The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
As discussed in the Annual allowance guidance note, 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 (for defined benefit schemes), plus
that can be contributed to pension arrangements in a pension input period (for defined contribution or money purchase schemes)
The total of these figures is the pension input amount.
If the pension input amount exceeds the annual allowance (£40,000 from the 2014/15 tax year onwards), there is a tax charge on the excess (known as 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 each year.
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 decide to take benefit in the form of flexi-access drawdown.
The money purchase annual allowance (MPAA) is designed to ensure that individuals do not exploit the new system to gain unintended tax advantages.
The MPAA rules were introduced to ensure that individuals do not use pensions flexibility (which is intended to provide people with greater access to their retirement savings) to double up
**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
The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel
Calculation of the effective tax rateAn international group’s effective rate of tax is usually calculated as the amount of tax it pays divided by its consolidated profits. The effective tax rate depends largely on:•the rate of tax paid by each company in the group•the companies in which profits are
The reform of corporate losses within Finance (No 2) Act 2017 included a mixture of relaxations to the use of losses within the previous regime which applied before 1 April 2017 and also a major restriction (50% for most companies) on the amount of profits after 1 April 2017 that can be covered by
Normal due dateIndividuals are required to pay any outstanding income tax, Class 2 and Class 4 national insurance and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK resident individuals who
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.