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Hello Sir,
can you please solve this for me?
on 1 July 2018 vigorous plc provided Ben with an interest loan free of £120000 so that he could purchase a main residence. he repaid £20000 of the loan on 1 December 2018. calculate the benefit figure for the tax year 18/19.
Show me your calculations and tell me what part of the answer you do not understand. I trust you have watched the relevant lecture and worked through the OT notes on this issue.
Avg. Method :- (120000+100000/2)*2.5%*9/12 = 2063/-
Strict Method :- (120000*5/9)*2.5% + (100000*4/9)*2.5% = 2778/-
Thus ben may opt for lower amt. of Avg. Method
marenah – have you done your calculation?
dollpals – your calculation on the strict method is incorrect – look at the apportionments that you have doneok sir
total Duration of loan 1/7/18 to 5/4/18 = 9 months
120000 from 1 July till 30/11/18 = 5 months
repayment of 20000/- on 1st dec
thus outstanding of 100000 for 1/12/18 to 31/3/18 = 4 months
this was my though pl. correct
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