BPP revision kit – Mock exam 1 Jessica

Good Afternoon

The question is on page 233 and answer on page 253

My query relates to bii) – Loss reliefs

There seem to be 1 or 2 obvious mistakes on the paragraph, for example £147,000 is sometimes referred to as £145,000, so best to get some clarification.

1) The redundancy package was worked out to be £20,680 but in bii) paragraph 3, the figure includes again the £170 which is the 20% of the £850. I don’t understand why when we already concluded on £20,680? Please kindly explain because my final taxable income is £173,680.They seem to use two amounts of £173,850 and £171,850 so not sure which one is correct, if any.

2) In paragraph 4, why does the £37,500 basic rate at 20% not apply because my answer would then be: 37,500@20% 7500
(150-37.5-48) 64,500@.40 25,800
(173.68-150) 23,680@45% 10,656

Please explain where I’m going wrong because I have gone back and forth in my notes and previous questions but cannot figure this one out

Thank you