged for income less than or equal to 150,000. So, if you add the Non-savings income of 130,000 and 20,000 for savings it gives a total of 150,000.
Therefore, the remaining balance of 20,000 will be charged at the additional rate band of 45%.
Hope that helps
August 4, 2016 at 9:47 pm
Surely only £600 will be transferable, otherwise the spouse would be taxed?
July 25, 2016 at 6:42 pm
Under transferable amount of PA, What if the income of the spouse with the unused PA is £10,000. Do we still apply the whole of £1,060, considering the unused PA (£600) is less than £1,060?
July 26, 2016 at 4:02 am
Yes Ronke, the whole £1,060 will still be transferable to the spouse.
If he/she isn’t transferring, the whole £10,600 PA will still be available (even tho income is £10,000) thereby leaving his taxable income at nil.
I also believe it is good for tax planning purposes if he makes a transfer to the spouse who earns way more than him since his income is low enough to be covered by the PA anyway.
July 26, 2016 at 7:14 pm
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