I don't get it, why must Kerry's Dividends be calculated by
3,000/94,400 × 32.5% = 975
I got it at [email protected]%
Kindly advise thank you!
Ask the Tutor ACCA TX-UK
Reliefs and Payments to charity under Gift Aid System Example 15
Look again at the answer - the calculation is 3,000 x 32.5% = 975
The 94,400 is simply the total taxable income! Just add down that column.
The dividend income is NOT to be taxed at 37.5% as it falls within the higher rate band not the additional rate band
Thank you Sir :)
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