RPSM15105120 - Technical Pages: Special annual allowance: Total adjusted pension input amounts: From 6 April 2009 to 22 April 2009 / 9 December 2009

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

What about the period between the start of the 2009-2010 tax year and 22 April 2009 or 9 December 2009?

Any increases in pension saving made between 6 April 2009 and

• 21 April 2009, for an individual with relevant income of £150,000 or more for tax year 2009-2010, or
• 8 December 2009, for an individual with relevant income of £130,000 or more but less than £150,000 for tax year 2009-2010

will be protected amounts.

This means that any contributions paid to other money purchase arrangements on or after 6 April 2009 and before (depending on the amount of the individual’s relevant income)

• 22 April 2009, or
• 9 December 2009,

will not be tested against the special annual allowance as part of a total adjusted pension input amount.

For cash balance and defined benefits arrangements it is the proportion of the pension input amount that relates to the period from on or after 6 April 2009 to immediately before (depending on the amount of the individual’s relevant income)

• 22 April 2009 , or
• 9 December 2009,

which is not tested against the special annual allowance as part of the total adjusted pension input amount.

For hybrid arrangements it is determined by reference to how the benefits accrued for the arrangement in question over the pension input period. For example, if the greatest amount by which the benefits accrued was on an ‘other’ money purchase basis then any contributions paid on or after 6 April 2009 and before 22 April 2009 / before 9 December 2009 will not count for the purpose of the special annual allowance as part of a total adjusted pension input amount.

However, protected pension input amounts have a bearing on an individual’s special annual allowance as the allowance gets reduced by the amount of the protected pension input amounts and ‘pre-22 April 2009 pension input amounts’ or ‘pre-9 December 2009 pension input amounts’ (see RPSM15102010). This can have the effect of reducing the allowance to nil if these amounts are more than, or equal to, the special annual allowance.