Pension news

Affected by the Annual Allowance tax charge?

06 October 2017

Do you know if your pension savings exceeded the Annual Allowance in 2016/17? If you are likely to be affected, you will soon receive a personalised pension savings statement in the post and a supporting guide to help you work out if you have an Annual Allowance charge and the next steps to consider.

What is the Annual Allowance?
The Annual Allowance is the maximum Pension Input Amount that can be paid each year to all your pension arrangements without incurring a tax charge. If your Pension Input Amount exceeds the Annual Allowance you may have to pay a tax charge. This is known as an Annual Allowance charge.

How do I work out if I have an Annual Allowance charge?
The pensions team will write to those who may be affected and you will soon receive a personalised pension savings statement in the post to help you work out if you have an Annual Allowance charge. The statement will show your Pension Input Amount for the year. If you have savings in more than one pension arrangement, you will need to add all your Pension Input Amounts together to check if you have exceeded the Annual Allowance.

To find out more about this you can download A guide to your pension savings statement which has been created to help you understand more about the pension savings statement and the Annual Allowance charge.

Getting help
Tax is your individual responsibility and we cannot complete or assist you with any tax liability calculations. You can find more information about tax or self-assessment on the HMRC website: www.gov.uk/tax-help

If you are concerned about how tax may affect your pension benefits, visit the Money Advice Service at www.moneyadviceservice.org.uk/en to find an independent financial adviser in your area. The pensions team is unable to provide you with financial advice, however, if you have any queries please use the Contact us page to get in touch.

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