June 2023 to March 2024 exams Watch free ACCA TX lectures
Proforma income tax computation for 2022/23 * Employment income, salaries or wages, must be included gross before deduction of taxes at
source by the employer and will always be stated gross within the question.
** Deductions from Total Income and the deduction of the PA from Net Income are deducted in order
from firstly non savings income, then savings income and finally dividend income for purposes of this
exam.
In computing Taxable Income, UK taxpayers may be entitled to a deduction of a Personal Allowance
(PA), a level of tax free income. The details of this are in Section 3 of this chapter, but the normal PA
available is £12,570 for the 2022/23 tax year.
2.1. Exempt Income The following are the main examples of sources of income that
are exempt from income tax:
(a)
Interest or bonuses on National Savings & Investment Certificates
(b)
Interest and dividends within an Individual Savings Account [ISA]
(c)
Gaming, lottery and premium bond winnings
Non- savings income Savings income Dividends Total £
£
£
£
Trading Profit
X
X
Less Trading Loss relief – brought forward
(X)
(X)
X
X
Employment Income*
X
X
Property Income
X
X
Dividends from UK companies
X
X
Building society interest
X
X
Bank deposit interest
X
X
Other interest
X
X
TOTAL INCOME X
X
X
X
Less**
Qualifying interest
(X)
(X)
Other Trading Loss reliefs
(X)
(X)
NET INCOME X
X
X
X
Less: Personal Allowance (PA)
(X)
(X)
TAXABLE INCOME X
X
X
X
21
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