Chapter 6 - Pensions Flashcards
1
Q
Who can contribute into a pension scheme?
A
The individual
any third party on behalf of the individual
2
Q
What are the two conditions for tax relief in a pension scheme?
A
- The pension scheme is a registered scheme
- The individual is in the UK ad aged under 75
3
Q
What is tax relief available on?
A
The lower of…
(1)Total gross pension contributions paid
(2) The higher of of
- 3600
- 100% of the individuals relevant earnings
4
Q
What is the annual allowance?
A
£40,000
5
Q
How can you increase your annual allowance?
A
Bringing forward any unused allowance from the previous three tax years
6
Q
What basis is the annual allowance used?
A
FIFO basis
