E1.910A Personal allowance—example
This example illustrates a point made in E1.910.
Example 1—interaction between the personal allowance and foreign tax relief
Lydia, who lives in England, has a UK employment income for 2021/22 of £95,000 and overseas property income of £8,500 net of overseas tax of £11,500.
Her UK tax liability for 2021/22, before double taxation relief, is:
|Overseas property income (£8,500 + £11,500)||20,000|
|Deduct: personal allowance||12,570|
|Less: (£115,000 – £100,000) × 50%||(7,500)|
|Non-savings income||37,700||@ 20%||7,540|
The tax liability, excluding overseas property income is:
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial