Question 1

Section A

Simon has a net income of £58,000. He makes a gross personal pension contribution of £4,000 and donates £1,000 (gross) to charity under Gift Aid. His partner claims Child Benefit for their two children. What is Simon's Adjusted Net Income (ANI) for the purpose of the High Income Child Benefit Charge (HICBC)?

Accepted Answer

Calculate Adjusted Net Income by taking Net Income and deducting gross pension contributions and gross Gift Aid donations.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Forgetting to deduct Gift Aid, or deducting net amounts instead of gross amounts.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 4

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