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In the tax year 2019/20 Henry Murray has: Been working as a finance manager earning RM75,000 per annum. He is provided with a petrol car
In the tax year 2019/20 Henry Murray has:
- Been working as a finance manager earning RM75,000 per annum. He is provided with a petrol car by his employer, list price RM24,000, with CO2 emissions of 123g/km. His employer pays for all the fuel for the car. He is also provided with a parking space at work in the centre of London that is worth RM875 a year. There is a staff canteen available to all staff where Henry has a subsidised lunch each day; this costs him RM1.50 and he estimates an equivalent meal elsewhere would be approximately RM5.50. Henry had to pay professional subscriptions to the ICAEW of RM395 this year.
- During the year Henry received interest on his bank savings account of RM1,600 and dividends of RM1,825. He has an ISA, on which he received RM750 of interest during the year.
- In August 2019 Henry sold a painting for RM23,400. He had to pay RM400 for special packaging and agents fees of RM1,000 from the proceeds. He bought the painting years ago at an auction for RM250. In 1999 he had the the frame repaired at a cost of RM75.
- Henry also runs his own consultancy business, teaching personal finance workshops. This year he made profits of RM7,800 after deducting personal withdrawals of RM3,000. He kept accurate mileage logs and charged RM245 in business petrol costs to arrive at this profit, and also deducted the cost of gifts to his clients, amounting to RM970.
Question:
i) Calculate Henrys income tax liability for the year 2019/20.
ii) Calculate Henrys capital gains tax liability for the year 2019/20. What rate of tax will he pay on this gain?
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