Neil MacGillivray: Applying the annual allowance charge

It's apparent from the number of enquiries we have received of late, that more individuals are incurring an annual allowance charge. A quick look at HMRC statistics backs this up. When the annual allowance was reduced to £40,000 in 2014/15, 7,280 people were caught, but just four years later the number had almost quadrupled to 26,550 individuals. An annual allowance of £40,000 would appear generous to most of the British public as they are unlikely to ever exceed that amount, but it can be as little as £4,000 in certain cases.  If the annual allowance is exceeded in one year, then ...