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  1. i have seen the most asked query in the comments that why 1000 is taxed at 0%..so the answer is that, there would be no concept of nil rate band apply here since the 5000 rental income is classified under non-savingincome so the question arise why the teacher taxed 1000 at 0% .the answer is teacher did not apply nil rate band here.
    Now think like that
    net income of wife =15000 in which 5000 is rental income according to 50-50 rule
    less personal allowance =(11000)
    taxable income=4000
    so the 1000 taxed at 0% means that it is deducted from personal allowance.hope u people get my point.

    • Hi Anna,

      Think about like this:

      After P.A. of 11k, there is 4k tax liability payable, this is going to be at basic rate @ 20%.

      Since we know that, the 5k is included and as part of the total income. We could think it as, out of the 5k, 4k is to be taxed, which implies that the 1k is going to be taxed at 0%.

      Best wish
      Harry

  4. Hi, perhaps I am missing the obvious here however I couldn’t get my head around as to why 拢1,000 is charged @ 0% out of 拢5,000 net rental earned by Husband since we’ve used all 拢11,000 of his Personal Allowance. I reckon all 拢5,000 should be charged @ 20%. I’d be grateful for some explanation/clarification here. Thanks in advance.

    • I believe you’re talking about the 拢500 savings nil rate band available to higher rate tax payers?
      Rental income is classed under non-savings income and therefore the savings NRB is not applicable to the 拢5000 income she receives. Hence why the full 拢5000 is taxed at 40%

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