Finance Act 2004—figures, rates and limits

Published by a ��˾��ҹ�� Pensions expert

Checklists

Finance Act 2004—figures, rates and limits

Published by a ��˾��ҹ�� Pensions expert

Checklists

Annual allowance

The annual allowance is the maximum amount by which the value of an individual’s pension savings across all the registered pension schemes of which they are a member may increase in any year without tax penalties arising. Employer contributions also count towards the annual allowance. Annual allowance figures are shown in the table below.

The annual allowance charge is levied where the annual allowance is exceeded.

For further information generally, see Practice Note: The annual allowance.

Tax year	Annual allowance (£)	Source
2023/24 onwards	£60,000, subject to: —tapering for individuals with an ‘adjusted income’ in excess of £260,000 p.a. and a ‘threshold income’ in excess of £200,000 p.a. Tapering will be a reduction of £1 for every £2 by which their income exceeds £260,000, subject to a maximum reduction of £50,000 for those with an adjusted income of £360,000 p.a. or more. In other words, the minimum tapered annual allowance is £10,000 (£60,000 – £50,000), and —money purchase annual allowance of £10,000 Alternative annual allowance (ie standard annual allowance less money purchase annual allowance): £50,000	Spring

Jurisdiction(s):

United Kingdom

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