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Pension tax relief changes
Pension tax relief changes
Tax relief changes
The Government has made changes to the way tax relief will apply to pension savings. This section provides information on those changes.
Annual / lifetime allowance changes
Pension Tax Relief calculator
Will you be affected?
It depends on a number of factors. However, it is more likely to affect you if you are a high earner, have substantial membership and are paying AVC. But it may also apply if you receive a significant increase in pay (for example a new job or secondment).How to work out how much your pension benefit savings increase
You can work out the annual increase in pension benefits as below:(annual pension : the value at end of year minus value at year beginning plus inflation)
multiplied by 16
plus
(lump sum: value at year end - value at year beginning plus inflation) plus any AVCs made
Alternatively you can use the pension calculator link here.
Does this apply in the year I retire?
There is no exemption in the year you retire. Therefore the Annual Allowance test will be applied in the same way when ever you retire - whether at scheme retirement age of 65 or earlier.
