Tx notes fa22 Final

Income tax liability
56,288
Less tax deducted of source
PAYE
(48,520)
Income tax payable
7,768
Net income
167,000
Less Gift aid 3,200 
×
100/80 =
(4,000)
Adjusted net income
163,000

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319
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4. Mr & Mrs Mature 
Mr Mature Income tax Computation 2022/23
As Mrs Mature is not using any of her personal allowance and Mr Mature is only a basic rate 
taxpayer an election should be made to transfer £1,260 of her personal allowance to him which will 
result in a tax saving on his computation of £252.
As 90% of Mrs Mature’s personal allowance is being wasted even with the election in force it would 
be advised that the property should instead be put into joint ownership and as such the income from 
a jointly owned asset will be split 50:50 between the spouses, allowing Mrs Mature to use all of her 
personal allowance and thus remove a significant amount of the property income from tax.
If this advice was followed then based on the 2022/23 figures a tax saving of £2,250 would be 
achieved (see below).
Revised calculations: 
Non 
savings
Total
£
£
Property Income
35,000
35,000
Total Income
35,000
35,000
Less: Personal Allowance 
(12,570)
(12,570)
Taxable income
22,430
22,430
Income Tax
22,430 @ 20% =
4,486 
Less: Marriage allowance (1,260 x 20%) (note 1)
(252)