the $40,000 of saving income being divided into 20,000 and 20,000.
Is it because the savings and non-savings total = 170,000 which exceeds the higher rate band by 20,000 so the first 20,000 is subjected to 40% and the remaining 20,000 is subjected to 45%?
Yes that is exactly the reason for the taxing of the savings income!
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