APPENDIX 1
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here to see
appendix
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| Your ref: |
| To: | District | My ref: |
| Taxpayer: |
| NINO: |
| Pension provider: |
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FICO (Audit & Compliance)(PP) is responsible for
monitoring/monitoring/compliance checks on contributions to
Personal Pension Schemes to ensure that excess tax relief is not
obtained by the member. The above named taxpayer has made an excess
contribution for year 19 / 19 gross before basic rate tax relief.
The basic rate tax element on the excess gross contribution of
£ has been recovered by FICO (Audit & Compliance)(PP) and
the Personal Pension Scheme Administrator has repaid the excess net
amount to the member. Would you please take the necessary action to
recover any
higher rate relief given in assessments/coding for the year.
Click
here to see
appendix
The following examples show how the unused relief position will
alter depending upon whether the individual makes payments to
Payments to retirement annuity contract only.
Mr A has NRE of £20,000 for 1995-96. He was born on 18 June
1950.
He has unused relief of £2,000 at 5 April 1995 and has
paid £5,500 to his retirement annuity in 1995-96.
| Calculation of Relief |
|
|
| £ |
| Payment made | 5,500 |
| Percentage limit of NRE = 20,000 x 17.5% | 3,500 |
| Amount to utilise unused relief b/f | 2,000 |
| Unused relief position |
|
|
| £ |
| Total unused relief b/f at 6 April 1995 | 2,000 |
| Unused relief utilised in 1995-96 | 2,000 |
| Balance available for c/f | NIL |
Example 2
Payment to personal pension contract only.
The facts are the same as in Example 1 except that the payment
of £5,500 is made to a personal pension contract and not a
retirement annuity contract.
| Calculation of Relief |
|
|
| £ |
| Payment made | 5,500 |
| Percentage limit of NRE = 20,000 x 20% | 4,000 |
| Amount to utilise unused relief b/f | 1,500 |
| Unused relief position |
|
|
| £ |
| Total unused relief b/f at 6 April 1995 | 2,000 |
| Unused relief utilised in 1995-96 | 1,500 |
| Balance available for c/f | 500 |
Example 3
The facts are the same as in Example 1 except Mr A has made two
payments in 1995-96.
In order to explain the effect on usused relief you must make
separate calculations for both RAR and PPR.
|
| £ |
| Step 1- Calculate RAR allowable<£
RA percentage limit (NRE 20,000 x 17.5%) | 3,500 |
| plus |
|
| Unused relief b/f at 6 April 1995 | 2,000 |
| Maximum possible RA payment relievable | 5,500 |
But Mr A has only paid a sum of £4,000 to his retirement
annuity contract so this is the only amount you can give relief
for.
In calculating the relievable PPR you must also consider the
amounts paid and relieved under retirement annuity contracts.
|
| £ |
| PP percentage limit (NRE 20,000 x 20%) | 4,000 |
| plus |
|
| Unused b/f at 6 April 1995 | 2,000 |
|
| 6,000 |
| less |
|
| Amounts paid and relieved under RA contracts | 4,000 |
| Maximum possible PP payment relievable | 2,000 |
But Mr A has only paid a sum of 1,500 to his personal pension
contract so this is the only amount you can give relief for. The
total amount relievable in 1995-96 for both RAR and PPR is
therefore 5,500. This is 4,000 RAR from Step 1 plus 1,500 PP from
Step 2.
As with the calculations of actual relievable amounts for RAR
and PPR you must keep separate calculations of the unused relief.
Form PP/RA44 will help you in keeping the amounts for RA and PP
separate. The unused relief position is as follows:
|
| £ |
| Maximum under RA percentage limits | 3,500 |
| Unused reliefs b/f at 6 April 1995 | 2,000 |
|
| 5,500 |
| Total amounts relievable under both RA and PP contracts | 5,500 |
| Unused relief available for c/f to 1996-97 or later years | NIL |
| PP- unused relief |
|
|
| £ |
| Maximum under PP percentage limits | 4,000 |
| Unsed reliefs b/f at 4 April 1995 | 2,000 |
|
| 6,000 |
| Total amounts relievable under both PP and RA Contracts | 5,500 |
| Unused relief available for c/f to 1996-97 or later years | 500 |
| Note:This PP unused relief of 500 can only be used by a PP payment in any of the next 6 years. It cannot be taken up by a payment under an RA contract. |
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