- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
- Posts
EXAMPLE 11
Monica and Nicola have made the following gross personal pension contributions during the tax years 2011–12, 2012–13 and 2013–14:Monika Nicola
£ £
2011–12 Nil 56,000
2012–13 42,000 29,000
2013–14 38,000 Nil
Monica was not a member of a pension scheme for the tax year 2011–12. Nicola was a member of a pension scheme for all three tax years.Nicola
Nicola has unused allowances of £21,000 (50,000 – 29,000) from 2012–13 and £50,000 from 2013–14, so with the annual allowance of £40,000 for 2014–15 a total of £111,000 (40,000 + 21,000 + 50,000) is available for 2014–15. The annual allowance for 2011–12 is fully utilised, but Nicola was a member of a pension scheme for 2013–14 so the annual allowance for that year is available in full.sir my problem is
from where does this 50000 pound come?they said that Nicola was a member of a pension scheme for 2013–14 so the annual allowance for that year is available in full.but we also added 40000 pound for current year so why should we add annual allowance of 13/14 tax year?please explainHave you read chapter 10 of the course notes? When computing the maximum total pension input before the AA charge applies the taxpayer will firstly use the AA limit for 2014/15 (40,000) PLUS any unused AA from the previous 3 tax years (50,000 pa) – unused AA is only available if the taxpayer was a member of a pension scheme in that tax year.
- You must be logged in to reply to this topic.