Special annual allowance charge meaning

ARCHIVED This archived Practice Note reviews the pension reforms introduced by the Finance Act 2011, including changes to the lifetime and annual allowances, pension input periods and Scheme Pays; the easing of the obligation to take benefits at age 75; the lifting of age‑75 limits on lump sums and lump sum death benefits; issues around double taxation; and the disguised remuneration rules. It is not maintained and is supplied for background reference only. The Finance Act 2011 (FA 2011) received Royal Assent on 27 July 2011. FA 2011 put into law revenue‑raising proposals set out by HM Treasury in July 2010 and confirmed on 14 October 2010, following concern that prior proposals advanced by the previous government singled out higher earners only and added complexity to the tax system as a whole...

Contracting-out From 6 April 2016, contracting-out for defined benefit (DB) schemes ends. The reforms had first been planned for April 2017; however, a written ministerial statement issued on 19 March 2013 accelerated implementation by twelve months. The measures below arise from the cessation of contracting-out for salary-related occupational pension schemes with effect from 6 April 2016. Legislative changes necessary to implement the abolition of DB contracting-out The legislative amendments required to deliver the abolition of DB contracting-out are being made through: the Pensions Act 2014 (PA 2014), s 24, Schs 13–14. PA 2014 received Royal Assent on 14 May 2014 and, among other matters: provides for the repeal, from 6 April 2016, of specified contracting-out provisions in the Pension Schemes Act 1993 (PSA 1993), and introduces a statutory power for employers to amend occupational scheme rules, without trustee consent, solely to reflect higher employer National Insurance costs arising from the abolition of DB contracting-out, by increasing employee...