Tapered annual allowance
With the introduction of the tapered annual allowance from 6 April 2016 as well as the transitional rules, the existing requirement for scheme administrators to send an annual allowance pension statement to anyone whose pension savings exceed the annual allowance in that scheme may no longer be appropriate.
HMRC are considering how the current rules could be adapted to help individuals who are affected by the tapered annual allowance, given that it is not expected that scheme administrators will know what any individuals income is for any tax year.
Scheme administrators are also reminded that from 6 April 2016, as part of the changes for the tapered annual allowance, all pension input periods should be aligned with the tax year, regardless of whether or not the members are likely to be affected by the taper.
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