- This topic has 1 reply, 2 voices, and was last updated 1 month ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Treatment of Personal Pension Contributions
Ref question 207- Dembe
This is what the answer quotes:
“Before making the personal pension contribution, Dembe’s adjusted net income of £130,000 exceeds £125,140,so no personal allowance is available.The personal pension contribution will reduce Dembe’s adjusted net income to less than £100,000 (130,000– 40,000 =90,000), so the personal allowance will be fully reinstated.”
I would like to know if it’s a fixed thing for the personal pension contributions to be deducted from the income to get the chargeable income while also increasing the basic band threshold for 20%?
ANI calculation is in the manual – income less gross pension and gross gift aid payments – that determines whether or not the personal allowance is available or not