- This topic has 3 replies, 2 voices, and was last updated 9 months ago by Tax Tutor.
- You must be logged in to reply to this topic.
ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>
20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>
Rosie has recently been promoted to managing director at Hornburg plc. During the tax year
2020/21 Rosie was paid gross director’s remuneration of £260,000 and she received dividend
income of £500,000. She had income of £130,000 in 2017/18, 2018/19 and 2019/20. She has
made the following gross personal pension contributions:
Tax year Pension contribution
Rosie was a member of a pension scheme for the tax year 2019/20 but not in the tax year
2017/18. Since 2018/19 Hornburg plc has made an employer’s contribution of £10,000 per annum.
What is the total amount of pension scheme annual allowances that Rosie has available
for the tax year 2020/21?
ANSWER= 48000(4000 IN 20/21 TAPERING+40000 IN 19/20 +4000 IN 18/19(36000-40000)
DOUBTS – Since 2018/19 Hornburg plc has made an employer’s contribution of £10,000 per annum.SO CONTRIBUTION IN 18/19 INCREASE BY 10000 , SO THE CONRIBUTON IN 19/20 SHOULD ALSO BE INCREASE BY 10000 LEAVING WITH BALANCE ALLOWANCE OF 30000 RIGHT? MAKING THE ANSWER 38000?
If there was an employers contribution of 10,000 in 2019/20 then there would be only 30,000 unused AA to c/f
right but Since 2018/19 Hornburg plc has made an employer’s contribution of £10,000 per annum .they have used the word SINCE 18/19 that means employer must hve contributed 10000 in 19/20 right?
If the question states as you have described – since rather than in – then you are correct.
Where did the question come from?