What is it?
There is a tax charge if you exceed the maximum pension Annual Allowance including any unused relief brought forward. This may be based on the contributions actually paid in the tax year by you and/or your employer, or by the increase in the value of your pension rights (known as accrual) if you are a member of a defined benefit pension scheme. We can check whether you have exceeded the limit and if so advise you of the tax charge.
Who is affected?
If you have made significant pension contributions, or have significant annual accrual in a scheme such as the NHS or Universities Superannuation Scheme, then we can advise you. Your Annual Allowance may be reduced if your adjusted annual income is over £240K (or £150K for years prior to 2020/21).
How can we help?
We can help you ensuring that you keep within the allowable limits, or declare the correct charge on your tax return.
What should I do next?
If you would like us to advise you on your Pension Annual Allowance, please contact Nick Chaitow in Critchleys Financial Planning.
First published 3 November 2020
Last Updated 3 November 2020
3 November 2020
This is for information purposes only. No action should be taken without seeking specific professional advice. Thank you.
Critchleys Financial Planning LLP is an appointed representative of Quilter Financial Services Limited (FCA Register number is 440703) and Quilter Mortgage Planning Limited (FCA Register number 440718), Wiltshire Court, Farnsby Street, Swindon. SN1 5AH, which is authorised and regulated by the Financial Conduct Authority.
The permitted business of Quilter Financial Services Limited and Quilter Mortgage Planning Limited is advising on and arranging pensions, investments, mortgages, life assurance and general insurance.
You can check this on the FCA’s Register by visiting the FCA’s website www.FCA.org.uk/register or by contacting the FCA on 0300 500 8082. The FCA address is: 12 Endeavour Square, London. E20 1JN
Find out more about Nick Chaitow