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Personal Tax HELP!

janejane Well-KnownRegistered Posts: 165
: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

Comments

  • sloshedsloshed Well-Known Registered Posts: 100
    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.
  • janejane Well-Known Registered Posts: 165
    :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 :)
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