- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
This has reference to Dec 2014 Tobias question (IHT mixed with pension) where Tobias became member of pension in TY 2012-13.
He paid pension of 2012 – Nil, 2013 – 26K and 2014 – 10K. The question asked the max contribution that Tobias can pay in 2014.
The answer was 24K for 2013 and 40K for 2014, totalling to 64K.
I presumed that since he was not member in 2012, he cannot pay up for 2012.
Next I did Dec 2012 Question Rosie Roshan – where he became member in 2014 and the calculation show that he is allowed to make contributions for 2013, 2012 and 2011 as per ACCA answer.
My doubt is based on 3 year logic why Tobia can’t pay the pension contribution for year 2012, since he became member in 2013, he can pay the full 50K for year 2012 also.
You must be a member of a pension scheme to have unused AA available to c/f from that year. You do not necessarily have to make any payments into the scheme, however, to be able to c/f the unused AA!
Are you looking at updated answers in an exam kit or just the past papers on the ACCA website?Thanks for the quick response, sir.
Dec 14 questions are not there in the Kit and I believe there are no changes except the threshold amount which got reduced from 50 to 40K.I am still not able to understand as to why Tobias who was member of pension scheme in 2013, cannot pay for 2012, 2011 and 2010. So in the year 2014 he can pay up the 50K for 2012 or not?
The question states:
” He has been self-employed since 6 April 2011, and has been a
member of a personal pension scheme from the tax year 2012–13 onwards.”
Therefore as I stated above you have to be a member of a pension scheme to have any unused AA to c/f for use within the next 3 years – Tobias only joined the scheme in 2012/13 so this is the first year for which unused AA is available to c/f!
- You must be logged in to reply to this topic.