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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chap 2 answer 9 Income tax computation
There appears to be an error in calculating Savings and Dividend income. Please have a look at the answer
Thank you it is just a typing update error on the total tax figure as far as I am aware
Looking at savings income am I correct in yr calculation £20000 @20% comes from non savings £130k +Savings £40k= £170 k “taxable income”
From tax table £32001-£150K @40% on £20000 ?
Above £150 k @45% on £20000?
Thank You
It is as the answer shows that non savings income is taxed first (130,000), and savings income is taxed next – so with 20,000 of the higher rate band remaining (150 – 130) 20,000 is taxed at 40% and the remaining 20,000 is taxed at 45%