Changes for 2015/16

The budget of 8 July 2015 introduced a number of changes.  The most important of these was a re-alignment of the reporting years for all pension schemes to the tax year. From 6 April 2016 all pensions schemes have to report annual allowance in line with the tax year 6 April to 5 April.

To allow schemes to do this without adversely affecting their members HM Treasury has altered the rules regarding AA for  year only (2015/16).  These changes are:

  • AA pension input period was from 1 April 2015 to 5 April 2016.
  • the introduction of a pre and post alignment period.
  • available annual allowance for the pre alignment period of £80,000.00.
  • For the Scottish NHS, Teachers, Fire and Police pension schemes this was pension savings made from 1 April 2015 to 8 July 2015.
  • AA for the post alignment period, which was pension savings made from 9 July 2015 to 5 April 2016 of £0.00, there is allowable carry over from the pre alignment period of up to £40,000.00.
  • proportioning of the calculated annual allowance between the pre and post alignment period as dictated by HM Treasury.
  • Money Purchase AA pre-alignment of up to £20,000.00 with up to £10,000.00 available to carry over to the post alignment period.
  •  Where benefits have been flexibly accessed an alternative AA of £60,000.00 pre-alignment and up to £30,000.00 post alignment.
  • CPI for pension input start is increased for 2015/16 year only to 2.5%, not 1.2%.

For more information, please see 2015-16 Annual Allowance Transitional Rules.

Link to Scottish Government Website