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The annual allowance for retirement savings has fallen to £40,000 from £50,000.
The change – with effect from 6 April 2014 – means pensions contributions in excess of the cap during a tax year may be subject to a charge, which must be declared on a self assessment tax return.
But unused allotments from previous periods can be carried forward for up to three years to cover excess contributions. There are two calculators:
The annual allowance for retirement savings has fallen to £40,000 from £50,000.
The change – with effect from 6 April 2014 – means pensions contributions in excess of the cap during a tax year may be subject to a charge, which must be declared on a self assessment tax return.
But unused allotments from previous periods can be carried forward for up to three years to cover excess contributions. There are two calculators:
- The standard pension savings annual allowance calculator for where the pension input amount has been consistently below the annual allowance for the past three years and there is no need to consider the carry forward rules.
- The enhanced pension savings annual allowance calculator for taxpayers who have been a pension scheme member in every year. The calculator will work out unused annual allowance to carry forward for 2008/09 to 2015/16.
