Pension input periods

By Tolley
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The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Pension input periods
  • Introduction
  • PIPs for 2015/16 and beyond
  • Aligning the PIP to the tax year ― transitional arrangements applied to 2015/16

Introduction

The annual allowance in relation to registered pension schemes is the maximum amount:

  • by which a member’s benefits can increase in a pension input period (PIP) (in respect of defined benefit schemes)
  • that can be contributed to pension arrangements in a PIP (for defined contribution or money purchase schemes)

If the annual allowance is exceeded there is a tax charge (the annual allowance charge) on the member.

More on Pension contributions: