ExpertHard2 marksMultiple Choice
ACCA · Question 15 · Income tax and national insurance contributions
What is the maximum adjusted income limit for the 2023/24 tax year before an individual's annual pension allowance begins to be tapered?
What is the maximum adjusted income limit for the 2023/24 tax year before an individual's annual pension allowance begins to be tapered?
Answer options:
A.
£150,000
B.
£200,000
C.
£240,000
D.
£260,000
How to approach this question
Recall the statutory limits for pension tapering for the 23/24 tax year. Threshold income is £200k, Adjusted income is £260k.
Full Answer
D.£260,000✓ Correct
For the 2023/24 tax year, the annual pension allowance (£60,000) is tapered down if an individual's 'adjusted income' exceeds £260,000 (and their 'threshold income' exceeds £200,000).
Common mistakes
Confusing threshold income (£200,000) with adjusted income (£260,000).
Practice the full ACCA TX — Taxation Practice Exam 6
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