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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

Mia has no earnings in 2025/26 and wishes to obtain tax relief on a personal pension contribution. What is the maximum contribution that can qualify for tax relief without any earnings, according to the ATX-UK tax tables?

The maximum contribution that qualifies for tax relief without any earnings is £3,600. Relief beyond that requires relevant earnings, up to the annual allowance. The £10,000 figure is the minimum allowance under tapering, and £60,000 is the standard annual allowance.

  1. A£3,600Correct
  2. B£10,000
  3. C£12,570
  4. D£60,000

Explanation

The tables state that the maximum contribution which can qualify for tax relief without any earnings is £3,600. £10,000 is the minimum tapered annual allowance. £60,000 is the standard annual allowance, which requires earnings.

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