Pensions tax relief

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. What is the annual allowance for 2011-12?

  2. A person has made pension savings of GBP54,000 for 2009-10, GBP13,000 for 2010-11, but was not a member of a pension scheme for 2008-09. The pension input period ends on 5 April. What is the maximum pension saving that can be made for 2011-12 without incurring an annual allowance tax charge?

  3. In what order are annual allowances used?

  4. A person has two pension arrangements. The first scheme has a pension input period ending on 31 May, and the second has an input period ending on 31 January. Which input periods are relevant for 2011-12?

  5. A self-employed person makes regular contributions into a personal pension scheme on the 15th of each month. The scheme's pension input period ends on 31 December. Gross contributions of GBP1,200 per month were made during the year ended 31 December 2011, and contributions of GBP1,300 per month will be made during the year ended 31 December 2012. On what amount of pension savings will tax relief be given for 2011-12?

  6. An employee is a member of a final salary scheme that will provide him with a pension of 1/40th of salary for each year of service. The pension input period ends on 31 January. On 31 January 2012 the employee's salary was GBP84,000 and he had 14 years of service. What is the closing value of the pension for the input period ended 31 January 2012?

  7. From 2011-12 onwards an annual allowance tax charge will be at what rate of tax?

  8. A person will make pension savings of GBP134,000 for 2011-12. For each of the previous six years the pension savings have been GBP35,000 per year. The pension input period ends on 5 April. What is the amount of surplus subject to the annual allowance tax charge in 2011-12?

  9. Which one of the following statements is true?

  10. If a person has a pension input period starting on 1 July 2010 and ending on 30 June 2011, what basis will be used to determine if an annual allowance tax charge arises?