The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The annual allowance is the maximum amount which can be contributed (or deemed to be contributed) in a pension input period without the member incurring a tax charge.
The annual allowance for 2010/11 was £255,000. For 2011/12, the annual allowance was significantly reduced to £50,000 and further reduced to £40,000 with respect to the 2014/15 tax year onwards. From 6 April 2020, the allowance is tapered for those with adjusted income over £240,000. From 6 April 2016 to 5 April 2020, it was tapered for those with adjusted income over £150,000.
This is discussed in detail in the Annual allowance guidance note.
PenA 2008, ss 1–99
Those employees with lifetime allowance protection will need to opt out to ensure the conditions of the protection are not breached. See the Lifetime allowance guidance note.
For more information, see the Automatic enrolment ― overview guidance note.
This term only relates to occupational schemes which are defined benefit arrangements. A deferred member is an employee who has left the employment but has retained his benefit rights within the scheme.
Defined benefit arrangements
Under a defined benefit arrangement, the contract between the member and the pension scheme specifies the amount of benefits that are to be paid under the arrangement. This is often expressed as a formula. The formula may be based on the salary in the final year (or the last three years) of employment, with such
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
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