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Pensions Tax Relief Tax Year End Quiz

Session: 13 January  2021

Each tax year end our technical team get asked a lot of questions about tax and pensions! This year our technical team hosted three tax year end themed quiz webinars. On this webinar, Mark Devlin, Senior Technical Manager covered the common things to think about when it comes to pension tax relief with a tax year end slant on things. 

Learning Outcomes

  • High level understanding of the taxation system
  • How tax relief works for the various contribution methods
  • Understand Tax relief planning and how you can get higher rates of relief

Presenter – Mark Devlin – Senior Technical Manager

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1.      How much tax relief does a member earning £11,000 a year get on making a £1,000 contribution to their net pay workplace pension scheme? 

a.      0%

b.      20%

c.       40%

d.      45%

2.      How much can someone earning £200,000 a year personally put into a pension as a gross amount and obtain tax relief?

a.      £40,000

b.      £40,000 (less anything their employer has put in)

c.       £160,000

d.      £200,000

3.      What is the rate of tax relief for an individual with £110,000 of salary making a net £8,000 contribution to a relief at source scheme?

a.      20%

b.      60%

c.       40%

d.      50%

4.      If a higher rate tax paying employer sacrifices their salary (all in IHT band), what is the extra saving they get compared to RAS?

a.      20%

b.      2%

c.       12%

d.      52%

5.      How much tax relief is gained by someone with £49,500 of earnings, £500 of savings interest who has encashed an offshore bond for a £50,000 gain over ten years if they pay £4,000 net to a Relief at Source pension?

a.      50%

b.      120%

c.       220%

d.      551%

To claim your CPD certificate, click here.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.