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

11 August 2015

From 6 April 2014 the annual allowance for tax relief on pension savings in a registered pension scheme was reduced to £40,000.

You will soon be issuing annual allowance pension statements for the 2014 to 2015 tax year to all scheme members contributing more than £40,000 to your pension scheme. The issue of these statements is a legislative requirement of Finance Act 2011.

An annual allowance charge will be due where a member exceeds the annual allowance and does not have sufficient unused annual allowance to carry forward from previous tax years. Further information on carry forward can be found at Annual Allowance Limit.

Please remind your members that it is really important that those who have exceeded the annual allowance for 2014 to 2015 across all of their pension schemes declare this on their Self Assessment Tax Return (the deadline for submitting this is 31 January 2016). They’ll also have to pay a tax charge. Further information on paying tax charges can be found at tax on your private pension.

Your members can use our online tools and calculators to help check whether they need to declare and pay an annual allowance tax charge, even if they haven't received a pension statement. These can be found at Annual Allowance Calculator - Introduction.