Help please, if you can. I've hit a wall in understanding deductions permitted in arriving at "adjusted income" for annual allowance taper for pensions (which I believe HMRC explains as commencing with 'net income ... calculated under steps 1 and 2 of section 23 of the Income Tax Act 2007' and understand isn't the same as 'adjusted net income' for tax rates etc)
Permitted reliefs under s24 ITA 2007 include Chapter 3 of Part 8 (gifts of shares, securities and real property to charities etc). What is "etc" ... most advice commentary either ignores s24 or simply refers to "some reliefs." A few FAs loosely illustrate with 'Mr x donated £y to charity' and make a deduction of £y.
Say my client has gross income from all earned and investment sources of £165,000; her employer contributed £25,000 pension contributions; client donated £7,000 to UK charities under Gift Aid and I don't think she has much wriggle room at all from carried forward annual allowances.
Is adjusted income:
- 165k plus 25k minus 7k? or
- 165k plus 25k minus grossed up £8.75k? or
- 165k plus 25k? or
- none of these?