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Question 3aii

Your firm has been asked to provide advice to Shuttelle in connection with personal pension contributions and to three non-UK domiciled individuals in connection with the remittance basis of taxation for overseas income and gains.

(a) Personal pension contributions:
– Shuttelle has been the production director of Din Ltd since 1 February 2000.
– Shuttelle joined a registered personal pension scheme on 6 April 2010.

Shuttelle’s tax position for the tax year 2012/13:
– Shuttelle’s only source of income is her remuneration from Din Ltd.
– Shuttelle’s annual salary is £204,000.
– Shuttelle lived in a house owned by Din Ltd for a period of time during the tax year 2012/13.

The house provided by Din Ltd for Shuttelle’s use:
– Was purchased by Din Ltd on 1 January 2000 for £500,000 and has an annual value of £7,000.
– Shuttelle lived in the house from 1 February 2000 until 30 June 2012.
– The house had a market value of £870,000 on 6 April 2012.

Contributions to Shuttelle’s personal pension scheme:
– Shuttelle has made the following gross contributions:
6 April 2010 – £29,000
6 April 2011 – £48,000
6 April 2012 – £120,000.
– Din Ltd contributes £4,000 to the scheme in each tax year.

Required:
(ii) Calculate the amount of tax relief obtained by Shuttelle as a consequence of the gross personal pension contributions of £120,000 she made on 6 April 2012. (3 marks)