We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Civil service- EPA and annual allowance

Hello

Can anyone confirm whether my understanding of EPA is correct? I'm in Alpha and at the moment am buying extra DB pension and paying AVCs. This has taken me over my annual allowance but it's ok this year as I have some allowance to carry forward.

However, from next tax year I won't have any allowance to carry forward. I understand that if I switch from buying extra pension to EPA -2 (the most I can do as my SPA is 67), the additional cost of building my EPA -2 (as opposed to ordinary Alpha) does not count towards my annual allowance.

Have I understood this correctly? Also am I right in thinking that I can't buy extra pension and EPA- it has to be one or the other in a given year?

Thanks very much for any help.

Comments

  • hugheskevi
    hugheskevi Posts: 4,581 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 8 October at 10:15AM
    You are correct that EPA does not generate a pension input, and so does not count toward Annual Allowance.
    You are incorrect in thinking you cannot buy extra pension and EPA, you can do both in the same year, subject to a limit on the total amount that is shared across Added Pension and EPA.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.9K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.1K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.5K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.