RPSM15102070 - Technical Pages: Special annual allowance: Amount
This guidance only applies for the 2009-10 and 2010-11 tax years.
Infrequent money purchase contributions - the relevant mean
| [para 17(2)&(3) Sch 35 FA 09] |
When infrequent contributions to an other money purchase arrangement have been paid in any of the tax years 2006-2007, 2007-2008 or 2008-2009 the average of those contributions is found by taking the average for those three tax years. If no such contributions were paid in one or two of those tax years the average is still taken over the three year period - the resulting figure is called the ‘relevant mean’.
Example
Following on from Examples 1 and 2 on RPSM15102060, Abigail’s total amount of infrequent contributions to an other money purchase arrangement for the 3 tax years to 5 April 2009 is £315,000. This is made up of
2006-2007 |
£215,000 (the actual amount paid in that tax year of £415,000 being capped at the amount of the annual allowance for that year) |
2007-2008 |
Nil |
2008-2009 |
£100,000 (£50,000 paid by Abigail and £50,000 by Abigail’s employer) |
The average amount of Abigail’s infrequent contributions is £105,000 ([£215,000 + ‘nil’ + £100,000]/3)
Abigail’s special annual allowance is £30,000 as the average amount of Abigail’s infrequent contributions of £105,000 exceeds £30,000.
| Glossary (RPSM20000000) |
