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Chapter 2 Example 15

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chapter 2 Example 15

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by AvatarJillyB.
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  • February 12, 2024 at 2:06 am #700095
    Avatarilham9089
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    • Topics: 301
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    In this question, the individual is a high rate taxpayer yet we extend both the basic rate and high rate bands due to the gift aid donation. Isn’t this incorrect as extending both the BR and HR bands applies only when the taxable income is that of an additional rate taxpayer and in the case of a high rate taxpayer we would only extend the BR band?

    February 13, 2024 at 2:46 pm #700229
    AvatarJillyB
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    • Topics: 0
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    • ☆☆☆☆

    True but the rules says you extend both – so do it in the exam please

    February 17, 2024 at 6:30 am #700532
    Avatarilham9089
    Participant
    • Topics: 301
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    Do we also extend the basic rate band if the taxpayer is a basic rate taxpayer, because chapter 12 example 6 that is how it is done. However the notes say that the relief is automatic for a basic rate taxpayer so could you clarify if we should extend the BR band for a basic rate taxpayer on a gift aid payment

    February 19, 2024 at 9:59 am #700665
    AvatarJillyB
    Participant
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    If the tax payer is BR then the relief is automatic. If they are HR/AR then extend the rate bands to give them further relief.

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