Income tax computation – Savings Income continued (part 2) - ACCA Taxation (TX-UK) FA2018
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10 Comments
M
Mary·
on the accrued income assessed for the buyer- why is it 6 months and not 7 months?
Y
yue·
The buyer bought the stock on 01.07 and the interest is paid on 31.12. Its 6 months in total.
J
jwang8·
I really enjoy this lesson, come from a non-accounting background, now after watched all
the previous videos, now I can do some easy exam questions on my own, thank you so much.
M
marina·
Hello , in the example 5 -> I think there is a little mistake in the calculation of :
SAVINGS TAX Liability:
4.350 x 0% = Nil (correct)
1.000 x 0% = Nil (correct)
13.300 x 20% = 2.660 (!! in the answers there is 12.650 x 20%, but why 12.650 when the total taxable income is 18.650...)
M
marina·
sorry, never mind, i was confused with the Total taxable income and total SAVING income.
I got it :)
C
christy2418·
Sorry posted in the wrong area. However I have solved the issue.
C
christy2418·
Hi
Example 9 the non savings value is £40,000. why is the tax rate 40% on £20,000 and 45% on £20,000? I was expecting it to be 20% on the first £34,500 then 40% on £5,500
A
akay4·
if you taxed the Nonsavings of the first 34,500 @20% what is left would be £95,500, which has crossed over to higher rate. therefore, £95,500 @40%. So the difference between £130,000 to £150,000= £20,000 from the savings is within the higher rate. Therefore it'd be taxed at 40%, while the reaming £20,000 left from the savings has crossed over to additional rate, then it'd be taxed at 40%.
A
Asif·
Hello Sir!
I have a question with example 8
Mike is a Higher Rate Taxpayer, Then why Nil Rate Band £500 is not applied?
the previous videos, now I can do some easy exam questions on my own, thank you so much.
SAVINGS TAX Liability:
4.350 x 0% = Nil (correct)
1.000 x 0% = Nil (correct)
13.300 x 20% = 2.660 (!! in the answers there is 12.650 x 20%, but why 12.650 when the total taxable income is 18.650...)
I got it :)
Example 9 the non savings value is £40,000. why is the tax rate 40% on £20,000 and 45% on £20,000? I was expecting it to be 20% on the first £34,500 then 40% on £5,500
I have a question with example 8
Mike is a Higher Rate Taxpayer, Then why Nil Rate Band £500 is not applied?