1. avatar says

    Sir, I am still confused with the jointly owned assets. If elton transfer the full amount to david, than david will be charged as 20000-9440*20% will come 2112 right. or if he transfer full it would be 50 50? or transfering full would mean it will be 50 50 so ten thousand to david and ten thousand to elton. means from david it will be 112 tax laibility but from elton it will be 2000 as their will not be any personal allowance available? what is the right way. i am little confused. please advise

    • avatar says

      IF Elton transfer 5% – 95% to David, 50/50 rule applies, therefore each bear 10000
      Elton 10000*40%=4000 David (10000-9440)*20%=112 TOTAL: 4112

      Case 2:
      IF Elton transfer 100% to David, 50/50 rules DON’T applies,therefore Elton bear 0, David bear 20000
      Elton 0*40%=0 David (20000-9440)*20%=2112 TOTAL: 2112

      Since Elton has already used all his basic rate pool (<=100000), David use 20000 which is within his basic rate range( 32010).

      Hope it helps.

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