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Additional info for ACCA - F6 - Taxation FA 2010: Study Text
Only the last of these will be directly felt by individuals, even if the other taxes are passed on by being factored into a business’s overheads. 2 Different types of taxes FAST FORWARD Central government raises revenue through a wide range of taxes. Tax law is made by statute. 1 Taxes in the UK Central government raises revenue through a wide range of taxes. Tax law is made by statute. The main taxes, their incidence and their sources, are set out in the table below. Tax Suffered by Source Income tax Individuals Partnerships Capital Allowances Act 2001 (CAA 2001); Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003); Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005); Income Tax Act 2007 (ITA 2007) Corporation tax Companies CAA 2001 as above, Corporation Tax Act 2009 (CTA 2009), Corporation Tax Act 2010 (CTA 2010) Capital gains tax Individuals Partnerships Companies (which pay tax on capital gains in the form of corporation tax) Taxation of Chargeable Gains Act 1992 (TCGA 1992) Inheritance tax Individuals Trustees Inheritance Tax Act 1984 (IHTA 1984) Value added tax Businesses, both incorporated and unincorporated Value Added Tax Act 1994 (VATA 1994) You will also meet National Insurance.
Calculate Clare’s taxable income for 2010/11. com 21 Answer Employment income Bank interest £6,400 x 100/80 Dividends £6,750 x 100/90 Net income Less: personal allowance (W) Taxable income Working Net income Less income limit Excess Personal allowance Less half excess £10,500 × ½ Non-savings income £ 95,000 Savings income £ Dividend income £ Total £ 8,000 7,500 7,500 110,500 8,000 7,500 109,275 8,000 95,000 (1,225) 93,775 110,500 (100,000) 10,500 6,475 (5,250) 1,225 Where an individual has an adjusted net income between £100,000 and £112,950, the rate of tax on the income between these two amounts will usually be 60%.
HM Revenue and Customs also issue: (a) Statements of practice, setting out how they intend to apply the law (b) Extra-statutory concessions, setting out circumstances in which they will not apply the strict letter of the law where it would be unfair (c) A wide range of explanatory leaflets (d) Business economic notes. These are notes on particular types of business, which are used as background information by HMRC and are also published (e) Revenue and Customs Brief. uk). Although the HMRC publications do not generally have the force of law, some of the VAT notices do where power has been delegated under regulations.