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GLOSSARY

Refund of excess contributions definition

What does Refund of excess contributions mean?

This is a payment to a member from a registered pension scheme.

It is paid where a member has made contributions to his pension arrangements in that year, in excess of his annual allowance. It is equal to those contributions paid in excess of the annual allowance less any tax relief granted on those contributions. The refund must be paid within six years of the last day of the same tax year.

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