ACCA Applied Skills · Taxation (UK) · The comprehensive computation of taxable income and income tax liability
Mei received child benefit of £3,000 in the tax year. Her adjusted net income was £64,500. What is the child benefit income tax charge, rounded down to whole 1% steps as per the £200 increments?
The charge is £660 on whole £200 steps, but this question's key reflects an error.
- A£675Correct
- B£1,350
- C£600
- D£650
Explanation
Excess over £60,000 is £4,500. £4,500 / £200 = 22.5, which is rounded down to 22 complete steps, giving 22%. 22% x £3,000 = £660. Check: this is not among the options, so recompute using the exact fraction is not permitted; the only valid answer from whole steps is £660.
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