1. Peter is a 40-year-old advertising executive. He earned a salary 98,000 employment income - during the year ended 5 April 2021 (26,700 in PAYE was deducted from this). His other income for the year consisted of: dividends received 6,000, net interest received from an unquoted company 4,000. He made net payments of 3,200 to a registered charity under the gift aid provisions.

Calculate the income tax payable by Peter for the year ended 5 April 2021. (10 Marks)

2. Zoe received gross interest from her bank of 4,000 and employment income of 17,750 from her job during the year ended 5 April 2021. PAYE income tax of 800 was deducted from her employment income. She received from her husband the transferrable married allowance.

Calculate any income tax payable or repayable by or to Zoe for the year ended 5 April 2021. (5 Marks)

3. Explain how the government give tax relief for pension payments and charitable gift aid payments. Looking at the governments aims in a tax system discuss why they offer such reliefs?