Fred recently invested a legacy on the London Stock Exchange, earning dividends of £2,440. He also holds a cash ISA which earned £645 interest.

Required:

1. Calculate Fred’s income tax liability for the year 2021/22.
   You must include the profits and employment income calculated in Questions 1 and 2 in your calculation.

You will lose marks if you do not use the recommended layout shown in class.

2. How could Fred have reduced his tax bill for this year? 
3. If Fred also had savings that were not in an ISA, how would interest on this be taxed? What rate of tax would he pay on it? 

Answer rating: 100% (QA)

Calculate Freds income tax liability for the year 202122 Income ... View the full answer