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Case Study: 5 (10 Marks) Mr. Oliver is the owner of the famous country side Crial Foods Restaurant in Crial, Scotland. He earns his revenue
Case Study: 5 (10 Marks)
Mr. Oliver is the owner of the famous country side Crial Foods Restaurant in Crial, Scotland. He earns his revenue from both restaurant business and catering services provided for special event in the town. Anyhow, he maintains separate books of accounts for both of these services. In the current tax year 2018/19, revenue from his restaurant business seems to be doing well at 96,875. However, expenses from his restaurant business may have concluded at 63,755, excluding a loss occurred due to damage of electrical equipment worth 20,000 due to voltage fluctuations in the current tax year. His catering business earned him a revenue of 60,000 with a marginal return of 10% profits after deducting all his expenses. The repayment of the Citibank Loan calculated him a payment of qualified interest on this loan of 11,875 in the current tax year.
Mr. Oliver also receive an annual interest of 4,500 towards his investment in NS&I saving certificates and realized interest from government gilt edged securities worth 2,500 in the current tax year. He developed his knowledge in stock exchange investment and received 26,000 dividend towards his investments in shares.
Considering the above information compute Mr. Olivers taxable income, tax liability and tax payable for the year 2018/19 as per UK Tax Laws.
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