Lecture 1

Question 1

Scottish tax rates

Answer 1

Starter rate 19
Basic rate 20
Intermediate 21
Higher 41
Additional 46

Question 2

Psa

Answer 2

Personal saving allowance
First 1000 taxed @ 0% if taxable income is up to 37500
Psa is 500 between 37501 and 150000
Additional no PSA

Question 3

Saving income

Answer 3

First 5000
PSA
Amount in 37500

Question 4

Personal allowance

Answer 4

PA is 12500 if ANI < 100000

More than 100000 then reduced by 50% then taken off 12500

Question 5

Dividend income

Answer 5

First 2000 free
Dividend falls in basic rate band 0-37500 taxed @ 7.5%
Higher band (37501-150,000) taxed @ 32.5%
Additional (>150,000) taxed @ 38.5%

Question 6

Tax reducers

Answer 6

Reduces amount of tax due
Allowance is ignored in computing the taxable income & taxes on it

Once tax due is computed
Tax due is reduced by 20% of married allowance
Tax due is reduced by 10% of married couple allowance

Question 7

Blind person allowance

Answer 7

£2500
The BPA deducted when calculating the tax payers taxable income
Can be transferred to spouse / partner is income isn’t big enough

Question 8

Marriage allowance

Answer 8

A person can transfer 10% of personal allowance to spouse
10% basic PA may be transferred to taxpayer spouse
Transferor/ee must not pay tax at the intermediate rate before or after transfer
None should have taxable income above 30930
Tax reduced

Question 9

Married couple allowance

Answer 9

Legally married / civil partners
Live together for at least part of tax year
One / both born before 1935
Amount = 9075
Allowance reduced by 50% of the excess adjusted net income over 30200
Tax reducer

Question 10

MCA Claimant

Answer 10

Married couples before 5/Dec 2005
Normally claimed by husband
Should be claimed by spouse with higher income

Question 11

Scottish rate bands

Answer 11

2085
10573
18272
119,070