Question 5a
You should assume that today’s date is 15 February 2012.
(a) Rosie Rohan, aged 48, is the managing director of Hornburg plc. During the tax year 2011–12 Rosie was paid gross director’s remuneration of £220,000. She has made the following gross personal pension contributions:
| Tax year | Pension contribution £ |
|---|---|
| 2007–08 | 33,000 |
| 2008–09 | 41,000 |
| 2009–10 | 26,000 |
| 2010–11 | Nil |
Rosie was a member of a pension scheme for the tax year 2010–11.
Required:
Advise Rosie Rohan of the total amount of pension scheme annual allowances that she has available for the tax year 2011–12, the method by which tax relief will be given for any personal pension contributions that she makes during that year, and the tax implications if she makes contributions in excess of the available annual allowances.
Note:
1. You are not expected to calculate Rosie Rohan’s income tax liability.
2. You are not expected to consider the situation where pension contributions do not attract tax relief. (6 marks)