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Regarding Pension Scheme

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Regarding Pension Scheme

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by JillyB.
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  • October 13, 2022 at 9:51 am #668506
    JohnnySins
    Participant
    • Topics: 60
    • Replies: 38
    • ☆☆

    Sir for example if
    18/19 = gross contribution 1000
    19/20 = gross contribution 1000
    20/21= Gross contribution is 60,000 The relief on AIA would be =40,000+30,000+30,000= 130,000 But is say relevant earning for 20/21 is just but the relevant earning is 50,000 then the maximum relief Then maximum relief is 50k only sir? even though we have AIA exceeding 60 k

    October 13, 2022 at 4:43 pm #668547
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    I’m really sorry but this question does not make sense.
    Topic is pensions is it?

    October 14, 2022 at 7:03 am #668571
    JohnnySins
    Participant
    • Topics: 60
    • Replies: 38
    • ☆☆

    Sorry About that Sir, Gross contribution to the personal pension scheme. If we have relevant earnings of 50,000 this year and Annual allowance for pension scheme of 60,000(40,000 this year plus 20,000) previous year. Then the maximum relief available is 50,000? this year since the relavant earning is 50,000?

    October 14, 2022 at 3:46 pm #668619
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    Tax relief is available on pension contributions up to the amount of the relevant earnings. in this case £50k
    Where contributions are paid in excess of the annual allowance there will be an annual allowance charge.

    Chapter 10 of the notes explains how this works.

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