hello Sir
i am confused when should i refer to relevant uk earnings and when to effective annual allowance.
for example if a trading profit is 34000 and pension contribution is 40000 gross then shall i see the greater of 3600 and 34000. and when do we add the excess contribution to the relevant uk earning please clear it
regards
Ask the Tutor ACCA TX-UK
personal pension contributions
Only 34,000 would achieve tax relief with no relief for the excess. The AA is not relevant as the qualifying contributions have not exceeded 50,000. Review illustration 2 chapter 9
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