NHS pensions and the annual allowance

alison22 · 13 December 2018 at 11:28AM

Hello,
I'm just trying to get to grips with the pension growth needing to be added on to my earnings and the potential for exceeding the annual allowance and getting a tax charge.
When I am calculating my pension growth, adding my 95 scheme growth to my 2015 scheme growth, sometimes the 95 scheme has a negative growth (opening value is larger than the closing value). The Pensions Agency will summarise this as "zero" growth. Can I calculate the total growth as follows?

Total growth=growth in 2015 scheme- loss in 95 scheme

It makes a difference to my adjusted income, my annual allowance and of course whether I exceed the allowance/have carry over.

Thanks for any advice.

alison

Johnnyboy11 · 13 December 2018 at 1:54PM

Ask your pensions administrator for an AA usage statement for the last 3 tax years. That way you'll get the correct numbers, and have an audit trail if you ever need it.

hugheskevi · 13 December 2018 at 5:33PM

A pension input amount cannot be negative. Any negative values are treated as nil, eg, http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=728:what-happens-if-there-is-negative-growth-in-my-pension-savings-over-a-pension-input-period-pip-&catid=249

So in the example you give, total growth would just be growth in 2015 scheme.

GingerJim · 9 January 2019 at 7:33PM

No. If the difference between the start of the input period and the end are a negative value, you just call this zero. You cannot subtract this from the "growth" of your 2015 scheme for that time frame.
Jim

NHS pensions and the annual allowance

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