Chapter 10 AA Annual Allowance

Good morning Sir,

Hope your well!

Ive got to chapter 10, and couldnt get my head around this information below regarding AA.

For the first example i get how you got 180,000-150000/2 as 180000 is excess of 150000 and divide it by half (£1 for every £2 over 150000). So its reduced by £15000 as its half of £30,000 but how did you get tapped down to £25000?

And for second example how did you get the minus £40000 here and why isnt the minus 40k or anything like that in the example above (40,000 – ((210,000 – 150,000)/2) = £10,000).

Thanks

The normal annual allowance of £40,000 however, is tapered (reduced) by £1 for every £2 by which a person’s
“adjusted income” exceeds £150,000, down to a minimum tapered annual allowance of £10,000. Therefore, a
person with “adjusted income” of £180,000 will have their AA reduced by £15,000 (180,000 – 150,000 / 2) down
to a tapered AA of £25,000.

A person with £210,000 or more of adjusted income will only be entitled to an
annual allowance of £10,000 (40,000 – ((210,000 – 150,000)/2) = £10,000).