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During the tax year 2019/20, John made personal pension contributions up to the
maximum amount of available annual allowances, including any unused amounts
brought forward from previous years. These personal pension
contributions were in addition to the contributions he made to Surf plc’s
occupational pension scheme .
sir according to above condition remaining annual allowance is 523.
in case personal pension contribution why never gross 523pound like this annual allowance remaining amount is gross or net , in case gross please explain behind the logic?You have not supplied any numbers apart from a random figure of £523 which I therefore cannot help you with from what you have told me – but please understand we use the gross amount of personal pension contributions paid in the tax year in determining the use of any annual allowances
sir in case mr.kamran ask unused amount of annual allowance contribute into personal pension scheme let suppose that his remaning amount of unused annual allowance is £450. this amount contribute into personal pension scheme, in this case never gross this amount for band extend and personal allowance why we never gross this amount means unused annual allowance amount.
The reason is that, when an amount is considered in annual allowance, the amount is already grossed, we don’t need to gross up the amount. In the question, Surf plc, John has contributed in the remaining amount of capital allowance, if the amount need to be gross up then tax charge will arise.
Hope you understand.I regret that I am confused by the wording of the questions you pose – may I again ask if you have studied all the lectures and study notes before working questions, but I refer you to my first answer that the amount of personal pension contributions that you compare with the AA limit is the GROSS figure – the amount actually PAID into the scheme will be 80% of the gross figure
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