Neil MacGillivray: Applying the annual allowance charge

Getting technical

clock • 4 min read

Neil MacGillivray has been delving into the minutiae of annual allowance legislation after a rise in the number of enquiries from clients on the topic...

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 ...

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