Annual Allowance charges for the 2014 to 2015 tax year ? Scheme Members

11 August 2015

You may know that from 6 April 2014 the annual allowance for tax relief on pension savings in a registered pension scheme was reduced to £40,000. Your pension scheme administrator will soon be issuing you with an annual allowance pension statement for the 2014 to 2015 tax year if you have contributed more than £40,000 to their pension scheme.

If you have exceeded the £40,000 annual allowance for the 2014 to 2015 tax year across all of your pension schemes and you do not have sufficient unused annual allowance to carry forward from previous tax years, you will have an annual allowance tax charge. You can find more information on annual allowance and carry forward at Annual Allowance Limit.

It is really important that if you have exceeded the annual allowance for 2014 to 2015 across all of your pension savings, you declare this on your Self Assessment Tax Return (the final deadline that you have to submit this by is 31January 2016).

Scheme administrators only need to provide you with a pension savings statement if you have contributed above the annual allowance in their scheme. So if your total contributions exceed the £40,000 annual allowance across all schemes you may not get a pension savings statement but you may still have exceeded the annual allowance.

You can use the online tools and calculators at Annual Allowance Calculator to help check whether you need to declare and pay an annual allowance tax charge, even if you haven't received a pension statement from your pension scheme administrator. You can find more information on paying tax charges at Tax on your private pension contributions - GOV.UK .