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Exempt Income

This topic has 2 replies, 2 voices, and was last updated 6 years ago by janeseow.

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November 4, 2018 at 8:42 am #483725
janeseow
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- Topics: 6
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Which TWO of the following types of income are exempt from income tax?
– interest on an NS&I Investment account
– Premium bond prizes
-Interest on UK government stocks (gilts)
-Dividends on shares held in an Individual Savings Account
BPP answer: interest on NSI and gilts.
Hi sir, you have stated in your lecture that dividends within ISA and premium bond winnings are exempt income too. May I know if I have misunderstood anything…?
Thanks in advance!
November 16, 2018 at 4:55 am #484960
Tax Tutor
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The BPP answer is the income that is TAXABLE not the income that is exempt! Are you sure the question asked for exempt rather than not exempt?? Let me know
November 17, 2018 at 4:27 am #485050
janeseow
Member
- Topics: 6
- Replies: 5
The question asked for exempt rather than taxable (the latest version of BPP revision kit). They probably made a mistake in the question/ answer. Thank you for your clarification!
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