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  • FIRST POST
    • billpaul812
    • By billpaul812 29th Nov 17, 9:30 PM
    • 47Posts
    • 3Thanks
    billpaul812
    40,000 Pension Allowance?
    • #1
    • 29th Nov 17, 9:30 PM
    40,000 Pension Allowance? 29th Nov 17 at 9:30 PM
    With what I have already contributed to the LGPS and my AVC this year and with me putting some of my redundancy lump sum into a SIP, I am going to exceed my 40,000 allowance. The HL calculator says the gross amount I can contribute this tax year is around 140K presumably using allowance from previous years.

    HL say that it is my responsibility to manage this. Do I have to do anything proactive and inform HMRC or will they know all this anyway?

    Thanks.
Page 1
    • Triumph13
    • By Triumph13 29th Nov 17, 9:36 PM
    • 1,117 Posts
    • 1,373 Thanks
    Triumph13
    • #2
    • 29th Nov 17, 9:36 PM
    • #2
    • 29th Nov 17, 9:36 PM
    You need to notify them if you exceed the maximum of AA plus carry forward. If you are inside that maximum then all you need do is keep records in case they ever question the amounts contributed, but you have no need to actually contact them to tell them you are using carry forward.
    • zagfles
    • By zagfles 29th Nov 17, 9:43 PM
    • 12,495 Posts
    • 10,496 Thanks
    zagfles
    • #3
    • 29th Nov 17, 9:43 PM
    • #3
    • 29th Nov 17, 9:43 PM
    With what I have already contributed to the LGPS and my AVC this year and with me putting some of my redundancy lump sum into a SIP, I am going to exceed my 40,000 allowance. The HL calculator says the gross amount I can contribute this tax year is around 140K presumably using allowance from previous years.

    HL say that it is my responsibility to manage this. Do I have to do anything proactive and inform HMRC or will they know all this anyway?

    Thanks.
    Originally posted by billpaul812
    The bolded bit implies you misunderstand how the annual allowance works. What you have contributed to the LGPS is irrelvant. It's a DB scheme. It's the increase in its value that counts towards the AA. You need the "pension input amounts" for each tax year (and both parts of the 2015/16 tax year). Ask the administrators, or check your statements.
    • bigadaj
    • By bigadaj 29th Nov 17, 9:44 PM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    • #4
    • 29th Nov 17, 9:44 PM
    • #4
    • 29th Nov 17, 9:44 PM
    With what I have already contributed to the LGPS and my AVC this year and with me putting some of my redundancy lump sum into a SIP, I am going to exceed my 40,000 allowance. The HL calculator says the gross amount I can contribute this tax year is around 140K presumably using allowance from previous years.

    HL say that it is my responsibility to manage this. Do I have to do anything proactive and inform HMRC or will they know all this anyway?

    Thanks.
    Originally posted by billpaul812
    The other limit is your taxable earnings for the year, so your salary plus taxable redundancy payment presumably, that's likely to be your limit for pensions on which you get tax relief.
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