CISI Level 6 Past Papers
I've been working my way through the CISI Advanced Financial Planning past papers in preparation for the upcoming exam and something has got me scratching my head. It's probably quite simple but I just can't work it out!
Here is the exam paper: https://www.cisi.org/Public/Qualifications/AFP Sept 21 exam paper v2.pdf
Here is the marking scheme:
https://www.cisi.org/Public/Qualifications/AFP Sept 21 Chief Examiners Report.pdf
For question 14a, they've extended John's basic rate band by £6,250, which is his grossed up SIPP contribution. Why have they done this? I thought that your basic rate band got extended to provide higher rate tax relief, but only to the extent that you have actually paid higher rate tax. They've deducted his occupational pension contribution from his income, so he's already got full tax relief on that contribution, and the income he actually pays tax on is only £50,500. Can anyone work this out? Alternatively if anyone knows any good study groups for this exam please let me know!