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Pension Contributions in excess of Relevant Earnings

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Pension Contributions in excess of Relevant Earnings

  • This topic has 2 replies, 3 voices, and was last updated 8 years ago by Tax Tutor.
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  • May 29, 2016 at 10:59 am #317914
    tanwhu
    Member
    • Topics: 4
    • Replies: 7
    • ☆

    I apologize if this question has already been asked before, but I would like to know the tax treatment of Personal Contributions in EXCESS of the Relevant Earnings. Is it only the excess over the R.E that loses potential tax relief or the entire sum?

    May 31, 2016 at 6:40 am #318257
    samh
    Member
    • Topics: 15
    • Replies: 42
    • ☆☆

    If pension contributions should be restricted to the higher of RE or 3600 of gross contributions, and only this one will attract tax relief. Any excess will not attract tax relief.

    May 31, 2016 at 11:24 am #318366
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Assuming RE exceeds 3,600 it is only the excess that does not get tax relief

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