RPSM06200080 - Member Pages: Annual Allowance: Who is liable to pay the annual allowance charge?

Who is liable to pay the annual allowance charge?

This guidance explains the annual allowance rules up to 5 April 2011. If you want to know how the annual allowance works after that date see the guidance at http://www.hmrc.gov.uk/pensionschemes/annual-allowance/index.htm.

The member is liable to pay the annual allowance charge. This will be payable using the self assessment tax return. If a self assessment return form has not been issued to the individual they will need to contact their local tax office; if the annual allowance charge is to apply.

The tax charge cannot be offset against any losses or tax allowances.