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ACCA Strategic Professional · Advanced Taxation (UK) · Income tax: the use of exemptions and reliefs in deferring and minimising income tax liabilities

Mei, a non-earner with no relevant UK earnings, wishes to make a personal pension contribution to obtain tax relief. Under the ATX-UK tables (Finance Act 2025), what is the maximum contribution that can qualify for tax relief without any earnings?

The maximum contribution that can qualify for tax relief without any earnings is £3,600. The £10,000 minimum allowance and £60,000 annual allowance are different limits that do not give a non-earner a higher contribution relief.

  1. A£3,600Correct
  2. B£10,000
  3. C£2,880
  4. D£60,000

Explanation

The tables state the maximum contribution that can qualify for tax relief without any earnings is £3,600. £10,000 is the minimum tapered annual allowance and £60,000 is the standard annual allowance, neither of which applies to a person without earnings.

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