The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The annual allowance in relation to registered pension schemes is the maximum amount:
See Example 1.
If the annual allowance is exceeded, there is a tax charge (the annual allowance charge) on the member. See Example 2.
The annual allowance covers all contributions whether made by the member or any other person, eg the member’s employer.
Following the Finance Act 2004 reforms, the annual allowance reached £255,000 in 2010/11. The annual allowance for 2011/12 to 2013/14 was £50,000. The annual allowance reduced to £40,000 from 2014/15, and has since remained at that level. Pension scheme administrators are required to provide a standard pension savings statement to a member if that member’s pension input amount exceeds the general untapered annual allowance of £40,000 (see below).
**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
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.