R03 brain explosion

Andy_S Member
edited January 2017 in CPD & Exams
This is not a good start and I'm hoping someone can help me. 

I've just started R03 and I'm at the end of the first chapter (income tax) and I can't work out where the figures have come from in the example.

The scenario is thus:

For 16/17 a discretionary trust receives dividend income of £2,000.

The trustees pay 7.5% tax on the first £1,000 and 38.1% on the excess.  Tax payable £456   All ok so far - I get it up to here.

However, this is where I am scratching my head, as it goes on to say:

If the trustees accumulate the income within the trust, then £1,800 - £456 = £1,344 is rolled up within the trust.

I can't work out where £1,800 has come from.  It can't be the tax credit as this was abolished from April 16.  I would be forever grateful if someone can explain to me how this has been calculated.  It might also help me to understand the rest of the figures in the example as I think my brain farted at £1,800
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