RPSM13102360 - Technical Pages: International: Application of charges to non-UK schemes: Annual allowance: Example pension input amount – defined benefits
Example of a pension input amount for a defined benefits arrangement
Jenny is a currently-relieved member of a currently-relieved
non-UK pension scheme whose
defined benefits rights increase by £100,000
in the 2006/07 tax year (calculated using the 10:1 factor). Her
total earnings from the employment to which those benefits rights
related in that
pension input period was £300,000. But only
£225,000 of those earnings were UK taxable earnings under
section 10(2) ITEPA 2003.
As her UK taxable earnings represent 75 % of her total
earnings that same proportion is applied to the increased benefits
rights. This means that her
pension input amount for the tax year in respect
of this scheme is £75,000.
However, if in 2006/07 she also made £100,000
contributions on which UK tax relief was obtained, her pension
input amount would be £100,000 instead.
| Glossary ( RPSM20000000) |
