RPSM06100050 - Technical Pages: Annual allowance: Up to 5 April 2011: Overview: The pension input period

The pension input period

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 RPSM06105000.

[s238(2)(a)]

The pension input period is a period over which the pension input amount for an arrangement is measured.

The pension input period need not be the same as a tax year and the period can be changed (see RPSM06100070). It is the pension input amount for the pension input period ending within the tax year that will become part of the total pension input amount and tested against the annual allowance. This means that pension input amounts arising from later periods which begin within the tax year but do not end within that tax year will not be tested for that tax year, but for the next.

Example

John is a member of three registered pension schemes each with different pension input periods. These are:


Scheme 1

1 January to 1 January

Scheme 2

1 May to 1 May

Scheme 3

1 September to 1 September


So for the tax year ending on 5 April 2008 the pension input periods which would count are:


Scheme 1

1 January 2007 to 1 January 2008

Scheme 2

1 May 2006 to 1 May 2007

Scheme 3

1 September 2006 to 1 September 2007


  Glossary (RPSM20000000)