Another Personal Tax question help !!!
alexp19740
Registered Posts: 16 Dedicated contributor 🦉
Brian receives income from ISA, Building Society Account, Dividends. Her other income before Personal Allowances have been deducted is £35000 for 2013-14. His other income is as follows:-
Income from ISA = 1400
Interest from Building Society = 5500
Income from Dividends = 1800
Calculate for each Income type:-
Income from ISA = 1400
Interest from Building Society = 5500
Income from Dividends = 1800
Calculate for each Income type:-
- Tax deducted at source
- Any additional tax payable
0
Comments
-
Alex,
Take the personal allowance off the other income.
Deduct the remainder from the basic rate band to calculate how much of that band remains.
Gross up the interest (x100/80) and the dividends (100/90) - you may have done this already when calculating the tax deducted at source.
Tax the gross interest at the same rates as normal income (20% in basic rate band, 40% above).
Tax the gross dividends at 10% for any basic rate band left, or 32.5% above it.
To work out the ADDITIONAL tax on interest and dividends, deduct the tax deducted at source (which I assume from your original post you have no problem calculating) from the tax charge on each as calculated above.0 -
Thanks Cee-Jay that has been a great help.0
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