a) Maryanne is a non-Scottish taxpayer and received the following incomes during the tax year 2021-22: Gross salary from employment (PAYE deducted at source £3,100) £32,000 Bank interest of £2,160 Dividends of £2,500 Gross qualifying charitable donation £900 Required: Calculate Maryanne’s income tax payable for the tax year 2021-22.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 6BCRQ
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a) Maryanne is a non-Scottish taxpayer and received the following incomes during the tax year 2021-22:

  • Gross salary from employment (PAYE deducted at source £3,100) £32,000

  • Bank interest of £2,160

  • Dividends of £2,500

  • Gross qualifying charitable donation £900

    Required: Calculate Maryanne’s income tax payable for the tax year 2021-22.

b) Mrs Jones is a very generous person who likes to donate her time and money towards improving the lives of other people. During the tax year 2021-22, she made a qualifying Gift Aid donation of £900 to a mental health charity based in London. Mrs Jones did not have any capital gains tax liability during 2021-22.

Required:

Explain circumstances which the donation made by Mrs Jones might cost her less than £900.

Explain why the donation is worth more than £900 to the mental health charity which receives.

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