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Lectures does not cover this topic even though my notes have this topic Sir. Can you shine some light on it so that it could be clear.
Hi
I’ve just checked the notes, particularly pages 113 and 114
There’s not a lot to understand on page 113 – I believe that it’s pretty much clear with the possible exception of ‘the prescribed part’ and the mathematics of the calculation of the prescribed part
So here goes!
Where assets are lower than £10,000 (say £6,000) the calculation of the pp is simply £6,000 * 50% = £3,000
Where assets are above £10,000 but less than £600,000 (say £430,000) the calculation is (£10,000 * 50%) + (£420,000 * 20%) = £5,000 + £84,000 = £89,000
Where assets exceed £600,000 (say £750,000) the calculation is (£10,000 * 50%) + (£590,000 * 20%) = £5,000 + £118,000 = £123,000
Has that cleared up any confusion that you may have had?
If not, post again
OK?
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