Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Query on savings income exempt from income tax
- This topic has 1 reply, 2 voices, and was last updated 9 years ago by Tax Tutor.
- AuthorPosts
- September 6, 2015 at 8:50 pm #270130
Q Said is a professional translator and has made the following investments during the tax year 2014/15.
i) GBP 400 in shares in the company he works for
ii) GBP1000 in a New Individual Savings Account
iii) GBP800 in National Savings & Investments Investment account
iv) GBP 500 purchasing a National Savings & Investment CertificateWhich of the above investments will generate income which is exempt from income tax for the year 2014/15?
A) All of the above
B) i, ii and iv only
C) ii iii and iv only
D) i onlyAnswer by Kaplan:
B.
Income generated from a New Individual Savings Account and a National Savings & Investments Certificate is exempt from Income Tax.
Options A, C & D are incorrect because income generated from shares (dividends) and from NS&I investment account is subject to income tax.
Question to tutor:
So why is (i) included in the answer? Shares in company he works for generates dividends and this is subject to income tax.September 6, 2015 at 10:06 pm #270135Clearly only options (ii) and (iv) are exempt. Presumably option B in the question should have simply said those 2 options and not included (i)
- AuthorPosts
- You must be logged in to reply to this topic.