Ch5: Pensions Flashcards
(1) Contributions to Pensions (2) Annual Allowance
1
Q
Tax Relief for individuals who invest into the Pension Scheme:
A
Tax Relief is limited to the HIGHER OF:
(a) £3,600
(b) Relevant Earnings
2
Q
Formula for when an grossing up contributions to a PPC.
A
BRB:
[ £37,700 + (Contribution x 100/80) ]
HRB:
[ £125,140 + (Contribution x 100/80) ]
Do this when calculating taxable income.
3
Q
Which of the contributions do you gross up? Personal or Occupational Pension Contributions
A
Personal Pension Contribution (PPC)
4
Q
What is the Annual Allowance for Pension Contributions?
Can it be C/F if not fully utilised?
A
£40,000
Can be C/F for up to 3 years, BUT only if they are a member of a scheme.
5
Q
What is the Lifetime Allowance for Pension Contribution?
A
£1,073,000
Excess = 55% charge
