Your friend is a higher rate taxpayer and has a large amount in a savings account which is earning 3% interest. He is worried that he will exceed the £500 of interest that he can earn free of tax as a higher rate taxpayer. Work out for him how much he would need to have in his savings account for a year before he exceeded the £500 limit.

Your friend is a higher rate taxpayer and has a large amount in a savings account which is earning 3% interest. He is worried that he will exceed the £500 of interest that he can earn free of tax as a higher rate taxpayer. Work out for him how much he would need to have in his savings account for a year before he exceeded the £500 limit.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 84IIP

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