20 GEORGE

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July 24, 2017 at 12:18 pm #398391
yceng1
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Hi Tax Tutor,

With reference to practise Q20 GEORGE, part b, 2016/17 personal pension contribution of 90000 is reduced by tapered 2016/17 AA of 30000 and 30000 b/f unused AA of 2015/16.

I am confused by the AA b/f of 30000. In 2015/16, income is 170000, the AA needs to be tapered by (170000-150000/2) to 30000, he made a 10000 personal pension contribution, unused AA b/f should be 30000-10000=20000 instead of 30000?

Appreciate your advice.

Thanks.
July 25, 2017 at 6:20 am #398519
Tax Tutor
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If you refer to p.70 of the course notes you will see that this topic is introduced with the statement “For the tax year 2016/17 onwards ………”, hence no tapering for 2015/16
July 25, 2017 at 8:58 am #398543
yceng1
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Hi Tax Tutor,

Thank you so much for the clarification.

Thanks.
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