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Income tax computation – Savings Income continued (part 3) - ACCA Taxation (TX-UK) FA2018

VIVA Subject Guide
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13 Comments

  1. mo55
    Good day sir,
    Looking at example 12, Kathy is a higher rate tax payer and is entitled to a £500 nil rate band but it wasn't considered in the answer. Please why is that?
  2. Mohamed
    nil rate band only applied to Saving Income & dividend income, Example 12 hasn't got any saving & dividend income .
  3. parag
    i was following the lecture and thinking what is the benefit to the basic tax payer.
    looking at he example question there isnt one to workout a basic tax payer where he has paid some gifts.

    So please explain.
    If Mike had Non Saving income of 18000 and gift aid donation of 800 how would his tax calculation look like.

    Does he get any relief anywhere ?

    Thanks,
  4. dcinyama
    god day sir, please where can i find the solutions to the examples in the lecture note?
  5. parag
    lecture note has answer sections in the last page ranges.
  6. Hammad
    thanxs
  7. Hammad
    Sir,

    If the person is basic tax payer, we don't have to increase the slab the with the amount of gross gift aid donation?
  8. Syam Krishnan Kamath
    if its a basic tax payer, ie his income is below 34500, no matter whether its increased or not, he still pays only 20%, so i think its irrelevant.
  9. parag
    So please explain.
    If Mike had Non Saving income of 18000 and gift aid donation of 800 how would his tax calculation look like.

    Does he get any relief anywhere ?
  10. priscilla5236517
    Goodday sir,in example 15,my adjustable net income exceeds 100,000..by 5000,how come it wasnt considered in the PA calculations
  11. craileary1991
    Confused with this too!
  12. salina
    yes. I would like to know as well.
  13. way2acca
    As Adjusted Net Income does not exceed 100,000 (see below) -> the PA is not reduced.

    Net Income = 105,000
    Less Gross gift aid payment (4,800 × 100?80) (6,000)
    Adjusted Net income = 99,000

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