Neil MacGillivray: Assessing the tapered annual allowance before tax year end

Case study

clock • 3 min read

As the tax year end approaches, Neil MacGillivray provides a brief reminder of the tapered annual allowance, and how advisers can ensure their clients retirement planning remains tax efficient

As we approach the end of the tax year, we are receiving quite a number of queries on tapering of the annual allowance (AA) and how it affects high income individuals, so I thought it would be worth sharing a brief reminder of how it works. A high income individual is defined by two income measures; threshold income and adjusted income. From 6 April 2020, if an individual's threshold income is £200,000 or less for the tax year, then they are not a high income individual in that tax year. Alternatively, if their threshold income exceeds £200,000 and their adjusted income for the tax ye...

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

Myth-busting HNW clients' most common misconceptions

Myth-busting HNW clients' most common misconceptions

‘I heard it from my mate down the pub…’

Rick Gosling
clock 13 March 2025 • 5 min read
Passing on wealth: How IHT changes will affect pension planning

Passing on wealth: How IHT changes will affect pension planning

'Change could result in significantly higher tax liabilities '

Joshua Croft
clock 11 March 2025 • 4 min read
How family farm businesses could be hit by Budget IHT relief overhaul

How family farm businesses could be hit by Budget IHT relief overhaul

Financial planner Luke Lodge's personal perspective

Luke Lodge
clock 10 March 2025 • 6 min read