ExpertMedium2 marksMultiple Choice
ACCA · Question 13 · Income tax and NIC liabilities
Section A
For the tax year 2023/24, what is the minimum tapered annual allowance for pension contributions for a high earner whose adjusted income exceeds £260,000?
Section A
For the tax year 2023/24, what is the minimum tapered annual allowance for pension contributions for a high earner whose adjusted income exceeds £260,000?
Answer options:
A.
£4,000
B.
£10,000
C.
£0
D.
£60,000
How to approach this question
Recall the pension annual allowance rules for 2023/24. The standard allowance is £60,000, and the minimum tapered allowance is £10,000.
Full Answer
B.£10,000✓ Correct
For the tax year 2023/24, the standard pension annual allowance is £60,000. For individuals with an 'adjusted income' over £260,000, this allowance is reduced by £1 for every £2 of excess income. However, the maximum reduction is £50,000, leaving a minimum tapered annual allowance of £10,000.
Common mistakes
Using the older £4,000 minimum or the £40,000 standard allowance from previous tax years.
Practice the full ACCA TX — Taxation Practice Exam 2
32 questions · hints · full answers · grading
More questions from this exam
Q01Section A
Marcus, a self-employed marine biologist, filed his self-assessment paper tax return f...EasyQ02Section A
AgriCorp Ltd granted a 21-year lease on a piece of agricultural land to a tenant farme...MediumQ03Section A
Quantum Robotics Ltd, a tech startup, provided its marketing director with a new fully...MediumQ04Section A
Elena sold an antique weaving loom (a tangible movable property) for £6,500. She had o...MediumQ05Section A
Which of the following conditions is NOT required for an individual to qualify for Bus...Easy