During the tax year 2020/21, Sona has Rental income of 50,000, Employment income of f120,000, Interest...

 

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During the tax year 2020/21, Sona has Rental income of £50,000, Employment income of f120,000, Interest from Government Bond £12,000, Interest on National Savings Certificate £2,000. She borrowed a loan for the purchase of a computer system, she paid interest of £1,200, which is eligible to claim the deduction from total income (eligible interest). a) You are required to assess the taxable income of Sona and Compute the tax liability for the tax year 2020/21. b) As of now, Sona has not thought about giving a donation to charity and/or contributing to the personal pension scheme. She needs your advice regarding the donation and personal pension scheme, if she donates £6,000 to charity and £8,000 to Personal Pension Scheme. You are required to analyze and advise Sona of the implication of donation and personal pension contribution. Your answer should include relevant calculations and tax-saving because of such donation and Pension Contribution. (150-200 words) e) Continuing (a) above, Sona heard about Saving Nil Rate Band and Dividend Nil Rate Band. But she is not sure about it. She could not understand why she is unable to get Saving Nil Rate Band for the (a) above. Anyhow, she is not bothered about Dividend Nil Rate because she does not have any dividend income. You are required to explain clearly the concept of Saving Nil Rate Band and Dividend Nil Rate Band. Explain why Sona is unable to claim SNR in (a) above. During the tax year 2020/21, Sona has Rental income of £50,000, Employment income of f120,000, Interest from Government Bond £12,000, Interest on National Savings Certificate £2,000. She borrowed a loan for the purchase of a computer system, she paid interest of £1,200, which is eligible to claim the deduction from total income (eligible interest). a) You are required to assess the taxable income of Sona and Compute the tax liability for the tax year 2020/21. b) As of now, Sona has not thought about giving a donation to charity and/or contributing to the personal pension scheme. She needs your advice regarding the donation and personal pension scheme, if she donates £6,000 to charity and £8,000 to Personal Pension Scheme. You are required to analyze and advise Sona of the implication of donation and personal pension contribution. Your answer should include relevant calculations and tax-saving because of such donation and Pension Contribution. (150-200 words) e) Continuing (a) above, Sona heard about Saving Nil Rate Band and Dividend Nil Rate Band. But she is not sure about it. She could not understand why she is unable to get Saving Nil Rate Band for the (a) above. Anyhow, she is not bothered about Dividend Nil Rate because she does not have any dividend income. You are required to explain clearly the concept of Saving Nil Rate Band and Dividend Nil Rate Band. Explain why Sona is unable to claim SNR in (a) above.

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Taxble Income of Sona Pound Rental Income 50000 Employment I... View the full answer