Daisy had the following income for the tax year 2016/17: i) Gross Salary - 103,000 (her...

 

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Daisy had the following income for the tax year 2016/17: i) Gross Salary - £103,000 (her employer deducted PAYE of £32,600) ii) Property income - £16,000 iii) Bank interest received - £1,600 iv) Premium bond prize - £100 The property income consisted of: Property business income from letting out a furnished house Income from letting out a room in Daisy's house £ 9,000 7,000 Required: a) Prepare the income tax computation for Daisy for 2016/17, showing the tax liability and the tax due to be paid. 14 marks b) Daisy is thinking of establishing a business letting out holiday cottages. Explain the conditions that must be met for the letting of a cottage to qualify as a holiday letting for income tax purposes. Daisy had the following income for the tax year 2016/17: i) Gross Salary - £103,000 (her employer deducted PAYE of £32,600) ii) Property income - £16,000 iii) Bank interest received - £1,600 iv) Premium bond prize - £100 The property income consisted of: Property business income from letting out a furnished house Income from letting out a room in Daisy's house £ 9,000 7,000 Required: a) Prepare the income tax computation for Daisy for 2016/17, showing the tax liability and the tax due to be paid. 14 marks b) Daisy is thinking of establishing a business letting out holiday cottages. Explain the conditions that must be met for the letting of a cottage to qualify as a holiday letting for income tax purposes.

Answer rating: 100% (QA)

aGross salary 103000 Less PAYE 32600 70400 Property income 16000 Bank interest 1600 Premium bond pri... View the full answer