• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Finance Act – Tax planning for Marriage couple Continue

Forums › ACCA Forums › ACCA TX Taxation Forums › Finance Act – Tax planning for Marriage couple Continue

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by mrjonbain.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • April 3, 2021 at 6:59 am #615795
    Yong
    Member
    • Topics: 16
    • Replies: 15
    • ☆

    Dear Tutor

    Come across this question in the article, example 6. Would like to know if based on calculation is the below tax liability correct.

    EXAMPLE 6
    Samuel and Samantha are a married couple. For the tax year 2020-21, Samuel will have a salary of £90,000. Samantha will have a salary of £30,000 and savings income of £1,500.

    Samuel is a higher rate taxpayer, so his savings income nil rate band is £500. Transferring sufficient savings to Samuel so that he receives £500 of the savings income will therefore save income tax of £100 (500 at 20%) for 2020-21. – I am not quite sure, how it can result in saving of £100

    Employment income $90,000.00

    Transfer of allowance $(1,250.00)
    Personal allowance (12,500.00)
    Taxable income $76,250.00

    Income Tax
    $37,500.00 20% $7,500.00
    $38,250.00 40% $15,300.00
    $500.00 0% $-

    Tax liability $22,800.00

    April 11, 2021 at 10:15 am #616723
    Yong
    Member
    • Topics: 16
    • Replies: 15
    • ☆

    Can any assist me on this. Thank you

    April 11, 2021 at 11:57 am #616728
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1580
    • ☆☆☆☆☆

    Is it because the £500 over the personal savings allowance of Samantha (which would be £1000 since she is a basic rate tax payer) would have resulted in her paying tax at rate of twenty percent on this income. In other words £500 (0.20 x500 = £100). Since this is covered by Samuel’s savings allowance this results in a tax saving for the couple of £100. Hope this helps.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • shazleen on ACCA AB Chapter 10 – Management – Questions
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • John Moffat on Linear Programming – Maximum contribution – ACCA Performance Management (PM)
  • d.kabulova on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • alin.sivi on Linear Programming – Maximum contribution – ACCA Performance Management (PM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy