RPSM15103650 - Technical Pages: Special annual allowance: Protected inputs - existing: Other money purchase - not OPS, public service & GPP:
This guidance only applies for the 2009-10 and 2010-11 tax years.
Existing rate of regular contributions increasing
If the rate of existing regular contributions is increased on or after 22 April 2009 / on or after 9 December 2009 and the increase is not made in accordance with
- an agreement made before 22 April 2009 / before 9 December 2009 (see RPSM15103610), or
- a written application made before noon on 22 April 2009 / made before 9 December 2009 (see RPSM15103710),
only part of the pension input amount relating to the increased rate of contributions will be a protected pension input amount.
The protected pension input amount will be the pension input amount that would have occurred if the rate had not increased.
Where the above applies for a particular tax year in respect of an individual (because that individual’s relevant income is £130,000 or more for the tax year concerned), the references to 22 April 2009 apply in relation to an individual who has relevant income of £150,000 or more for 2009-2010. Otherwise the above would still apply but the references to 9 December 2009 apply instead (see RPSM15103025 for more details).
Example
Andrew has existing regular contributions of £2,000 per month which meet the conditions for a protected pension input amount. The total pension input amount in respect of those contributions would have been £24,000 (12 x £2,000) if the rate had not increased.
However, after 6 months the rate is increased to £3,000 per month. The total pension input amount now is £30,000 ([6 x £2,000] + [6 x £3,000]).
The protected pension input amount in relation to the total pension input amount of £30,000 is £24,000 (being the amount based on the monthly rate before the increase) and the amount which is not protected is £6,000 (being £30,000 - £24,000).
| Glossary (RPSM20000000) |
