Annual Allowance (AA) is a ’must know’ for success in the AF3 exam. It will be worth 20 marks in every exam. Its an essential subject and was worth 28 marks in the April 2015 exam.
To put that into context, it is 30% of the marks you need to pass this exam.
It’s an important subject and it’s getting trickier now with the addition of the money purchase annual allowance (MPAA) rules and the transitional annual allowance rules for 2015/16. The best way to tackle the MPAA rules is to work your way through your study notes on the normal AA first; get familiar with the essentials on normal AA and then have a look at the MPAA study notes and videos (which are also part of module 5).
It’s the same with the new transitional rules for 2015/16.
Work your way through the ‘normal rules’ for AA (covering PIPs, contributions and PIA), THEN work through the new transitional rules.
I know that you will have already worked your way through module 1 on annual allowance.
This is not wasted time.
You should look through the newly updated study notes (updated with the rules applicable from 8 July) and the 1 hour video tutorial. Your previous work in Module 1 will prove invaluable in understanding the transitional rules for 2015/16.
The study notes and video tutorial are available to access immediately in your module 1 of the AF3 structured study plan – and immediately available within the exam update module for those with the study notes.
Within the lesson there are learning tutorial videos, downloads, question and answer video tutorials and your final quiz (I’ll be updating that shortly). All designed to help you apply your knowledge of AA accurately and successfully into a client case study using the AA table.
Remember, the pre-budget rules are still good strong grounding for the annual allowance transitional rules, contributions, PIP and PIA rules. They are still important and useful background in understanding the transitional rules and for the rules going into 2016/17 tax year – and, most importantly, your clients.