Annual allowance

Sorry but no - as the taxpayer has no relevant earnings tax relief will be given on £3,600 and of course as £3,600 is well within the AA limit of £40,000 the full £3,600 will qualify for tax relief but only the £3,600. If the taxpayer has relevant earnings of £100,000 then he/she could make a contribution of £100,000 BUT if this amount then exceeded the AA limit of the current year plus any unused AA b/f from the previous 3 years then an AA charge would arise on this excess.

My answer above states: "tax relief will be given on £3,600 and of course as £3,600 is well within the AA limit of £40,000 the full £3,600 will qualify for tax relief but only the £3,600." The £3,600 "is within the AA limit" - and therefore no AA charge will apply.