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Opentuition f6 notes, chapter # 2 ,example # 6

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Opentuition f6 notes, chapter # 2 ,example # 6

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Tax Tutor.
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  • July 25, 2015 at 5:42 am #261816
    Miss A..
    Member
    • Topics: 32
    • Replies: 41
    • ☆☆

    is the answer of the example 6 at the back of notes right ?
    dividend tax credits are not supposed to create income tax repayment , so how come income tax repayable ?

    July 28, 2015 at 11:29 am #262602
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The dividend tax credit does not create a repayment it merely reduces the tax liability of £3,200 by £200 which still leaves tax payable of £3,000 which the other tax credits do indeed then serve to create a repayment, hence why we always deduct the dividend tax credit first!

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