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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › first

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.
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  • February 14, 2017 at 3:32 pm #372392
    jennifer
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    first 5000 0% rated eg 5

    February 15, 2017 at 12:17 am #372434
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    I presume you mean chapter 2 example 5 and you are referring to the use of the 0% starting rate for savings income. This is ONLY available on taxable savings income that falls within the first £5,000 of TAXABLE INCOME. Thus if taxable NON savings income exceeds £5,000 there is no 0% starting rate available to apply to any taxable savings income.
    In example 5 the taxable non savings income is £1,000 meaning that only £4,000 of the taxable savings income falls within the first £5,000 of taxable income and therefore benefits from the 0% starting rate

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