RPSM15200050 - Member Pages: Special annual allowance: Overview: When your SAA is based on £20,000

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

When your special annual allowance is based on £20,000

Your special annual allowance will be based on £20,000 if you meet any of the following conditions

• you have not had any contributions paid in respect of you to an other money purchase arrangement in any of the tax years 2006/07 to 2008/09; or
• you have had contributions paid in any of the tax years 2006/07 to 2008/09 in respect of you to an other money purchase arrangement but these contributions are not classed as infrequent contributions - see RPSM15200080; or
• you have had contributions paid in any of the tax years 2006/07 to 2008/09 in respect of you to an other money purchase arrangement which are classed as infrequent contributions but their average value (see RPSM15200080) is not more than £20,000.

Contributions paid in respect of you include contributions

• paid by you;
• paid by your employer; or
• paid by someone other than your employer on your behalf.

As explained in RPSM15200040 this is your starting point for finding the value of your special annual allowance. You need to reduce the £20,000 by the value of any pension input amounts protected from the special annual allowance charge - see RPSM15202000.

In the year 2009/10 and if your relevant income is £150,000 or more, you also need to reduce this amount by the amount of any contributions paid in respect of you between 6 and 22 April 2009 (inclusive) that are not protected input amounts.

If your 2009/10 relevant income is £130,000 or more but less than £150,000 you should reduce this amount by any contributions paid in respect of you between 6 April and 9 December 2009 (inclusive) that are not protected pension inputs.