What am I missing with this?

richallumrichallum Administrator
edited March 8 in Technical stuff

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.

Comments

  • I think it's because it is the word "partner", therefore it's a third party pension contribution so not eligible for tax relief.

  • richallumrichallum Administrator

    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.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • LucyGLucyG Member

    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

  • richallumrichallum Administrator

    @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.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • JonaJona Member

    Yep that reads like a CII R0 question.

    Strong letter of opinion to the CPD provider is needed.

  • richallumrichallum Administrator

    It's a CISI professional refresher!

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • benjaminfabibenjaminfabi Moderator

    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.

    Benjamin Fabi FPFS
    Chartered Financial Planner

    http://twitter.com/benjaminfabi 
  • richallumrichallum Administrator

    It's wrong on every level. I'm beginning to doubt he's really called Alan.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • benjaminfabibenjaminfabi Moderator

    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!

    Benjamin Fabi FPFS
    Chartered Financial Planner

    http://twitter.com/benjaminfabi 
  • richallumrichallum Administrator

    Unless his partner is his wife/husband/civil partner B)

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • JonaJona Member

    "I'm beginning to doubt he's really called Alan" :D :D

  • Tax relief is based on the pension holder's circumstances , isn't it, not the contributors?

  • richallumrichallum Administrator

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • Right, the question is FUBAR

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