Brand Bitesize: Tapered Annual Allowance
Are you a visual learner who is studying toward the CII’s AF1, AF5, AF7, J05, R04 or R06 exams? This month our ‘bitesize’ video is all about the tapering of the annual allowance for high earners. This is great for quick revision!
THIS VIDEO IS RELEVANT TO EXAMINABLE TAX YEAR 2021/22.
Tapered Annual Allowance
The annual allowance is tapered for high earners to control the cost of tax relief on pension contributions, but it only applies to individuals with threshold and adjusted incomes above specified limits. For income above the limits, there is a £1 reduction in the allowance per £2 of income over the threshold, reducing the annual allowance up to as much as £36,000 per year. These income limits were changed in 2020. If this topic is new to you, you’ll need to understand what is meant by adjusted and threshold income before you watch this video.Check out this short, informative video - it's Brand Bitesize, and this one's all about Tapered Annual Allowance - useful for #CII AF1, AF5, AF7, J05, #R04 or R06 exam revision. Click To Tweet
Grab the resources you need!
If you’re studying for your CII R04 exam, and you’re aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R04 calculation workbook taster now!