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what is the difference between calculation of incuring an annual allowance charge and one without incurring annual allowance charge
There will only be an AA charge if the gross contributions made exceed the AA limit for the tax year plus any unused AA b/f from the preceding 3 tax years.
but why does it put without incurring an annual allowance charge in this question
Padma became a member of a personal pension scheme on 6 april 2012 and has made gross personal pension contributions as follows
2012/13 £23000
2013/14 £40000
2014/15 £45000
Padma’s tax adjusted trading income in the tax year 2015/16 is £300000What is the maximum gross personal pension contribution that Padma can make in the tax year 2015/16 without incurring an annual allowance charge?
I have done this and I think it will help u to understand . But I m unable to attach the pic of my workings on my note. The way I did my workings Cnt write it down here properly. If u interested let me know how come I help u .
Thanks
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