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Dear Sir,
With reference to OT notes Chapter10- Pensions, Example 1, I do not know how you calculated Actual Gross computation as 65000. can you please explain.
Aston had a annual salary of 120000
Gross amount of contributions were :
– 2009/2010: 62000.
– 2010/2011: 30000
– 2011/2012: 25000Compute 2012/2013 total pension input allowed.
Thank u
Did you watch F6 lecture where tutor solves this question?
https://opentuition.com/acca/f6/pension-contributions-continued-annual-allowance-aa/yes i did, i even re-winded the lecture three times and checked at the answers in the back
The first part of the answer shows the calculation of the total pension input allowed – the maximum gross contribution, without incurring the AA charge. This is the 95,000 and is the computation required to answer the question..
The next part of the answer simply illustrates how the AA and unused AA b/f would then be utilised with figures given to you to use for this purpose!! These figures are not calculated they are given to you for illustrative purposes! The answer says “IF therefore in 2012/13 Aston made a gross contribution of £65,000” This is a made up figure as is the figure in the next paragraph of £40,000 for 2013/14!!
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