On-Demand Events
Annual Allowance Webinar
19 Sep 24 5 min read
On last month’s Techy Thursday event we looked at all things tax relief, including how it operates for individuals, companies and third parties.
The other side of the tax relief coin is the Annual Allowance – quite simply, you can’t consider one without thinking about the other.
In this session, M&G Wealth’s award-winning Technical Team will take a close look at the fundamentals of the three Annual Allowances – standard, money purchase and tapered – how they work, how you calculate them and how you deal with any tax charges.
Les Cameron (Head of Technical, M&G Wealth)
Mark Devlin (Senior Technical Manager, M&G Wealth)
90 minutes video (approximately).
Learning outcomes
By the end of this session, you will be able to:
- Describe the operation of the annual allowances
- Calculate someone's available annual allowances
- Explain the taxation of annual allowance excesses
Claiming your CPD
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. For the tapered annual allowance to apply in the current tax year, what values are needed?
a. Adjusted income above £150,000 and threshold income above £110,000.
b. Adjusted income above £240,000 and threshold income above £200,000.
c. Adjusted income above £260,000 and threshold income above £200,000.
d. Adjusted income above £200,000 and threshold income above £150,000.
2. If a member exceeds their available annual allowance and any available carry forward, the excess is taxed;
a. As if this was earned income at their marginal rate of taxation.
b. A one off tax charge of 25%.
c. As if this was dividend income at their marginal rate of taxation.
d. A one off tax charge of 40%.
3. If a member has a tax charge and the scheme will be paying all of this, do they have to self-assess?
a. Yes
b. No
1. For the tapered annual allowance to apply in the current tax year, what values are needed?
a. Adjusted income above £150,000 and threshold income above £110,000.
b. Adjusted income above £240,000 and threshold income above £200,000
c. Adjusted income above £260,000 and threshold income above £200,000.
d. Adjusted income above £200,000 and threshold income above £150,000.
2. If a member exceeds their available annual allowance and any available carry forward, the excess is taxed;
a. As if this was earned income at their marginal rate of taxation.
b. A one off tax charge of 25%.
c. As if this was dividend income at their marginal rate of taxation.
d. A one off tax charge of 40%.
3. If a member has a tax charge and the scheme will be paying all of this, do they have to self-assess?
a. Yes
b. No
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
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