Annual Allowance

Hello,

Basil is employed. During the tax year 2018/19 Basil had a taxable income of £160,000 which was all employment income. Basil made contributions of £50,000(gross) into a personal pension scheme during the tax year 2018/19. This was the first year that he had been a member of a pension scheme. In the future, his employer may contribute to Basil’s personal pension scheme.

-What is Basil’s annual allowance charge for the tax year 2018/19?

1. Could you just explain what does annual allowance charge mean?
– The answer is £6000. Without having an understanding of annual allowance charge, I am unable to obtain the answer.

Thanks.