The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The maximum amount that an individual can build up in tax-relieved pension savings is limited in two ways:
The annual allowance in relation to pension arrangements is the maximum amount:
The total of these figures is the pension input amount (see below).
If the pension input amount exceeds the annual allowance, there is a tax charge on the excess (the ‘annual allowance charge’) on the member.
See Example 1.
The annual allowance covers all contributions whether made by the member or any other person, for example, the member’s employer.
For the purposes of the annual allowance, the pension input amount is measured over the pension input period (see below). From 2016/17 onwards, the pension input period is aligned with the tax year. For earlier years (including the transitional year of 2015/16), care needs to be taken to check the pension input period rules.
The annual allowance is £40,000 and has
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login