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The Future of Pensions Advice: Part 3 – ‘Tax Relief, Annual Allowance and a pair of pension tax tools’

Session: 13 May

Pension planning is nothing without knowing the tax implications of the advice, which can involve a lot of complex calculations.

In Part 3 of this seminar series, Neil MacLeod from our Technical team outlined the theory of two of our most-used pension tools and demonstrate how to use them to produce the right outcomes for your clients.

Learning Outcomes – to demonstrate an understanding of: 

  • How tax relief is given for pension contributions
  • The annual allowance rules
  • How our tools and calculators can help your clients understand the benefits of pension tax planning

Presenter – Neil MacLeod – Technical Manager

Featured Video

87 minutes

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. Gillian’s income from the tax year is made up of £95,000 salary, £1,000 of bank interest and £10,000 dividends. She makes a net relief at source pension contribution of £5,000 to her personal pension.

a. Gillian’s “adjusted net income” is £99,750 and she has a personal allowance of £12,570

b. Gillian’s “adjusted net income” is £101,000 and she has a personal allowance of £12,000

c. Gillian’s “adjusted net income” is £104,000 and she has a personal allowance of £10,570

d. Gillian’s “adjusted net income” is £106,000 and she has a personal allowance of £9,570

 

2. Andrew earns a salary of £30,000 p.a. He currently contributes 5% of his salary into his employer’s pension scheme under a net pay arrangement. His employer matches Andrew’s contributions. How much more can Andrew contribute personally and receive tax relief without suffering an AA charge?

a. £27,000

b. £28,500

c. £30,000

d. £37,000

 

3. Simon is a director of his own ltd company. He takes a salary of £10,000 each year from the business along with dividends up to the higher rate threshold.

What is the maximum personal tax relievable pension contribution that Simon can make?  

a. £3,600

b. £10,000

c. £40,000

d. £160,000

 

To claim your CPD certificate, click here.

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