Personal Tax HELP!

jane

:crying:
Hi all, please could someone help me.
I am doing a practice assessement 4 in the BPP question bank and need help on this questions!

Task 1.8
Max earns £2500.00 in 2010/11 in a part time job. He also has property income of £5000.00 in 2010/ from letting out a field.

The maxiumum pension contribution on which Max can get tax relief in 2010/11 is:

a) £2500
b) £3600
c) £7500
d) £5000

I just don't know!!!

Jane

sloshed

jane wrote: »

:crying:
Hi all, please could someone help me.
I am doing a practice assessement 4 in the BPP question bank and need help on this questions!

Task 1.8
Max earns £2500.00 in 2010/11 in a part time job. He also has property income of £5000.00 in 2010/ from letting out a field.

The maxiumum pension contribution on which Max can get tax relief in 2010/11 is:

a) £2500
b) £3600
c) £7500
d) £5000

I just don't know!!!

Jane

Answer is £3600. Basically pension contributions are normally restricted to the level of earned income. The part time job is earned income but property income is investment income and does not count. However there is minimum level of £3600 for everybody.

jane

:thumbup1:
Thanks Sloshed. I am studying from the Osborne book, and I can't seem to find that piece of info in there! Thank you for your answer and I will be sure to remember that now.

J