Question
Question 3 Fred recently invested a legacy on the London Stock Exchange, earning dividends of 2,440. He also holds a cash ISA which earned 645
Question 3
Fred recently invested a legacy on the London Stock Exchange, earning dividends of 2,440. He also holds a cash ISA which earned 645 interest.
Required:
- Calculate Freds income tax liability for the year 2021/22. You must include the profits and employment income calculated in Questions 1 and 2 in your calculation.
You will lose marks if you do not use the recommended layout shown in class.
8 marks
- How could Fred have reduced his tax bill for this year? 1 mark
- If Fred also had savings that were not in an ISA, how would interest on this be taxed? What rate of tax would he pay on it? 2 marks
Total 11 marks
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
