Hi Sir,
your last example on the chapter 14 Entreprenuer relief you taxed all of your non e/r at 20%, why is this? There was still basic rate of 19500 still left so i would of thought we tax non e/r first so we can use remaining basic rate to tax some of non e/r at 10% and then we tax the e/r last becuase its going to be 10% regardless. So if we had basic rate of 19500 remaining why isnt some of the non e/r taxed at 10%?
Thanks
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Entrepreneur Relief
I know in the video you say the remaining basic rate was utilised on e/r but why is that, i would of thought from my understanding so far that the reason why you split er and non er is to make make the higher taxed assets more tax efficient? I hope you understand where im coming from, im just trying to ace this topic
Thanks
You recognise that I give the answer in the video and the first point in Section 1.4 of the chapter clearly states that this is the rule - sadly for you it is not a question of what you think should happen - it is simply a matter of learning the rule given in the lecture and in the study notes and applying that rule accordingly. Tax is not philosophical and it is not a question of why - it is a series of rules that as just stated must be learned and followed.
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