RPSM15104080 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated: Benefits accruing on the same basis for 20 members, other money purchase - reducing the SAA
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 - reducing the SAA
Although the input amount is not tested against the special annual allowance, the total amount of protected pension inputs that an individual has in the 2009-2010 or 2010-2011 tax years reduces the 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.
Mark’s total protected pension input amount in 2009-2010 is £16,000. For the same tax year, Mark’s special annual allowance is reduced to £4,000 (being £20,000 - £16,000).
See also RPSM15104560 which sets out circumstances in which contributions to new and re-activated arrangements do not count as protected pension input amounts.
| Glossary (RPSM20000000) |
