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Personal Pension Contribution relation with band rates

Forums › ACCA Forums › ACCA TX Taxation Forums › Personal Pension Contribution relation with band rates

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by viscera.
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    Posts
  • August 26, 2016 at 5:26 pm #335377
    viscera
    Participant
    • Topics: 2
    • Replies: 13
    • ☆

    confirm me that does personal pension contribution reliefs the Band rates by increasing them or not. In the Sep 2016 opentuition notes the practice question # 6 Michael, the answer did not relief the band rates by increasing the bands. It simply calculated the tax only and showed a deduction in Adjusted net income

    August 28, 2016 at 8:48 am #335721
    mak221022
    Member
    • Topics: 0
    • Replies: 5
    • ☆

    hi there,

    I just wanted to ask you in this case, For the treatment of PPS and GAD, they will be used in two points when it come to the income tax liability. The following points are:

    1- Calculation of Adjusted total income ( to be deducted from total income to get the amount eligible for personal allowance 10600).

    2- Expansion of bands to calculate the taxable liability.

    Why the second treatment is not done in the following question as our friend Viscera asked ?????

    September 3, 2016 at 12:31 am #337179
    viscera
    Participant
    • Topics: 2
    • Replies: 13
    • ☆

    I’ve asked some seniors about this .. they said PPC does reliefs the band rates, and in the question they have made a mistake ..

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