Pensions tax relief (UK Finance Act 2015)

What is the maximum possible annual allowance for 2015-16?

£10,000

£80,000

£50,000

£40,000

A person has made pension savings of £54,000 for 2013-14, £13,000 for 2014-15, but was not a member of a pension scheme for 2012-13. The pension input period ends on 5 April. What is the maximum pension saving that can be made for 2015-16 (assuming the available annual allowance for 2015-16 is £40,000) without incurring an annual allowance tax charge?

£27,000

£40,000

£67,000

£117,000

In which of the following situations will the money purchase annual allowance of £10,000 not be applied?

Where both a tax-free lump sum and income have been taken from a crystallised pension fund

Where a withdrawal (less than 25% of the value of the fund) has been taken from an uncrystallised pension fund

Where a withdrawal (more than 25% of the value of the fund) has been taken from an uncrystallised pension fund

Where a tax-free lump sum, but no income, has been taken from a crystallised pension fund

A previous pension input period finished on 31 May 2014. How many pension input periods will they have for 2015-16?

3

1

2

0

For 2016-17, a person expects to have adjusted income of £170,000. Assuming that the full annual allowance for 2016-17 is £40,000, what annual allowance will the person actually be given for that year?

£30,000

£20,000

£40,000

£10,000

A person will make pension savings of £114,000 for 2015-16. For each of the previous six years, pension savings have been £35,000 per year. The pension input period ends on 5 April. On the basis that the available annual allowance for 2015-16 is £40,000, what is the amount of surplus subject to an annual allowance tax charge in this year?

Nil

£79,000

£39,000

£74,000

An annual allowance tax charge is at what rate of tax?

The average rate of tax

A flat rate of 45%

The marginal rate of tax

A flat rate of 20%

An employee is a member of a final salary scheme. The pension input period ends on 5 April. On 6 April 2015, the notional capital value of the pension is calculated at £435,700, and at 5 April 2016 it is calculated at £492,200. The relevant percentage increase for 2015-16 is 2.5%. What is the total pension savings for annual allowance purposes for 2015-16?

£68,805

£56,500

£10,892

£45,607

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 5 April. On 6 April 2016 the salary was £84,000 and he had 14 years of service. What is the closing value of the pension for the input period ended 5 April 2016?

£1,344,000

£313,600

£504,000

£470,400

In what order are annual allowances used?

The annual allowance for the current tax year is initially used, and then any unused allowances from earlier years with those from the latest year used first

The annual allowance for the current tax year is initially used, and then any unused allowances from earlier years with those from the earliest year used first

Unused allowances from earlier years are initially used, with those from the earliest year used first. The annual allowance for the current tax year is used last

Unused allowances from earlier years are initially used, with those from the latest year used first. The annual allowance for the current tax year is used last

Pensions tax relief (UK Finance Act 2015)

What is the maximum possible annual allowance for 2015-16?

In which of the following situations will the money purchase annual allowance of £10,000 not be applied?

A previous pension input period finished on 31 May 2014. How many pension input periods will they have for 2015-16?

For 2016-17, a person expects to have adjusted income of £170,000. Assuming that the full annual allowance for 2016-17 is £40,000, what annual allowance will the person actually be given for that year?

An annual allowance tax charge is at what rate of tax?

In what order are annual allowances used?

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