Question

Eassa is employed at an annual salary of £75,000 and has made following contributions to his personal pension plan in the previous tax years:

2015/16                       £18,000

2016/17                       £21,000

2017/18                       £9,500           

Required:

Compute the maximum gross tax relievable pension contribution that William can make in 2018/19 taking into account brought forward annual allowance

Answer 1

**The most extreme gross assessment relievable benefits commitment that Eassa can make in 2018/19 is 40,000or 100 % available procuring whichever is less. For this situation Eassa available pay (75,000) is more prominent than 40000, henceforth greatest gross expense relievable annuity commitment is confined to 40,000.

**Eassa has convey forward yearly remittance in her record . Convey forward permits to utilize any yearly remittance that may have not been utilized during the three past years,however the sum is restricted to 40,000.

**Hence the carry forward recompense of 18,000 , 21,000 and 9,500 surpass 40,000 ,the most extreme gross duty relievable benefits commitment that Eassa can make in 2018/19 is 40,000 out of the convey forward yearly remittance in his record.