PTC- married couple allowance
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Peter a married man aged 72, pays maintenance of £3000 a year to a former spouse. His current wife has no income. Show his tax position for 2005/06 if his income consists of trading profits of £5910 and rental income of £2000.
Suggested solution
trade profits 5910
property income 2000
STI 7910
Less Personal allowance 7090
taxable income 820
income tax 82
maintenance payment MAX 2280x10% 82
married couple allowance 5565x10% nil
tax due nil
Problem is how to get 5565. Should it be 5905, the basic rate.
Someone please help. This is deeper than normal PTC question in AAT.
Suggested solution
trade profits 5910
property income 2000
STI 7910
Less Personal allowance 7090
taxable income 820
income tax 82
maintenance payment MAX 2280x10% 82
married couple allowance 5565x10% nil
tax due nil
Problem is how to get 5565. Should it be 5905, the basic rate.
Someone please help. This is deeper than normal PTC question in AAT.
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Comments
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Re:PTC- married couple allowance
If I understand your question, the answer you have gives the MCA at 5565?
This was the rate in 03/04, perhaps your answer has not been updated. the correct figure is as you state, 5905.0