Tax and allowance information (2019/20) Personal Allowance 12.500 Capital Gains - Annual Exempt Amount 12000 Interest - Tax free amounts: E1,000 (Basic E500 (Higher ED (Additional). Also Up to 5000 of interest may be taxed at 0% before applying the tax free amounts Dividends - Tax free amount: $2.000 (Basic, Higher and Additional) Capital Gain 10% Capital Gain Main Rates for Personal Taxation Taxable Earned Interest Dividends Income (2) Income Basic 0-37,500 20% 20% 75% Higher 37.501- 40% 40% 32.5% 150 000 Additional Over 150,000 45% 45% 38.1% 20% 28% 20% 28% Reduced by C1 for each C2 of adjusted net income over 100.000 to minimum of ** Applies to investments, excluding residential property *** Applies to residential property but main residence is exempt UK Corporation Tax rate Q1 Kelly is an actuary who works for a UK pensions consultancy. For the most recent tax year she has collected together the following information about her income outgo and investment transactions so that we can assess the total additional tax she will need to pay in excess of what her employer would have already deducted from her earnings through the Pay As You Earn (PAYE) system. 135.000 3 per cent of alry 5 per cent of salary C750 2.500 2,000 1000 C1000 Her contribution to company pension scheme Her employer's contribution to company pension scheme Charitable donation made through her employer's Payroll Giving scheme Interest from bank account wings Interest from investments in UK Government stock Interest from investments in UK Corporate bonds Premium Bond price Her comparty pay for her Private Medical Insurance Dividends from investments in UK ordinary shares Additional dividends from investments in UK ordinary shares held in an ISA Capital gains from selling ordinary shares Additional capital gains from selling ordinary shares held in a unit ISA Capital gains from selling UK Fred Interest Government stock Accumulated capital loss brought forward from prior tax years 3,500 [1000 E17.500 E1500 4,500 a) Calculate the total tax that Kelly will have to pay in respect of this year [7 marks] b) Calculate the additional tax that Kelly will need to pay after allowing for the amount deducted through PAYE. (0) State the date she will need to pay this by to avoid a fine [2 marks] c) Kelly's father, who's approaching retirement has asked Kelly to determine what his total tax liability for the year will be. His only sources of income are from a part time job (basic salary of 14,500) and his various bank accounts which represent his life savings interest of 8,000) Calculate the amount that Kelly needs to communicate to her father. [3 marks] [Total 12 marks] Tax and allowance information (2019/20) Personal Allowance 12.500 Capital Gains - Annual Exempt Amount 12000 Interest - Tax free amounts: E1,000 (Basic E500 (Higher ED (Additional). Also Up to 5000 of interest may be taxed at 0% before applying the tax free amounts Dividends - Tax free amount: $2.000 (Basic, Higher and Additional) Capital Gain 10% Capital Gain Main Rates for Personal Taxation Taxable Earned Interest Dividends Income (2) Income Basic 0-37,500 20% 20% 75% Higher 37.501- 40% 40% 32.5% 150 000 Additional Over 150,000 45% 45% 38.1% 20% 28% 20% 28% Reduced by C1 for each C2 of adjusted net income over 100.000 to minimum of ** Applies to investments, excluding residential property *** Applies to residential property but main residence is exempt UK Corporation Tax rate Q1 Kelly is an actuary who works for a UK pensions consultancy. For the most recent tax year she has collected together the following information about her income outgo and investment transactions so that we can assess the total additional tax she will need to pay in excess of what her employer would have already deducted from her earnings through the Pay As You Earn (PAYE) system. 135.000 3 per cent of alry 5 per cent of salary C750 2.500 2,000 1000 C1000 Her contribution to company pension scheme Her employer's contribution to company pension scheme Charitable donation made through her employer's Payroll Giving scheme Interest from bank account wings Interest from investments in UK Government stock Interest from investments in UK Corporate bonds Premium Bond price Her comparty pay for her Private Medical Insurance Dividends from investments in UK ordinary shares Additional dividends from investments in UK ordinary shares held in an ISA Capital gains from selling ordinary shares Additional capital gains from selling ordinary shares held in a unit ISA Capital gains from selling UK Fred Interest Government stock Accumulated capital loss brought forward from prior tax years 3,500 [1000 E17.500 E1500 4,500 a) Calculate the total tax that Kelly will have to pay in respect of this year [7 marks] b) Calculate the additional tax that Kelly will need to pay after allowing for the amount deducted through PAYE. (0) State the date she will need to pay this by to avoid a fine [2 marks] c) Kelly's father, who's approaching retirement has asked Kelly to determine what his total tax liability for the year will be. His only sources of income are from a part time job (basic salary of 14,500) and his various bank accounts which represent his life savings interest of 8,000) Calculate the amount that Kelly needs to communicate to her father. [3 marks] [Total 12 marks]