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Example #10, Chapter 2 – Personal Allowance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Example #10, Chapter 2 – Personal Allowance

  • This topic has 3 replies, 3 voices, and was last updated 5 years ago by Tax Tutor.
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  • Author
    Posts
  • May 10, 2020 at 5:08 am #570450
    Almannai
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    Dear Sir,

    First of all, thank for support for ACCA students all around the world, i just want to highlight that in your answer in the notes for example #10, in calculation of personal allowance, the Adjusted Net Income should be 102,000 not 106,000.

    Is it correct ??

    Thanks,

    May 10, 2020 at 2:23 pm #570475
    Julian.M.R.C
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    Hi everyone,

    I hope you are well.

    I understood that the Net Income is £106,000 (Non-Savings Income £102,000+ Savings Income £4,000)

    May 10, 2020 at 2:28 pm #570477
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The answer as in the notes is correct – what makes you think that the ANI should be only 102,000 when that is only the trading income figure?

    May 10, 2020 at 2:31 pm #570481
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Quite right Julian the ANI contains both the trading income and the savings income.

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