Hello,
can you please advise on Example 12 how you arrive at an revised personal allowance of 7000? I am using 0.5 x (102000-100000) but understand that you are using 0.5 x (106000-100000)
Where is the 106 000 coming from?
Thank you for your help as this really has me baffled.
Ask the Tutor ACCA TX-UK
Lecture: Income tax computation – Personal allowances Examples: 10-13
The reduction in the PA applies where adjusted net income exceeds 100,000. In this example the adjusted net income is the same figure as the total income on the computation which is clearly shown as 106,000. The 102,000 is just one part of the total income as you have incorrectly ignored the interest income!
Are you working through the notes with the lectures?
I am using the lecture notes, but have obviously completely blanked that I need to use ALL income not just NS income when calculating!
Thank you so much for waking me up, feel silly for having asked this now..
No problem ....... I have a feeling you might just remember this now!
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