Pensions tax changes to income thresholds for calculating the tapered annual allowance

Following an increase in the threshold income and adjusted income, those individuals with a threshold income of between £110,000 and £200,000 and adjusted income between £150,000 and £240,000 will no longer be impacted by the tapered annual allowance.

Generally, the income limits used in calculating a tapered annual allowance is increased and the minimum tapered annual allowance reduced. The threshold income, which is net income before tax (excluding pension contributions), will rise from £110,000 to £200,000. The adjusted income, which is net income plus pension accrual, will also rise from £150,000 to £240,000.

For individuals who continue to be affected by the tapered annual allowance, the minimum tapered annual allowance will be £4,000 (currently £10,000).

These changes take effect for 2020/21 and will be effective for benefits accrued on or after 6 April 2020.

Added By: Sharon Worger on 12th Mar 2020 - 15:58
Last Updated: 12th Mar 2020 - 19:37

Number of Views: 231
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