5. Taxable Income Flashcards

1
Q

What is the personal allowance?

A

Tax free income given to individuals.

£12,500 per annum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the personal allowance restriction?

A

When an individuals adjusted net income exceeds £100,000 the personal allowance is restricted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How do you calculate the personal allowance restriction?

A

1/2 ( Adjusted net income - £100,000 )

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How do you calculate the adjusted net income?

A

Total income - gift aid payments (gross) - personal pension contributions (gross)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly