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1. NARRATIVE
For starters, from 6 April 2010, tax is payable at the basic rate of
20% on taxable income up to $720,000. If you have more than
$720,000 of taxable income, you will have to pay a higher rate of
tax on the amount above this level. To calculate the tax payable,
you should:
work out the taxable income, after taking any allowances or tax
reliefs into account
calculate tax on your taxable income up to the limit of $720,000 at
20%, then
if you have taxable income over $720,000, calculate tax on the
taxable income over $372,000 at 40%, then
add the last two figures together. This is the amount of tax that is
payable for 2015 -16.
NARRATIVE