RPSM15103040 - Technical Pages: Special annual allowance: Protected inputs - existing: Overview: Protected inputs reduce SAA
This guidance only applies for the 2009-10 and 2010-11 tax years.
How protected input amounts may reduce the special annual allowance
Although the input amount is not tested against the special annual allowance, the total amount of protected pension inputs that an individual has in each of the 2009-2010 or 2010-2011 tax years reduces the available special annual allowance for that individual for the respective tax year.
Example
Mark’s special annual allowance would normally be £20,000, as the average of the ‘infrequent contributions’ that Mark has made to other money purchase arrangements in the tax years 2006-2007, 2007-2008 and 2008-2009 does not exceed £20,000.
However, the total of Mark’s protected pension input amounts in 2009-2010 is £16,000. For the same tax year, Mark’s special annual allowance is reduced to £4,000 (£20,000 - £16,000).
| Glossary (RPSM20000000) |
