Brand Bitesize: Extending the Basic Rate Band with Pension Contributions
In this Brand Bitesize video, we take a look at extending the basic rate band with pension contributions – relevant to the CII R03 exam, but also a worthy reminder for exams AF5 and R06.
This video is correct as at 10 March 2026.
Extending the Basic Rate Band with Pension Contributions
Understanding how pension contributions extend the basic rate band is a key concept for candidates studying for the CII’s R03 Personal Taxation exam. It also regularly appears in R06 case study analysis and AF5 financial planning scenarios, so getting comfortable with this concept can make a real difference to your exam performance.
In this video, we walk through a worked example showing how a pension contribution increases the basic rate tax band – meaning more income is taxed at 20% instead of 40%. We cover:
✔ How pension contributions extend the basic rate band
✔ A step-by-step Income Tax calculation
✔ How to apply the rule in CII R03 exam questions
This video is useful for candidates studying:
- R03 Personal Taxation
- R06 Financial Planning Practice
- AF5 Financial Planning Process
Grab the resources you need!
Calculation questions are a key part of the R03 exam. Download our free taster to see how Brand Financial Training helps you work through them.
Alternatively, you can try the taster for AF5 or R06 if you’re studying for either of those exams.
