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Pensions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Pensions

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by Tax Tutor.
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  • April 27, 2020 at 1:24 pm #569353
    aarti2407
    • Topics: 7
    • Replies: 2
    • ☆

    Hello Sir,

    I had a small doubt in the following statement that i found in my Study text:

    ” An individual with no relevant earnings can still obtain tax relief on gross contributions of up to 3600 pounds per annum.”

    sir but if the individual has nil relevant earnings how is he going to take advantage of 3600 pounds tax relief, even though he somehow(loan etc.) manages to contribute towards his pension a sum of say, 3600 pound?

    Any help would be much appreciated:)

    April 28, 2020 at 9:45 am #569408
    Tax Tutor
    Keymaster
    • Topics: 2
    • Replies: 3477
    • ☆☆☆☆☆

    Just because an individual has no relevant earnings does not mean that they do not have the cash available to make a pension contribution – for example a taxpayer may have investment income or savings.

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