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

Safeguarding clients in a world of increasing HMRC activity

Safeguarding clients in a world of increasing HMRC activity

'It is important that financial advisers stay informed and proactive'

Louisa Beciri and Tom Lewis
clock 23 April 2025 • 4 min read
IHT receipts swell to record £8.2bn for 2024/25

IHT receipts swell to record £8.2bn for 2024/25

10% higher than last year, commentators note

Jen Frost
clock 23 April 2025 • 2 min read
HMRC gears up for an increase in criminal investigations

HMRC gears up for an increase in criminal investigations

'Criminal investigations are reserved for the most egregious cases'

John Hood
clock 17 April 2025 • 4 min read