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Question 6 (answer both parts (a) and (b)): In the tax year 2020/21, Noah had the following income: Employment income 98,000 Property income 10,000 Lottery
Question 6 (answer both parts (a) and (b)): In the tax year 2020/21, Noah had the following income: Employment income 98,000 Property income 10,000 Lottery winnings 250 Bank interest 3,000 UK Dividend income 3,300 Required: (a) Prepare Noah's income tax computation, showing his income tax liability for the tax year 2020/21 15 marks (b) Explain what is meant by fiscal drag and provide an example of fiscal drag from the UK tax system. 5 marks (Total marks for question 6: 20 marks)
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