Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Protect yourself

07 January 2014 / John Woolley , John Page
Issue: 4434 / Categories: Comment & Analysis , Investments , Pensions

Dealing with the effects of reduced pension allowances


  • The annual and lifetime allowances in a nutshell.
  • Timing of contributions for the annual allowance.
  • Protection for lifetime allowance reductions.
  • Elect for fixed protection 2014 and individual protection.
  • Care with QROPS.

When the “simplified” pension tax regime was launched in April 2006 it introduced two main pension allowances. These set out the limits on the tax-favoured pension savings available from registered schemes.

The annual allowance sets the annual limit of inflows of value (“total pension input amount”) to an individual’s pension funds without incurring tax charges. Each scheme/arrangement of the individual has a pension input period which is used in the assessment of whether the annual allowance has been exceeded.

The test is undertaken for each tax year and is based on the aggregate increase in...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon