Week 2

Question 1

When are you entitled to MCA and maintenance relief?

Answer 1

If you or your ex partner are born before 6th April 1935 (must be divorced/separated)

Question 2

Married Couple Allowance (MCA) does not

Answer 2

Reduce taxable income but calculates an amount to reduce tax bill

Question 3

2019/20 max MCA allowance is

Answer 3

(£8,915 x 10%)=£891.50

Question 4

What is the income limit for MCA?

Answer 4

£27,750

Question 5

What happens if income exceeds the limit of £27,750?

Answer 5

MCA is reduced to (£3,450 x 10%)=£345

Question 6

What happens if marriage took part through the year (MCA)?

Answer 6

Reduced to the amount of months occupied in the year (8,915 or 3,450 x ?/12 x 10%)

Question 7

What happens to personal allowance if income exceeds £100,000?

Answer 7

Personal income is reduced to (£12,500 - 1/2 x exceeded amount)

Question 8

Where do you compute maintenance and MCA?

Answer 8

After income tax due computations and before final tax liability is calculated

Question 9

What do you do with gift donations?

Answer 9

1. Gift donation calculation = (gift donation x 100 / 80)
2. Adjusted income = total income - gift donation calculation (? x 100 / 80)
3. Basic/Intermediate rate increased by gift donation calculation (? x 100 / 80)

Question 10

How is property income calculated?

Answer 10

Property income (rent received) - deductible expenditures

Question 11

What do you do with property losses brought forward?

Answer 11

Deduct property income from losses brought forward. Any remaining losses brought forward will be brought forward the following year.

Question 12

How does income sheet look like with property income and property losses brought forward?

Answer 12

• property income
• other income
• total income
• (less) property losses b/f
• net income
• (less) personal allowance
• taxable income