Interest Taxation

Yes The 0% starting rate band will be applicable to the first £3,000 of savings income which falls into the first £5,000 of taxable income. As the taxpayer is a higher rate taxpayer a £500 savings income nil rate band is then available with the remainder of the savings income falling in the basic rate band and being taxed at 20%. Dividend income will have the first £5,000 at nil rate with the balance in the basic rate band taxed at 7.5% and the amount in the higher rate band taxed at 32.5%

@Taxtutor said: Yes The 0% starting rate band will be applicable to the first £3,000 of savings income which falls into the first £5,000 of taxable income. As the taxpayer is a higher rate taxpayer a £500 savings income nil rate band is then available with the remainder of the savings income falling in the basic rate band and being taxed at 20%. Dividend income will have the first £5,000 at nil rate with the balance in the basic rate band taxed at 7.5% and the amount in the higher rate band taxed at 32.5%

Hi, I cant seem to understand your response. I watched the Income Tax part earlier in the year before march and didnt see anything about a 500pounds nil rate band. Kindly assist. Was there an update to the income tax lectures and rate? Do I have to watch all the videos again? Oh my! thats a long one. Regards

The June exam is based on FA 2016 and you will definitely have to work through all of chapters 2 and 3 in the income tax section. Chapter 2 is indeed "a long one"! Enjoy!

cry............ So sad... Is it just 2 and 3 alone? Do I have to watch 4,5 and 6 again?

Not chapters 4 & 6 and in chapter 5 it is simply that the AIA is now £200,000 instead of £500,000. Do make sure that you are now using and have worked through the June 2017 notes