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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Transferable PA
sir,I have an issue about transferable PA.
say A & B are married couple.
A has a net income of 10k
B has a net income of 22k.
calculate the income tax liability
solution:
A’s net income: 10000
Pa. :(10600)=Nil
so,A has unused PA of 600
and B is basic taxpayer.
my concern is the transferable amount is 1060 but A has only 600 unused PA.
should we still transfer 1060X20% ie. 222 tax reducer to the tax liability calculation?
and importantly in some questions say if A has net income 0f 8k,then it showed like:
A’s net income: 8000
pa.(10600-1060)=(9540)= nil.
A had 2600 unused PA that’s why we show 1060 as a deduction in this calculation?
plz explain sir..
@saif02bd said:
sir,I have an issue about transferable PA.
say A & B are married couple.
A has a net income of 10k
B has a net income of 22k.
calculate the income tax liability
solution:
A’s net income: 10000
Pa. :(10600)=Nil
so,A has unused PA of 600
and B is basic taxpayer.
my concern is the transferable amount is 1060 but A has only 600 unused PA.
should we still transfer 1060X20% ie. 212 tax reducer to the tax liability calculation?
and importantly in some questions say if A has net income 0f 8k,then it showed like:
A’s net income: 8000
pa.(10600-1060)=(9540)= nil.
A had 2600 unused PA that’s why we show 1060 as a deduction in this calculation?
plz explain sir..
If the election is made then £1,060 of the PA of A will be transferred reducing the PA down to £9,540 and therefore if A has income of £10,000 then this will create a taxable income for A of £460.
Remember that we do not transfer the PA of £1,060 to B but we instead will then reduce the tax liability of B by £212