Random Notes Flashcards
1
Q
How is annuity income taxed?
A
- Paid net of basic rate tax
- Difference is then paid to/reclaimed from HMRC
2
Q
Your annual allowance for pension contributions can be reduced. When does this occur and what are the details?
A
Once your ‘adjusted income’ exceeds £240,000 p.a., your £40,000 allowance is reduced by £1 for every £2 over the threshold. It is capped at a minimum allowance of £4,000 which occurs when the adjusted income exceeds £312,000 p.a.
