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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chapter 2 Example 15
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?
True but the rules says you extend both – so do it in the exam please
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
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.
