1. PTAX Personal Taxation
Savings & Investments
(Interest & dividends)

2. Objectives To be able to:
Explain the basis on which investment income is taxed
Identify income which is not taxed at source
Identify income which is exempt from tax
Gross-up income and calculate the tax due
Explain record-keeping requirements

3. Dividends
150,000
31,785
5,000
Savings
Non-savings 3

4. Taxation of Investment Income
Receipts or accrual?

5. Tax at source
What is meant when we say investment income is taxed at source?
What investment income is not taxed at source?

6. Gross (assessable) income: Questions
Net savings income = £160
20% tax already deducted
Gross = ???
Net dividend income = £270
10% tax already deducted

7. Tax-free Income
What investment income is exempt from income tax?

8. Record-keeping: Question
What records might you keep relating to investment income?

9. HOMEWORK Tutorial book questions 3.2, 3.1, 3.3-3,7, 1.2, 1.4, 1.5
Read chapter 3