Question 4a
Marking Guide
(a) Rent-a-room relief
Availability 1
Operation 1·5
Claim 1·5
Pension income 1
Property business income 0·5
8% loan stock 2
Personal allowance 1·5
––––
9
––––
| £ | |
|---|---|
| State retirement pension | 7,900 |
| Pension from former employer | 24,100 |
| Property business income ((£14,400/2) – £2,125) | 5,075 |
| 8% loan stock interest ((£18,000 x 8% x 6/12) + (£18,000 x 8% x 4/12)) | 1,200 |
| 38,275 | |
| Less: personal allowance (W) | (9,440) |
| Taxable income | 28,835 |
| £ | |
|---|---|
| Born between 6 April 1938 and 5 April 1948 | 10,500 |
| Less: ((£38,275 – £26,100)/2) – restricted to | (1,060) |
9,440 |
Tutorial note: Kesme has sold the loan stock cum interest. Under the accrued income scheme, Kesme will be treated as having received interest for the period from 1 June 2013 to 30 September 2013.