Claire Trott: Decisions to make on annual allowance charge

Decisions to make

clock • 4 min read

Due to the tapered annual allowance, many people are subject to an annual allowance charge, which can be a significant outlay, writes Claire Trott. Here she discusses client options which need careful consideration...

Hopefully, most clients will have received their pension savings statements for the tax year 19/20 and will have been able to calculate if they have an annual allowance charge. Due to the tapered annual allowance many people are subject to an annual allowance charge, which can be a significant sum of money. Thankfully when we are looking at the year ahead, we should see fewer people impacted down to the increase in the threshold and adjusted income figures for 20/21 onwards. For those who don't meet the mandatory scheme pays rules, they may well have to find these funds themselves or ...

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 Retirement

Partner Insight: PruFund arrives on Scottish Widows Platform

Partner Insight: PruFund arrives on Scottish Widows Platform

How integrating PruFund onto the Scottish Widows Platform expands retirement options for advisers without increasing administrative burden

Ross Easton, Head of Platform Propositions, Scottish Widows
clock 05 October 2026 • 3 min read
The conversation that has to change with the 100-year life

The conversation that has to change with the 100-year life

'Advisers need to continue to challenge the cliff-edge narrative directly with clients'

Graeme Bowden
clock 24 September 2026 • 4 min read
Client confidence boost from advice review in retirement fades after six months

Client confidence boost from advice review in retirement fades after six months

Widespread uncertainty about how much can be sustainably spent in retirement

Laura Miller
clock 16 September 2026 • 3 min read