RPSM15104050 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated: Arrangements relating to an employment

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

Different forms of protected pension input amount - arrangements relating to an employment

For the purposes of RPSM15104040 an arrangement relates to an employment where

• the earnings by reference to which benefits under the arrangement are calculated are earnings from the employment, or
• the employer in relation to the arrangement pays contributions under the arrangement in respect of the individual.

If, for example, a new scheme is being set up so that 20 or more members join at the same time the pension input amounts will be protected pension input amounts for each member provided the conditions above and in RPSM15104040 are met in respect of each respective arrangement.

It will also be acceptable for the individual to have an arrangement which otherwise meets these conditions where the individual was an employee of the employer, ceased to be an active member in relation to the arrangement but later re-activates the arrangement by becoming an active member again in relation to the arrangement. Although the member’s arrangement may not be one set up on or after 22 April 2009 / on or after 9 December 2009, it may still qualify as a consequence of being re-activated on or after 22 April 2009 / on or after 9 December 2009.

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).