Mr. Thomas is a certified accountant working for an audit firm in London. He is married to Ms. Lucy and have 3 children. Lucy is a housewife and do not have any other income. Mr. Thomas’s income and other relevant data for the fiscal year 2020-21 is given below.  Salary and other benefits from employment ₤ 47,200.  Trade income from his small business ₤ 2,000  Interest income from building society ₤ 3,400, from bank deposit ₤ 1,500 and national saving certificates ₤ 1,600.  Income from game winning ₤ 400  Dividend income ₤ 6,700  Contribution to gift aid ₤ 7,600 a. Calculate Mr Thomas’s taxable income and tax liability. b. Calculate child benefit tax assuming that Thomas and Lucy received ₤ 2,725 child benefit allowance during the year 2020-21. c. Can Lucy transfer her personal allowance to Thomas? If your answer is yes, what is the maximum amount personal allowance that is allowed to be transferred? (4 marks)
Course taxation accounting