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Tapered Annual Allowance

I have a question regarding the reduction in Pension Contributions where threshold income is above £110k and adjusted income over £150k.

The rules say that salary sacrifice arrangements made prior to July 2015 do not have to be included in the threshold income figure.

Does this mean that if you have increased your SS element after July 2015, you get caught by this, even if the arrangement was in place prior to July 2015?

Comments

  • HappyHarry
    HappyHarry Posts: 1,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 30 August 2018 at 6:44AM
    mat5664 wrote: »
    I have a question regarding the reduction in Pension Contributions where threshold income is above £110k and adjusted income over £150k.

    The rules say that salary sacrifice arrangements made prior to July 2015 do not have to be included in the threshold income figure.

    Does this mean that if you have increased your SS element after July 2015, you get caught by this, even if the arrangement was in place prior to July 2015?

    Only the increase is included in the threshold calculation.

    See page 1 of link below;

    https://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0639

    Also example on page 3 below;

    https://www.pruadviser.co.uk/pdf/GENM675401.pdf
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
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