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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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