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 31 January 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 .
Annual Allowance charges for the 2014 to 2015 tax year – Scheme Administrators 12 August 2015
As the deadline approaches for scheme administrators to issue annual allowance pension statements to scheme members HMRC have issued some guidance in advance of publication in Pension Schemes Newsletter 71.
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 .
Pension schemes newsletter 71 14 August 2015
The latest Newsletter from HMRC includes information on a recent forum held to discuss operational issues relating to the recent changes to pension tax rules. Feedback from stakeholders also suggested that a more detailed explanation of ROPS and QROPS would be useful.
Newsletter 71 also includes information on:
CIPP Policy News Journal
25/04/2016, Page 367 of 453
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