ACCA Applied Skills · Taxation (UK) · Income from employment
Which of the following best describes how the child benefit income tax charge applies when income is between £60,000 and £80,000, according to the tax tables?
The charge is 1% of the child benefit received for every £200 of income over £60,000, applying where income lies between £60,000 and £80,000. It is a percentage of the benefit received, not of the income.
- A1% of the child benefit received for every £200 of income over £60,000Correct
- B1% of the child benefit received for every £100 of income over £50,000
- C1% of the income over £60,000
- DThe charge is a fixed 50% of child benefit received
Explanation
The tax tables state that where income is between £60,000 and £80,000, the charge is 1% of the child benefit received for every £200 of income over £60,000. The other options use the wrong threshold, step or base.
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