The following Employment Tax guidance note Produced by Tolley in association with John Hayward provides comprehensive and up to date tax information covering:
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.
The purpose of the annual allowance is to set a limit on the extent to which people are able to accumulate additional tax privileged pension funds between one year and the next. So long as these pension inputs do not exceed the annual allowance then tax relief will be granted on the contributions made. Pension inputs in excess of the annual allowance are subject to an annual allowance charge.
The annual allowance is £40,000 from the 2014/15 tax year onwards.
In order to reduce the risk of funds being recycled as a consequence of the introduction of the more flexible benefits regime with effect from 6 April 2015, a new form of annual allowance was introduced for those who have a ‘money purchase arrangement’ (a term defined by Finance Act 2004, s 152(2)) and decide
**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
OutlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease. In the absence of specific legislation to the contrary, such premiums would all
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees
Special rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool consists of expenditure incurred
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is