marginal relief

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
can anyone explain in what order they work out the marginal relief formula. eg which bit of brackets do you do first? which figure do by the fraction??<BR><BR>mental block and different answers at moment!<BR>please help<BR>thanks<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    marginal relief

    11/400 ie 0.0275 x (1.5m - P) x P/PCTCT<BR><BR>what i do is work out <BR><BR>1. Divide either 11/400 or 19/40 and get an answer<BR>2. Take away P from 1.5m (or 300K)<BR>3. Divide P by PCTCT then multiply by the other two known answers.<BR><BR>Then you just need to remember that this is the marginal relief not the tax payable.<BR><BR>Hope this helps<BR>Claudia<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    marginal relief

    In the above reply:<BR>19/40 s/be 19/400<BR>200K s/be 50K<BR>P/PCTCT s/be PCTCT/(PCTCT+UK divs received grossed up)

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