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...

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