CeMAP help needed......Please

MightyG77

Good Morning everyone.....I dont know if this is the right forum or if anyone will be able to help me at all but im struggling.....

I have my CeMAP 1 paper booked in for the end of February and its my 3rd and final attempt and im struggling on taxes....

I just cant find out anywhere how to work out how much tax people are likely to pay on things like dividends, OEICs, Investments, Unit trusts, Investment Trusts, GILTS....etc etc....

Anyone who can help would be much appreciated as my book doesn't explain it properly it tells me things like its paid net of 10% tax....but in my previous 2 attempts ive been asked to work out how much tax a tax payer would need to pay....10%...20%...etc.

If I have posted in the wrong forum then please accept my apology.....but anyone who could help then please do...

Thanks to all in advance...

Geoff.

beckysbobbles1

When I completed the exam many years ago, I found the book pretty good.

Basically dividends are paid net of 10% tax. Even if these are in an ISA, the 10% tax is always paid (it can not be reclaimed).

The 10% tax satisfies the basic rate tax payers requirement. No further tax to pay.

However, if you are a HRTP then you will have to pay the difference of 22.5% in your tax return.

Does this make sense?

MightyG77

Yeah I understand that but speaking to other people in work there is also tax to pay on things like unit trusts and investment trust....and I think its 20%....im just struggling cos the tax calculations let me down on my last attempt.

Am I right in saying that as long as your a basic rate tax payer then it is always going to be calculated at 10%.....?

sweetypie01

Hi Geoff have you already given the exam or still need help with taxes?