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Jean96.
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Jean96
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Nicola has made the following gross personal pension contributions during the tax years 2012-2013,2013-2014 and 2014-2015
Nicola
2012-2013 56000
2013-2014 29000
2014-2015 Nil
Nicola was a member of a member of a pension scheme for all 3 years
what is the maximum gross pension contribution nicola can claim in the tax year 2015/16
Tax Tutor
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Show me your attempt at the question!
Jean96
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nicola
2015/16 a.a 40000
unused a.a b/f 61000
maximum gross ppc 101000working unused a.a
2012/2013 nil
2013/2014(50000-29000) 21000
2014/2015(40000-0) 40000
61000
my question is why is 2012/2013 nil it should not be (6000)Tax Tutor
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Look at the numbers – the gross contributions are larger than the AA limit not smaller so there is NO unused AA available from that year. There would have been an AA charge in that year as a result (subject to what preceded it) – you do not carry forward a negative balance!
Jean96
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but why in this answer 2014/15 is deducted from total
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?
2015/16
2015/16 annual allowance 40000
unused annual allowance(w) 32000
maximum gross ppcs 72000working unused annual allowances
2012/2013(£50000-£23000) 27000
2013/2014(£50000-£40000) 10000
2014/2015(£40000-£45000) used in 2014/15 (5000)
unused annual allowance 32000Jean96
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answer plz
Tax Tutor
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In the first example there was no unused AA b/f into 2012/13 so that an AA charge of 6,000 would arise whereas in the second example in 2014/15 there is unused AA of more than 5,000 b/f from previous 2 years. Thus the 45,000 would be all be allowable in 2014/15 and the unused AA c/f would be reduced by 5,000.
Jean96
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sorry, i dont understand your answer could it be clearer?
in the first example in 2012-2013 (50000-56000)=(6000); the unused AA is Nil
in the 2nd example, why do we have to add the (5000) for 2014-2015 to the total of the 2 preceding years, should it not be NIL as in the 1st example?
Thanks beforehand for your help.
Jean96
Tax Tutor
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