RPSM15104030 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated arrangements: Protected pension input amounts

This guidance only applies for the 2009-10 and 2010-11 tax years.

Protected pension input amounts

[Para 8 to 13A Sch 35 FA09][The Special Annual Allowance Charge (Protected Pension Input Amounts) Order 2010 - SI 2010/429] 

Existing Arrangements

One form of protected pension input amount is an amount that represents an individual’s ‘existing regular pension saving’ during 2009-2010 or 2010-2011 that has continued since before 22 April 2009 / before 9 December 2009 that relates to pension arrangements that an individual had in place immediately before 22 April 2009 / before 9 December 2009. So this will apply to existing arrangements of the individual.

See RPSM15103000 onwards for details about protected pension input amounts under existing arrangements where the input amount has continued since before 22 April 2009 / before 9 December 2009.

Also, see RPSM15104410 where a single contribution is made under an existing arrangement where that contribution has been paid on or after 22 April 2009 / on or after 9 December 2009 in accordance with a written agreement between the individual and the employer where that agreement is made on or before 22 April 2009 / on or before 9 December 2009.

New and re-activated arrangements

The other form of protected pension input amount is that which relates to new pension saving arrangements that were set up on or after 22 April 2009 / on or after 9 December 2009 or where arrangements are re-activated on or after 22 April 2009 / on or after 9 December 2009. It is possible for such arrangements to produce protected pension input amounts provided certain conditions are met.

The conditions that must be met for a pension input amount to be protected pension input amounts in relation to a new arrangement set up on or after 22 April 2009 / on or after 9 December 2009 will depend on the circumstances of the new arrangement.

Pension input amounts under new arrangements will be protected pension input amounts where the input amounts meet the necessary conditions relating to:

• ‘relevant added years contributions’ - see RPSM15103170 
• ‘relevant additional voluntary contributions’ - see RPSM15103410 and RPSM15103520 
• new arrangements made in accordance with a written application received before noon on 22 April 2009 / before 9 December 2009 by, or on behalf of, the scheme administrator of a pension scheme that is not an occupational pension scheme, a public service pension scheme or part of a group personal pension scheme - see RPSM15103710 
• new arrangements under an occupational pension scheme, a public service pension scheme or part of a group personal pension scheme that are made in accordance with a written agreement between the individual and the employer where that agreement is made on or before 22 April 2009 / on or before 9 December 2009 - see RPSM15104090,
• a new arrangement that has replaced an existing arrangement on a like for basis - see RPSM15104100,or
• a single contribution that has been paid on or after 22 April 2009 / on or after 9 December 2009 in accordance with a written agreement between the individual and the employer where that agreement is made on or before 22 April 2009 / on or before 9 December 2009 - see RPSM15104410.

If the pension input amount is under a new arrangement that does not meet the necessary conditions relating to any of the respective circumstances listed immediately above, the input amount will be a protected pension input amount if it meets the relevant conditions set out in RPSM15104040 to RPSM15104080.

The conditions for a pension input amount to be a protected pension input amount under an arrangement that is re-activated on or after 22 April 2009 / on or after 9 December 2009 are set out in RPSM15104040 to RPSM15104080.

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).