RPSM15200100 - Member Pages: Special annual allowance: Overview: Pension inputs protected from SAA
This guidance only applies for the 2009-10 and 2010-11 tax years.
Pension inputs that are protected from the special annual allowance charge
Pension inputs that represent a continuation of existing regular pension saving that was in place before 22 April 2009 may not be liable to the special annual allowance charge. (If your income is £130,000 or more but less than £150,000, this applies to pension saving in place before 9 December 2009.) The conditions for whether or not a pension input is protected from the special annual allowance charge are quite complex and depend on the type of pension arrangement it has been made to.
A broad outline of the conditions that have to be met for a pension input to be protected from the special annual allowance charge can be found in the section of the guidance starting at RPSM15202000. Detailed guidance on the conditions for protected pension inputs can be found in the Technical Pages- see below for details.
Pension input amounts that are protected from the special annual allowance charge are still liable to the annual allowance charge.
Remember that inputs that are protected from the special annual allowance will reduce the amount of your available special annual allowance - see RPSM15200040.
You will lose your protected input amount if you enter into avoidance arrangements
If you enter into any avoidance arrangement of which one of the aims is to reduce or avoid liability to either the annual allowance charge, the lifetime allowance charge or the special annual allowance charge you will not have any pension inputs protected from the special annual allowance charge.
Where guidance on protected inputs is in the Technical Pages
For guidance on whether or not a pension input to a defined benefits arrangement is protected go to RPSM15103100.
For guidance on whether or not a pension input to an other money purchase arrangement under an occupational pension scheme, a public service pension scheme or a group personal pension is protected go to RPSM15103300.
For guidance on whether or not a pension input to a cash balance arrangement is protected, go to RPSM15103500.
For guidance on whether or not a pension input to an other money purchase arrangement that is not held under either an occupational, public service or group personal pension scheme is protected go to RPSM15103600.
In certain circumstances it is also possible that contributions paid to an arrangement that was not set up until after 21 April 2009(or after 8 December 2009 if your income is £130,000 or more but less than £150,000) may be protected - please see guidance at RPSM15104000.