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Hello Sir,
I see that nil rate band of both savings and dividend income counts towards basic and higher rate threshold but not sure if the treatment is same for 0% starting rate as well?
For example, if you could kindly illustrate the working of tax liability in the following two cases separately:
1. If a taxpayer has say £60,000 of savings income and £40,000 of dividend income (both net income figures)?
2. If a tax payer has say £7,000 of savings income and £60,000 of dividend income (both net income figures)?
Thank you Sir in advance.
Regards,
NitinThere are several examples in the OT notes and lectures that illustrate the use of the tax rates – please ensure that you thoroughly review
In your examples you have made no mention of non savings incomeI have intentionally ignored Non-savings income in the above two cases. You can consider the above figures as Taxable income instead of Net Income to avoid the hassle of PA calculation.
Request your guidance Sir.
I have solved all the problems and practice questions but could not get a problem similar to the above hence this request.
I have intentionally ignored Non-Savings income in these 2 examples.
Your guidance will be really appreciated.
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