13 - Relief for pensions.

 0    28 informačný list    michallekawa
stiahnuť mp3 vytlačiť hrať Skontrolujte sa
 
otázka English Odpoveď English
In general, tax relief for pension contributions are available for individuals who are...
2cz
začať sa učiť
resident in the UK | and aged under 75.
The pension scheme is a registered scheme,
What kind of HMRC registered pension scheme is available for self-employed and for non-pensionable employment?
začať sa učiť
Personal Pension Plan (PPP).
What kind of pension scheme is available for pensionable employment?
začať sa učiť
Occupational Pension Plan (OPP).
Pension tax relief is available for contributions up to higher of:
2cz
začať sa učiť
£3,600 | and Relevant earnings.
RE = trading profits, employment income + FHA income.
Relevant earnings components:
3
začať sa učiť
Trading profits | employment income | FHA income.
Relief method of Occupational Pension Plan?
začať sa učiť
Exempt benefit for employment income.
Relief method of Personal Pension plan?
začať sa učiť
Basic rate: at source. | Higher and additional rates: extended basic i higher rate bands.
Pension schemes. Employer contributions operating:
3
začať sa učiť
Tax allowable against business profits. | Exempt benefit for individual. | Taken into account when calculation total contributions to be compared with the Annual allowance (£40,000).
The excess of the pension Annual allowance is taxed as the individual's ... of income.
začať sa učiť
top slice income (e.g. after dividends).
It is paid through the self-assessment system.
Order of utilisation of pension Annual allowance:
3cz
začať sa učiť
Current year Annual allowance is used first. | Then earlier 3 years unused amount | (FIFO).
The Annual allowance of £40,000 is reduced for individual with...
2
začať sa učiť
with a 'threshold income' exceeding £200,000 | and 'adjusted income' exceeding £240.000.
The Annual allowance of £40,000 reduction formula:
If the threshold income is > £200,000 and adjusted income > £240,000.
začať sa učiť
£40,000 − [(Adjusted income − £240,000) × 50%]
The Annual allowance for the tax year must be reduced by (Adjusted income − £240,000) × 50%.
The maximum reduction to the Annual allowance is £36,000, meaning the minimum Annual allowance is...
začať sa učiť
£4000.
g i v e n
Threshold income formula:
začať sa učiť
Net income* − gross PPCs
*from the income tax computation
Adjusted income formula:
for pension purposes
začať sa učiť
Net income* + Individual's OPP contributions + Employer's contributions into any scheme
NI + OPPC + EAC
*from the income tax computation
Lifetime allowance of £1,073,100 = Total pension value that can obtain tax relief. It is considered when...
začať sa učiť
when individual becomes entitled to take his pension or lump sum on retirement.
If the value of the pension fund exceeds the Lifetime allowance, an additional charge arises.
Pension fund grows tax-free. It means it is exempt from...
2
začať sa učiť
income tax | and CGT.
Commencement age of pension benefits:
začať sa učiť
Aged 55; Individual can continue to work and draw a pension.
The maximum tax-free pension lump sum formula:
4cz
On retirement, part of the funds can be withdrawn ONES as a tax-free lump sum.
začať sa učiť
25% | of lower of | value of fund | and Lifetime allowance
On retirement, part of the funds can be withdrawn ONES as a tax-free lump sum. The balance of the fund can be withdrawn at any time. Withdrawals are subject to income tax at normal rates (20%, 40% or 45%).
Taxation rates when value of pension fund is higher than Lifetime allowance:
2
začať sa učiť
25% if INCOME withdrawal. | 55% if taken as a lump sum.
Only for the lifetime allowance excess.
On the death of the individual, the pension scheme may provide:
2
začať sa učiť
pension income, | lump sums.
For dependants, e.g. spouse, civil partner, child under the age of 23 or other dependant. Further tax charges may arise.
Current year Pension Annual Allowance Restriction determination:
začať sa učiť
If threshold income does not exceed £200,000 it is not necessary to calculate adjusted income to determine if a restriction to the Annual Allowance is needed.
E.g. 208,141 − 120,000 = 88,141
Pension Annual Allowance charge formula:
začať sa učiť
(Employee gross PPCs + Employer gross contributions − Annual Allowance*) × marginal % (usually 40% or 45%)
Ee gross PPCs + Er PCs ×40%
CY + 3 last years (FIFO). | Annual allowance tax charge is calculated using the taxpayer’s marginal rate of tax.
Calculation of PA available:
Employment income: 190,000; Gross PPCs - 90,000.
začať sa učiť
Full PA as ANI = 100,000
Note: remember that taxpayer actually paid £72,000 PPCs.
Calculate revised pension Annual Allowance:
Employment income: 203,000; Unfurnished property income: 92,000.
začať sa učiť
12,500
40,000 − [(295,000 −240,000) × 50%] = 12,500
Note: It cannot be reduced to less than £4,000.
Calculate Annual Allowance Charge:
CY gross PPCs - 90,000 | CY revised annual allowance 12,500 | Previous 3 years annual allowance - 10,000.
začať sa učiť
67,500 × taxpayer's marginal rate of tax (usually 40% or 45%).
Purchase pension scheme is valued at 1,550,000. What is tax rates for withdrawal:
3
začať sa učiť
25% of the lower of life time allowance and pension fund* is tax-free, | remaining 75% will be treated as non-saving income. | The excess of life time allowance will be taxed at 55% for lump sum and 25% pension income (known as annuities).
*268,275
Calculate the maximum amount of contributions paid into pension scheme to without incurring an annual allowance charge in year 1 and year 2.
2
Registration: in the middle of year 1. | Year 1 income: £6,000 rental income (unfurnished). | Year 2 trading income: 80000.
začať sa učiť
year 1: £3,600 | year 2: £76,400
relevant earnings: employment income, trading income, FHA. | Unused allowance can by brought forward regardless of relevant entitlement in 3 previous years.

Ak chcete pridať komentár, musíte byť prihlásený.