Income tax computation

Question 1

Definition of Adjusted net income

Answer 1

net income less gross gift aid donations and gross personal pension contributions

Question 2

How to give a benefit on gift aid donations

Answer 2

x 100/80

Question 3

4 qualifying purposes for interest on loans being deductible

Answer 3

loans to buy p&m for use in employment
loans to buy an interest in a close company
loans to invest in a partnership
loans to pay inheritance tax

Question 4

When does an income charge tax apply due to a child benefit

Answer 4

a taxpayer or their partner receives child benefit and one of them has an ANI over £60,000. The charge is added to the partner with the higher ANI

Question 5

Exempt income

Answer 5

Income from ISAS
interest on National Savings Certificate
winnings
some social security benefits
first £7500 of gross annual rents from letting under a rent a room scheme
scholarships
income tax repayments interest
universal credit
apprenticeship bursaries
payments made under compensation schemes

Question 6

How much is the transferable marriage allowance

Answer 6

£1260