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CTFA · Question #2

Trevor is a member of a defined benefit company pension scheme. Which factor relating to his circumstances confirms that he will avoid incurring a special annual allowance charge in the current tax…

The correct answer is C. His total annual earnings have never exceeded £110,000. See the full explanation below for the reasoning.

Taxation

Question

Trevor is a member of a defined benefit company pension scheme. Which factor relating to his circumstances confirms that he will avoid incurring a special annual allowance charge in the current tax year?

Options

  • AHe is a member of an Employer Financed Retirement Benefit Scheme (EFRBS)
  • BHe is aged 61
  • CHis total annual earnings have never exceeded £110,000
  • DHis benefits include the maximum level of death benefit

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    9% (2)
  • C
    83% (19)
  • D
    4% (1)

Topics

#defined benefit pension#annual allowance charge#pension taxation#EFRBS

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