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F6 Taxation (Annual allowance)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › F6 Taxation (Annual allowance)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
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  • Author
    Posts
  • February 21, 2021 at 7:18 am #611140
    sam92k
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    Hello there everyone,

    A question on Annual allowances.

    Does the Annual Allowances of 40,000 get used up by both the employer and employee contributions?

    Also there are 2 types of pension contributions:

    1. Occupational:

    Does the Annual allowances get used up by both the employer and employee contributions?

    2. Personal pension:

    Same question here, does the AA get used up by both the employer and employee contributions?

    A massive thank you for your help!

    🙂

    February 24, 2021 at 1:41 pm #611549
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    1.Yes – employer contributions as well as employee contributions count towards the AA – we look at the “total pension input”

    2. There are 2 types of pension scheme as you state and both employer and employee contributions count towards the AA as stated above

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