RPSM15200110 - Member Pages: Special annual allowance: Overview: Entering into avoidance arrangements will make you liable to the special annual allowance

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

Entering into avoidance arrangements will make you liable to the special annual allowance

The legislation for the special annual allowance has a number of anti-avoidance rules in it. The effect of these anti-avoidance rules is to nullify the intended effect of the avoidance arrangement.

For example if you try to manipulate your income level below £130,000 using an avoidance arrangement for the purposes of the special annual allowance you are assumed to have an income level of £130,000 so the special annual allowance rules will apply to you.

Another example of avoidance is trying to manipulate your pension input amount. RPSM15104500 to RPSM15104580 describes how the anti-avoidance rules work in this scenario.