TAX - Ch – 3, 4 & 6

Petunia is a single parent with a two-year old son. She receives child benefit of €1,139 in the tax year 2023/24. Petunia has net income of €57,000 in 2023/24 and she made gross personal pension contributions of €2,000 during 2023/24.

What is Petunia's child benefit income tax charge for the tax year 2023/24?

• 1134

• 454

• 567

• 794

Troy is a sole trader who had trading income of €60,000 in the tax year 2021/22 and 80,000 in the tax year 2023/24. He has no other income. He joined a personal pension scheme on 6 April 2021 and made gross contributions of €25,000 in 2021/22. This was the first pension provision that Troy had made.

What gross amount can Troy contribute to his personal pension scheme in March 2024 without incurring an annual allowance charge?

• 135,000

• 25,000

• 40,000

• 55,000

. Luke rents out a room in his own residence throughout 2023/24. The rent is €150 a week. Luke's expenses Of the letting are €20 per week, none Of which is loan interest on the property.

What is the amount of property business income taxable on Luke for 2023/24 if he makes any relevant election?

• 6,760

• 0

• 7,800

• 300

Susie rents out a furnished house. The house does not qualify as a furnished holiday letting. The furnishings include a new sofa which was bought in the tax year 2023/24 to replace an old one which was disposed of at the same time. The old sofa cost £3,000 in 2015 and was disposed Of in January 2024 for proceeds of £200. The new sofa was bought in January 2024 for £5,500 and was larger than the Old one. If Susie had bought a newer sofa of the same model as the old one, it would have cost £4,000

What deduction against property business income can Susie claim for the cost of the sofa bought in 2024/24?

• 5,500

• 3,800

• 5,300

• 4,000

Amrul bought a house on 1 September 2023 and immediately let it out on a quarterly tenancy with rent of £900 being payable in advance on 1 September, 1 December, 1 March and 1 June each year. The tenant also paid a security deposit of £500. The tenant was still in the property on 5 April 2024.

Amrul paid a buildings insurance premium of 150 on 1 September 2023 for a 12-month period from that date.

Amrul drove 178 miles in his own car in relation to the letting during the period 1 September 2023 to 5 April 2024. He wishes to use approved mileage allowances to calculate his motoring expenses.

What is Amrul's property business income for the tax year 2023/24?

• 1,932

• 2,470

• 2,505

• 2,970

Abena has made the following gross contributions to her personal pension scheme over the past three tax years:

Tax year

2020/21 - 42,000

2021/22 - £37,000

2022/23 - £28,000

Abena's adjusted income did not exceed 240,000 in any tax year. What is the maximum gross contribution which Abena can make to her personal pension scheme for the tax year 2023/24 without giving rise to an annual allowance charge?

• 53,000

• 40,000

• 55,000

• 52,000

Niamhe has adjusted income for the tax year 2023/24 of 270,000. During the year, she made personal pension scheme contributions of €100,000 (gross). Niamhe has no brought forward unused annual allowances.

What is the amount of annual allowance charge to be added to Niamhe's taxable income for the tax year 2023/24?

• £75,000

• £60,000

• £96,000

• £25,000

Griff is employed by Gargoyle plc on an annual salary of £50,000. In addition Griff lets out

two properties:

(i)            qualifying furnished holiday accommodation which generates taxable income of £5,000 per annum, and

(ii)          a warehouse, let to a local business, which generates taxable income of £8,000 per annum.

In the tax year 2023/24 he made a £4,000 (gross) donation to a national charity under the gift aid scheme.

What are Griff's relevant earnings for pension purposes for the tax year 2023/24?

• 51,000

• 63,000

• 59,000

• 55,000

Roger is employed on an annual salary of £145,000. His employer has an occupational pension scheme into which Roger pays 2% of his salary and the company pays 5% of his salary. Roger also made a payment of £20,000 into a personal pension scheme in the tax year 2023/24.

What is Roger's net income (before deducting the personal allowance) for the tax year 2023/24?

• 142100

• 142105

• 152100

• 154120

. Natalia's only income in the tax year 2023/24 is trading income of £100,000 She also has an annual allowance charge of £10,000 as a result of making gross personal pension contributions of £50,000 in the tax year 2023/24.

What is Natalia's income tax liability for the tax year 2023/24?

• £19,486

• £21,432

• £27,486

• £31,432