In April 2016, the tapered annual allowance for pensions was introduced for those with threshold income of £110,000 or more AND adjusted income of £150,000 or more.
For those caught, the annual allowance was tapered from £40,000 down to a minimum of £10,000.
In the recent Budget, the limits used in calculating whether a tapered annual allowance applies were increased but the minimum tapered annual allowance was reduced. In summary:-
· Threshold income limit is increased from £110,000 to £200,000
· Adjusted income limit is increased from £150,000 to £240,000
· The minimum tapered annual allowance decreases from £10,000 to £4,000
· Effective from 6th April 2020 (2020/21 tax year)
If you wish to discuss anything further then please give Hamlyns a call.
|For information of users: This material is published for the information of clients, contacts and prospects of Hamlyns. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.|