pension Quiz

Ebbin, who is self-employed, opened a personal pension scheme for the first time in the tax year 2022-23 and made pension contributions of £56,000 in that year. He has never been a member of any other pension scheme. He made further contributions of £17,000 for the tax year 2023-24. Ebbin’s trading profit for the tax year 2024-25 was £80,000.

What is the maximum amount of pension contributions that Ebbin can make for the tax year 2024-25 without incurring an annual allowance tax charge?

• £43,000

• 2. £60,000

• £103,000

• £87,000

Jeeva has made pension contributions of £33,000 a year for the last five years. He plans to make pension contributions of £113,000 for the tax year 2024-25. His annual income is £140,000.

What is the amount of the excess contribution subject to the annual allowance tax charge in the tax year 2024-25?

• 1. £93,000

• £12,000

• £25,000

• £0

Akshara has relevant earnings of £30,000 and makes a personal net pension contribution of £24,000. What is the gross contribution?

Durga is planning for her retirement and wants to know the standard annual allowance for pension contributions in 2024/25. What is it?

• £40,000

• £55,000

• £60,000

• £50,000

Rohith has been saving for his annual allowance, but he unexpectedly exceeds it this year. How is the excess taxed?

• No tax applies

• It is taxed at 20% flat

• It is taxed as additional employment income

• It is taxed at the individual’s marginal rate

Atulya is planning for her retirement and wants to know the maximum gross personal pension contribution eligible for tax relief if she has no earnings in a tax year.

• £60,000

• £0

• £3,600

• £2,880

Sarang is planning for his retirement and wants to understand which type of pension contribution is extended as a basic rate band in the income tax computation.

• Employer contributions

• Personal gross contributions

• Net contributions by individual

• Salary sacrifice contributions

Which one of the following statements about pension tax relief is true?

• Employer contributions are always taxable on the employee

• Pension contributions reduce adjusted net income for personal allowance

• Personal contributions are deductible from employment income

• Contributions reduce taxable income directly

Jewell has unused annual allowances of £10,000 (2021/22), £15,000 (2022/23), and £20,000 (2023/24). In 2024/25, he contributes £80,000 gross. What is his excess over allowable contributions?

• £0

• £5,000

• £10,000

• £15,000

Suhail is reviewing his retirement contributions and comes across the annual allowance charge. Which of the following statements regarding the charge is correct?

• It is charged on the employer, not the individual

• It applies only to personal contributions

• It applies when total contributions exceed the annual limit

• It is charged at a flat 20% rate