Popular Reading
Direct Taxation Exercise
(a) Explain the discrepancy between rent payable and rateable value.
(b) If rates are levied at 88p in the £, what will be the amount of rates per
year that Mr Fraser will have to pay?
(c) If the 88p rate demand raises a revenue for the local authority of
£4,500,000 a year, what increase in rates would be required to raise the total revenue by £1,125,000?
(d) Mr Fraser complains that his friend's house, larger than his and set
in a larger garden two miles out of town, has a lower rateable value. Suggest possible explanations for this if (i) the house is in the same local government area; and (ii) the house is in a different area.
Taxation Exercises
A Harry Pinkerton, a married man, earns £12,700 a year, and his wife earns £4,000, in the tax year 2000/81. There is a mortgage of £15,000 on their home on which they pay interest at 14.5% for the whole of the tax year.
(a) What is the net taxable joint income of this couple for the year 2000/81?
(b) What is the total tax liability for that year?
B
(a) Sarah Jones leaves school and starts work on 6 October 2000. During the tax year to 5 April 2001 she earns a weekly wage of £50.50. Using the rates quoted in this website calculate her taxable income... see: Taxation Exercises