In the tax year 2019/20 Henry Murray has:
(1) Been working as a finance manager earning £75,000 per annum. He is provided with a petrol car by his employer, list price £24,000, with CO2 emissions of 123g/km. His employer pays for all the fuel for the car. He is also provided with a parking space at work in the centre of London that is worth £875 a year. There is a staff canteen available to all staff where Henry has a subsidised lunch each day; this costs him £1.50 and he estimates an equivalent meal elsewhere would be approximately £5.50. Henry had to pay professional subscriptions to the ICAEW of £395 this year.
(2) During the year Henry received interest on his bank savings account of £1,600 and dividends of £1,825. He has an ISA, on which he received £750 of interest during the year.
(3) In August 2019 Henry sold a painting for £23,400. He had to pay £400 for special packaging and agents fees of £1,000 from the proceeds. He bought the painting years ago at an auction for £250. In 1999 he had the the frame repaired at a cost of £75.
(4) Henry also runs his own consultancy business, teaching personal finance workshops. This year he made profits of £7,800 after deducting personal withdrawals of £3,000. He kept accurate mileage logs and charged £245 in business petrol costs to arrive at this profit, and also deducted the cost of gifts to his clients, amounting to £970.
Calculate Henry’s income tax liability for the year 2019/20. (25 marks)
Calculate Henry’s capital gains tax liability for the year 2019/20. What rate of tax will he pay on this gain? (4 marks)