Hi Sir,
Hope you are well!
In BPP kit in the above mentioned question I am unabel to understand the Annual allowance calculation performed :
Ques - Each tax year since 6 April 2013 (including the tax year 2020/21), Downtown plc has
contributed £25,000 into the company's HM Revenue & Customs' registered money
purchase occupational pension scheme on Petula's behalf. Petula has never personally
made any pension contributions. Petula's adjusted income for 2017/18, 2018/19 and
2019/20 was below £150,000. CY income is >312,000
Advise Petula of the total amount of her unused pension annual allowances which are
available to carry forward to the tax year 2021/22.
Now I understand that for CY of 2020/21 there will be max of 4,000 and for rest 3 years will be :
19/20 Brought forward 15000
18/19 Brought forward 15000
17/18 Brought forward 15000
max contribution 45000
I am not sure what next where I am getting wrong here ?
Ask the Tutor ACCA TX-UK
BPP practise kit - Petula
The question as you have written above is asking -
"Advise Petula of the total amount of her unused pension annual allowances which are available to carry forward to the tax year 2021/22".
It is not asking you to calculate the max contributions in 2020/21.
I presume the answer will then show the calculation of the amount to be c/f to 2021/22
Yeah and I am not understanding how I am suppose to go ahead from this ?
can you please advice?
Work out what the total pension allowance available is for 20/21 - how much of that would be used in 20/21 and therefore what was to be c/f to 21/22 - once again I would have thought the BPP answer would show the calculation?
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