Annual allowance shake up: Pension input periods split into 'mini tax years'

Jonathan Stapleton
clock

The 2015-16 tax year will be split into two mini tax years for the purposes of the annual allowance as part of transitional rules, the government has announced.

In his Summer Budget, the Chancellor announced that from 2016-17 onwards, the annual allowance for tax-relieved pension savings would be reduced for those with incomes of more than £150,000. It will be cut by £1 for every £2 of income an individual has over £150,000 with a maximum reduction of £30,000. In advance of the introduction of this tapered annual allowance the government has introduced transitional rules to align pension input periods with the tax year by April 2016 and to protect any savings already made before Budget from retrospective tax charges. As part of the changes...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Majority of advisers think NI cut will not boost pensions savings

Majority of advisers think NI cut will not boost pensions savings

Only one in ten think people will put the extra cash into pensions savings

Isabel Baxter
clock 11 March 2024 • 1 min read
Partner Insight: Royal London's Fiona Hanrahan — 'Your top tax year end questions answered'

Partner Insight: Royal London's Fiona Hanrahan — 'Your top tax year end questions answered'

Fiona Hanrahan, Senior Intermediary Development and Technical Manager, Royal London
clock 08 February 2024 • 3 min read
Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Figure breaks down at £22m a day for the government’s coffers

Hope William-Smith
clock 21 July 2023 • 2 min read