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Annual Allowance 2016/2017

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The UK Government sets limits on the amount you can build up in your pension schemes each year and benefit from tax relief. This is known as the Annual Allowance (AA) and the limit for the 2016/2017 year is £40,000. The AA limit includes all superannuation and private pensions but does not include the Government State Pension.

Pension scheme administrators have a legislative requirement to send pension savings statements to members by 6 October 2017 if they exceed the Annual Allowance (AA) in their registered scheme. SPPA has provided members who have exceeded the AA with pension savings statement(s) detailing the Pension Input Amounts (PIA) i.e amount of growth in your pension values for 2016/2017. We have also provided you with PIA values for the previous 3 years as members can offset an AA breach in any one year against any spare unused allowance in the previous 3 years.
How to identify if you have incurred a tax charge

HMRC have developed a calculator www.tax.service.gov.uk/paac where you can enter the Pension Input Amounts (PIA) from your pension savings statement(s). This will show whether you have a tax charge or unused allowance from the previous 3 years.

If a tax charge is applicable any monies due must be submitted to HMRC by 31 January 2018.  You may have the right to ask SPPA to arrange payment of some, or all of your AA tax liability to HMRC. This is known as ‘Scheme Pays’ but SPPA will only accept a scheme pays election for your SPPA pension scheme liabilities. To qualify for ‘Scheme Pays’ you must meet the HMRC mandatory requirements. Please see further information on Scheme Pays.

The table below shows the Annual Allowance limits from 6 April 2011:

 Tax year   Annual Allowance 
 2017/18  £40,000
 2016/17  £40,000
 2015/16  £80,000
 2014/15  £40,000
 2013/14  £50,000
 2012/13  £50,000
 2011/12  £50,000

Changes have also been made from 6 April 2016 with the introduction of Tapered Annual Allowance for members with earnings over £110,000. Please see further information on these AA changes 2016/2017.

If you have received an Annual Allowance pension savings statement and have an enquiry about the earnings quoted, please contact your employer in the first instance.   All other enquiries relating to Annual Allowance  should be emailed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

Link to Scottish Government Website