RPSM15104070 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated: Benefits accruing on the same basis for 20 members, other money purchase - testing pension inputs against SAA and AA

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

Benefits accruing on the same basis for 20 members with other money purchase arrangements - testing pension inputs against SAA and AA

Amounts of pension saving under

• new arrangements set up on or after 22 April 2009 / on or after 9 December 2009, or
• arrangements that are re-activated on or after 22 April 2009 on or after 9 December 2009, and
• that qualify as a protected pension input amount

will not be tested against the special annual allowance.

However, such protected pension input amounts continue to be tested in the usual way as a pension input against the annual allowance.

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).