Tx notes fa22 Final

June 2023 to March 2024 exams
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Dividend income in excess of the £2,000 nil rate band is taxed at:
‣
8.75% if it falls below the basic rate threshold of £37,700, 
‣
at 33.75% if it falls between the basic rate threshold of £37,700 and the higher rate 
threshold of £150,000, and 
‣
at 39.35% if it exceeds the higher rate threshold of £150,000.
 
Example 2 
Billy had a trading profit of £27,500 and received bank deposit interest of £10,000 in 2022/23.
Calculate Billy’s income tax liability in 2022/23 
 
Example 3 
Recalculate Billy’s income tax liability, assuming the bank deposit interest is now £25,000. 
 
Example 4 
Molly receives bank interest of £22,500 and no other income in 2022/23.
Calculate Molly’s income tax liability in 2022/23 
 
Example 5 
Polly has a trading profit of £13,500 assessable in 2022/23 and receives bank interest of £18,000
Calculate the income tax liability of Polly for 2022/23 

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June 2023 to March 2024 exams
Watch free ACCA TX lectures
 
Example 6 
Daisy received a salary of £19,500 (PAYE deducted of £1,400). She also received £10,000 bank 
deposit interest and dividend income of £1,000 in 2022/23.
Calculate Daisy’s income tax payable for 2022/23 
 
Example 7 
Recalculate Daisy’s income tax payable, assuming Daisy received a salary of £37,500 (PAYE 
deducted of £5,000), bank deposit interest of £13,000 and dividend income of £1,000.