Jointly owned property, taxation of children and illustration

In this lesson

1. 0:00 Jointly owned property and tax treatment
2. 1:29 Taxation of children's income
3. 3:00 Colin's income tax computation walkthrough
4. 5:01 Calculating taxable income and allowances
5. 6:26 Applying tax rates and nil rate bands
6. 7:42 Deducting tax at source and final payable

About this lesson

You'll also discover the key rule: income from sources established by a parent—such as bank accounts or share portfolios set up in a child's name—is taxed on the parent, not the child, unless the gross income is £100 or less and the child is under 18 and unmarried. The lesson works through a detailed example involving Colin, who receives employment income, property income, savings interest, and dividends. You'll see how to correctly allocate the 50/50 property split regardless of actual ownership percentages, identify exempt dividend income from ISAs, and crucially, recognise when a child's interest income must be added to the parent's computation. The worked example demonstrates the full income tax calculation, including the correct application of savings and dividend nil rate bands for higher rate taxpayers, and shows how to arrive at the final tax payable after deducting PAYE at source. This is essential knowledge for TX and will help you avoid common exam pitfalls around jointly owned property and parental income attribution.

Duration: 9m