Personal Tax -Practice assesment 2 -Task 2 c
michelleapo15
Registered Posts: 1 New contributor 🐸
in Personal Tax
I do understand how how answer was calculated for the following:
"Mr C received two interest free loans from S Ltd: £7400 in January 2023 and £ 9200 in November 2023." What is the taxable amount?
The answer is £270 but cannot work out how did they got to that answer as my calculations were as follows:
7400 x 3/12 x 2.25% = 41.63 ( if 7400 relates to year 22/23 then we would ignore it)
9200 x 5/12 x 2.25% = 86.25
So my calculation result is nowhere near 270.Please help understand.
"Mr C received two interest free loans from S Ltd: £7400 in January 2023 and £ 9200 in November 2023." What is the taxable amount?
The answer is £270 but cannot work out how did they got to that answer as my calculations were as follows:
7400 x 3/12 x 2.25% = 41.63 ( if 7400 relates to year 22/23 then we would ignore it)
9200 x 5/12 x 2.25% = 86.25
So my calculation result is nowhere near 270.Please help understand.
0
Comments
-
Hi,
The benefit in kind for interest free loans in not based on number of months, it is based on an average.
Tax year 1
(7400/2) x 2.25% = £83.25
Tax year 2
((7400+9200)/2) x 2.25% =£186.75
83.25+186.75 = £270
Hope this helps.0
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