Urgent - Assessment 2 Task 1.3
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eandre0
Registered Posts: 1
in Personal Tax
Can someone help me with this one question on the 2nd Practice Assessment task 1.3? I have my exam tomorrow and it's this one question I cannot seem to answer.
Foday had receieved a loan of £5,000 on Jan 1st 2020. He recieved a second loan of £8,000 on 1st December 2020. The Loans are interest free and he has not made any repayments. What is the taxable amount?
Thanks in advance
Foday had receieved a loan of £5,000 on Jan 1st 2020. He recieved a second loan of £8,000 on 1st December 2020. The Loans are interest free and he has not made any repayments. What is the taxable amount?
Thanks in advance
0
Comments
-
Average method: (Loan@start of year + Loan@end of year)/2
Loan@start of year = 5,000
Loan@end of year = 13,000 (5,000+8,000)
Thefore: (5,000+13,000)/2 = 9,000
9,000 x 2.25% (HMRC rate) = 202.50
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