Section A: Objective Test

For the tax year 2023/24, Chloe has a threshold income of £210,000 and an adjusted income of £280,000.

What is Chloe's available pension annual allowance for 2023/24, assuming she has no unused allowances brought forward?

For 2023/24, the standard pension annual allowance is £60,000. Tapering applies if Threshold Income > £200,000 AND Adjusted Income > £260,000. Chloe meets both conditions. Excess Adjusted Income = £280,000 - £260,000 = £20,000. The allowance is reduced by £1 for every £2 of excess: £20,000 / 2 = £10,000 reduction. Tapered Annual Allowance = £60,000 - £10,000 = £50,000.