Tax for exceeding annual allowance must be paid immediately

People who incur AA charges above £2,000 will be able to choose to pay the full cost from their pension benefit, and the tax must be paid at the point the charge arises. "Schemes will be required to operate this facility only where an individual has exceeded the AA outright within that scheme in the relevant year," a Treasury statement says. Schemes have "full flexibility" in how they implement the system of payment, but must ensure it is fair to all scheme members. In October 2010 the Treasury announced in April this year the AA will fall from £255,000 to £50,000 and the lifetim...