Nathan, who has income of £65,000 in the current tax year, policy and has always maintained the premiums. It has now matured with a gain of £12,000. How mu tax, if any, will he be liable for on the gain?

Nathan, who has income of £65,000 in the current tax year, policy and has always maintained the premiums. It has now matured with a gain of £12,000. How mu tax, if any, will he be liable for on the gain?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Nathan, who has income of £65,000 in the current tax year, took out a ten year qualifying endowment
policy and has always maintained the premiums. It has now matured with a gain of £12,000. How much
tax, if any, will he be liable for on the gain?
None
£2,400
£3,000
£4,800

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