CPD system says £0 is the wrong answer. Anyone show me why £2,400 is right?
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.
I think it's because it is the word "partner", therefore it's a third party pension contribution so not eligible for tax relief.
That's my thinking. You can't pay gross to a personal pension for a start. The net contribution would be paid to partner's pension and he/she would get basic rate relief added. £0 is the right answer IMO.
Doesn't it just mean - for a £1,000 gross pm, then net contribution is £800 so £200 tax relief pm.
£200 x 12 = £2,400
@LucyG don't disagree with you but the language is all wrong:
Alan can't pay £1,000 gross pm into a personal pension.
"How much tax relief would he get?" - he'd get none. The partner will get £2,400.
Yep that reads like a CII R0 question.
Strong letter of opinion to the CPD provider is needed.
It's a CISI professional refresher!
That's a bad question. You're right, the answer is £0. But as he can't pay £1,000 gross into her pension I'll assume it's £1,000 going in and she'd get £250pm RAS.
It's wrong on every level. I'm beginning to doubt he's really called Alan.
Also, don't forget that each payment is a transfer of value for IHT purposes and if there aren't any exemptions available each payment is a PET!
Unless his partner is his wife/husband/civil partner
"I'm beginning to doubt he's really called Alan"
Tax relief is based on the pension holder's circumstances , isn't it, not the contributors?
Right, the question is FUBAR