HMRC reveals 25% fall in people breaching annual allowance limit

‘Thresholds for tapered AA rose to over £200,000’

Ayesha Venkataraman
clock • 2 min read

The total value of pension contributions that exceeded an individual’s annual allowance (AA) fell almost 25% from £1bn in 2019/20 to £764m in 2020/21, latest data from HM Revenue & Customs (HMRC) revealed.

HMRC has today (28 September) published figures for the amounts raised through AA charges - the standard rate of which is £40,000 per year since April 2014 - though some individuals will have a lower annual limit, particularly those on higher incomes. The government data provided two different ways of reporting the actual AA charges namely, either through self-assessment or through scheme accounting for tax (AFT) returns. It said the revenue from ‘scheme pays' charges and the tax due on contributions/accrual above the AA both fell in 2020/21, with the tax charges covered by ‘scheme pa...

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