Question
a) Federico works only for Time PLC and has no further income or capital gains. He was promoted last year and currently earns 76,000 p.a..
a) Federico works only for Time PLC and has no further income or capital gains. He was promoted last year and currently earns 76,000 p.a.. He has benefits in kind totaling 3000 for the period 2019/2020. Calculate the taxable income and the amount of tax due for the year 2019/2020. (3 marks)
b) Ricky works as a plumber and currently earns 56,000 per annum. He bought a property as an investment in 2010 for 125,000. Due to Brexit, he fears the price of his property will go down and decides to sell it for 215,000. Note that Ricky has no other benefits in the current tax year 2019/2020 Calculate the taxable income and the total tax due by Ricky for the period 2019/2020. (6 marks)
tax rate allowance
0% up to 12570
20% 12571-50270
40% 50271-150000
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