Hi,
In a practice question, John has net income of £194,375. That is after deducting his £38,000 occupational pension contributions (net pay). His employer also contributes £30,000. He has no personal pension contributions.
The model answer tapers the annual allowance because adjusted income is £262,375.
But according to the ACCA exam advice, threshold income = net income − personal pension contributions = £194,375. That is below £200,000, so shouldn’t the AA stay at £60,000 without tapering?
Thanks!