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AA Calc - increase in deferred pension from previous job not included?
Shedman
Posts: 1,591 Forumite
Am I right that in calculating how much Annual Allowance has been used in current tax year (or previous years for carry forward purposes) in relation to DB schemes that you don't include the impact of any increases in level of pension from deferred DB pensions from previous employment as you effectively haven't contributed to them in the tax year?
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Comments
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http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/pensionschemes/annual-allowance/reduced.htm
"If you are a 'deferred member' of a scheme, perhaps because you have changed employer, you will have stopped contributing. However, in most cases, your expected pension will be up-rated by inflation for each year until you draw the pension. You do not need to take into account this kind of up-rating in working out pension savings for a tax year."
The above link is out of date since it refers to a £50,000 annual allowance, but the principle would hold good?0
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