Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year 2019/20, she has earned income from different sources. She earned £88,800 through employment income. She is also doing a business through which she earned a taxable income of £16,000. She invested £82,000 in equity and earned £10,800 dividend income. In the year 2018, she made investment in business society and received £4,600 interest during this tax year. She also invested ISA and received interest income of £24,000. She has a taxable rental income of £4,000 from properties. Situation 1 You are required to calculate Rose’s income tax liability for the year 2019/20. Situation 2 Assume Rose has paid £4,000 towards a gift aid donation during the year 2019/10, re-assess her tax liability.
Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year 2019/20, she has earned income from different sources. She earned £88,800 through employment income. She is also doing a business through which she earned a taxable income of £16,000. She invested £82,000 in equity and earned £10,800 dividend income. In the year 2018, she made investment in business society and received £4,600 interest during this tax year. She also invested ISA and received interest income of £24,000. She has a taxable rental income of £4,000 from properties.
Situation 1
You are required to calculate Rose’s income tax liability for the year 2019/20.
Situation 2
Assume Rose has paid £4,000 towards a gift aid donation during the year 2019/10, re-assess her tax liability.
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