RPSM15200040 - Member Pages: Special annual allowance: Overview: How much is my special annual allowance?
This guidance only applies for the 2009-10 and 2010-11 tax years.
How much is my special annual allowance?
There a number of factors that affect what your special annual allowance would be. These factors include
- do you have any amounts that are protected from the special annual allowance charge - see RPSM15202000?
- have you been making infrequent contributions to an other money purchase arrangement - see RPSM15200080 - and if so how much?
- for 2009/10 only what contributions, if any, were paid in respect of you up to 22 April 2009 (or up to 9 December 2009 if your relevant income is £130,000 or more but less than £150,000).
Your annual allowance will be based on one of the following amounts
- £20,000 - see RPSM15200050
- an amount of more than £20,000 but less than £30,000 - see RPSM15200060
- £30,000 - see RPSM15200070.
This is the amount on which your special annual allowance is based; it is not the amount of your available special annual allowance. The amount of any pension inputs protected from the special annual allowance charge is deducted from your special annual allowance.
In 2009/10 the amount of your special annual allowance is also reduced by the amount of any contribution paid in respect of you in the period beginning 6 April 2009 and ending 22 April 2009 (or ending 9 December 2009 if your relevant income is £130,000 or more but less than £150,000) that is not a protected input.
Example 1
For the tax year 2009/10 you have income of more than £150,000, a special annual allowance based on £30,000 and a £20,000 pension input protected from the special annual allowance charge. Your special annual allowance is reduced by the amount of your protected input. You also contributed £1,000 on 15 April 2009 which is not protected from the special annual allowance charge. This amount also reduces your special annual allowance. Your available special annual allowance is only £9,000. If your non protected pension inputs made after 21 April 2009 are more than £9,000 any non protected pension input of more than £9,000 will be liable to the special annual allowance charge
Example 2
You have a special annual allowance based on £20,000. However you also have a pension input amount of £50,000 that is protected from the special annual allowance charge. If you make this protected pension amount your special annual allowance will be reduced by this amount. Your available special annual allowance will be nil. Any non protected pension inputs will be liable to the special annual allowance charge.
RPSM15102080 to RPSM15102100 give further examples of how to calculate your special annual allowance.
| Glossary (RPSM20000000) |
