Hello sir,
My question is on personal allowance transfer between spouse.
If the scenario is like this:
Husband : nonsaving income - 23000 (joint asset income included)
Wife : nonsaving income - 2500 (from joint asset)
Husband:Non savings income 23000-11000(PA) =12000
Wife: Non savings income 2500 - 2500(PA)= 0
tax: (husband)
N.S. 12000 @ 20%= 2400
{(11000-*2500)@ 10%}x 20% = (850)
Income tax liability= 1550
*The treatment I used for the tax reducer personal allowance ,is it right ?
Ask the Tutor ACCA TX-UK
transfer of personal allowance
No, sorry you are not right - look at OT course notes page 11, Chapter 2, Section 3.1 with accompanying example 11
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