John is employed by Surf plc. The following information is available for the tax year 2022/23: (1) During the tax year 2022/23, John was promoted and paid gross remuneration of £328,318. In each of the tax years 2019/20, 2020/21 and 2021/22 his adjusted income was below £150,000. (2) During the tax year 2022/23, John contributed £18,000 into Surf plc's occupational pension scheme. The company contributed a further £12,000 on his behalf. Both John and Surf ple have made exactly the same contributions for the previous five tax years. (3) During 2019 Surf plc provided John with a loan which was used to purchase a yacht. The amount of loan outstanding at 6 April 2022 was £84,000. John repaid £12,000 of the loan on 31 July 2022, and then repaid a further £12,000 on 31 December 2022. He paid loan interest of £90 to Surf ple during the tax year 2022/23. The taxable benefit in respect of this loan is calculated using the average method. (4) During the tax year 2022/23, John made personal pension contributions up to the maximum amount of available annual allowances, including any unused amounts brought forward from previous years. These contributions were in addition to the contributions he made to Surf plc's occupational pension scheme (see note (2)). John has not made any personal pension contributions in previous tax years. (5) John owns a holiday cottage which is let out as a furnished holiday letting, although the letting does not qualify as a trade under the furnished holiday letting rules. The property business profit for the year ended 5 April 2023 was £14,855 before taking into account interest and £1,875 paid to a letting agent. John paid loan interest of £7,500 for the year in respect of a loan to buy this property. Required (a) Calculate John's income tax liability for the tax year 2022/23.

To calculate John's income tax liability for the tax year 2022/23, we need to consider his various sources of income, pension contributions, and allowable deductions. Here's a step-by-step breakdown: 1. Employment Income: Gross remuneration: £328,318 2. Pension Contributions: John's personal contributions to the occupational pension scheme: £18,000 Surf plc's contributions on John's behalf: £12,000 Total pension contributions: £30,000 The annual allowance for pension contributions is £40,000 for the tax year 2022/23. However, for individuals with adjusted income over £240,000, the annual allowance is tapered. John's income exceeds this threshold, so his annual allowance will be reduced. For every £2 of adjusted income over £240,000, the annual allowance is reduced by £1, down to a minimum of £4,000. John's adjusted income is £328,318, which is £88,318 over the threshold. Tapered annual allowance calculation: £88,318 / 2 = £44,159 (excess over £240,000) £40,000 (standard annual allowance) - £44,159 (excess) = Reduced annual allowance (cannot be less than £4,000) Since the reduction would exceed the standard annual allowance, John's annual allowance is reduced to the minimum of £4,000. John's personal pension contributions are

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