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 2016/81. 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 2016/81?

(b) What is the total tax liability for that year?

B

(a) Sarah Jones leaves school and starts work on 6 October 2016. 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


Refunds, Personal And Business Finance 2017

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