Pension – Annual Allowance Charge

Hello Sir,

Grateful If you could help,
Im having confusion relating to ann. all. charge.
Please confirm if the following is ok.

For 17/18;
Ann. All. Charge is £40,000

1) if gross contribution > £40,000;
Excess is taxable

2)a) if net income > £150,000;
Ann. All. Charge will be reduced by
(net income – £150,000) x 50%

2)b) if net income > £210,000;
Minimun Ann. All. Charge is £10,000

3) Ann. All. Charge will be increased by unused ann. all. charges of previous last 3 years on a FIFO basis.

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Referring to above, my answer for the following question:

Mr M. contributed gross cont. of £105,000 into his PPS and has an earning of £ 170,000 in tax year 17/18.
Mr M. pension cont. for last 3 years have been:
14/15 – £29,000
15/16 – £58,000
16/17 – £ 36,000

Calculate Mr M income tax liability

My answer for Income tax liability – £64,100

*(Ann. All. Charge calculated £71,000)

Thank You