What is the maximum adjusted income limit for the 2023/24 tax year before an individual's annual pension allowance begins to be tapered?

Answer options:

£150,000

£200,000

£240,000

£260,000

How to approach this question

Recall the statutory limits for pension tapering for the 23/24 tax year. Threshold income is £200k, Adjusted income is £260k.

Full Answer

D.£260,000✓ Correct

For the 2023/24 tax year, the annual pension allowance (£60,000) is tapered down if an individual's 'adjusted income' exceeds £260,000 (and their 'threshold income' exceeds £200,000).

Common mistakes

Confusing threshold income (£200,000) with adjusted income (£260,000).

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Practice the full ACCA TX — Taxation Practice Exam 6

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