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ACCA Strategic Professional · Advanced Taxation (UK) · Income tax: property and investment income

Oliver is a UK resident with no earnings in 2025/26 and no relevant UK earnings. He wants to make a personal contribution to a registered pension scheme. What is the maximum gross contribution that can qualify for tax relief, according to the pension limits in the ATX-UK tax rates and allowances?

The maximum contribution qualifying for tax relief with no earnings is £3,600 gross. The £60,000 annual allowance and £10,000 minimum tapered allowance are different limits and do not allow a larger relievable contribution for someone with no earnings.

  1. A£3,600Correct
  2. B£10,000
  3. C£40,000
  4. D£60,000

Explanation

The tax rates and allowances state that the maximum contribution which can qualify for tax relief without any earnings is £3,600. The £60,000 figure is the annual allowance, which also needs relevant earnings to be fully used. £10,000 is the minimum tapered allowance, not an earnings-free contribution limit.

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