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: a) Calculate Fred's 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 b) How could Fred have reduced his tax bill for this year? 1 mark c) If Fred also had interest that was not in an ISA, how would this be taxed? What rate of tax would he pay on it? 2 marks Total 11 marks 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: a) Calculate Fred's 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 b) How could Fred have reduced his tax bill for this year? 1 mark c) If Fred also had interest that was not in an ISA, how would this be taxed? What rate of tax would he pay on it? 2 marks Total 11 marks