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You should assume that today’s date is 15 February 2019
(a) Rosie Rohan has been employed by Hornburg plc for a number of years on annual salary of 100000. On 6 April 18 she was promoted to MD and during the tax year 2018/19 Rosie was paid gross director’s remuneration of £220,000.
She has made the following gross personal pension contributions:
Tax year Pension contribution
£
2015/16 31,000
2016/17 16,000
2017/18 Nil
2018/19 90,000Rosie was a member of a pension scheme for the tax year 2017/18. She has no other sources of income
Required:
Advise Rosie Rohan of the total amount of pension scheme annual allowances that she has available for the tax year 2018/19.Sir here 1 thing I want to ask that since Rosie was member of a pension scheme for the tax year 2017/18 only, then how can we b/f unused annual allowance from 15/16 and 16/17? But in solution they have b/f unused AA from 15/16, 16/17 and 17/18
This is not a tax question as it arises out of a misunderstanding by you of the statement made in the question. As there were no contributions made in 2017/18 the examiner has made the situation absolutely clear that the taxpayer was still a member of the pension scheme for that year – the taxpayer was of course a member of the pension scheme in the other years as she actually made contributions into the scheme!
Ok, and sir when we say that all pension relief in any fiscal year individual must be member of registered pension scheme, so does it mean that in order to return working in any fiscal year (i.e TRC + Er cont in any pension of Ee + Ee cont in occupational pension of Ee – Annual Allowance) , one must be member of registered pension scheme in order to do this working? Correct?
Sorry but your question is unclear to me – but let me say again that if contributions are being made to a pension scheme during a tax year then clearly the taxpayer MUST be a member of a pension scheme and hence the necessary calculations must be performed.
If the taxpayer is NOT a member of a scheme in a tax year then no contributions can possibly be made and no unused AA may arise.
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