- This topic has 4 replies, 3 voices, and was last updated 6 years ago by
.
- Posts
Hi Tutor,
Refer OT June 2017-March 2018 Lecture Notes, Chapter 2,
Example 9
On computing income tax on Savings income whose taxable income is £40,000. I do not understand the logic of taking (£150,000-130,000) which falls in Non-saving income and later (£40,000-20,000). Instead of taking £40,000×40% ONLY?The higher rate band limit is 150,000 over which additional rate is payable at 45% – the non savings income is 130,000 leaving only 20,000 of the higher rate band available for the savings income to be taxed at 40% and putting the remaining 20,000 into the additional rate band which is therefore taxed at 45% as shown
Hi Tutor,
For Accrued income scheme, exam tip says consider saving income NIL rate band.
Is is that the interest from securities can only be relieved with savings income NRB or would it be covered by the savings £5, 000 Starting rate band also?
If interest on securities is £7,000. and its a basic rate tax payer with only interest income from the security.
How much relief would this tax payer get. Would he get £5,000 starting rate band, NRB £1,000. or both?
Thanks
- You must be logged in to reply to this topic.