United Kingdom – Reduced Annual Allowance: The Hidden Pitfalls for Members of UK Registered Pension Schemes |
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Background
The UK government has announced various changes to the current UK pension regime including a reduction in the annual allowance from the current limit of £255,000 (applicable for the 2010/11 tax year) to a limit of £50,000 (applicable for each of the tax years from 2011/12 to 2015/16 inclusive).
The Newsflash summarises the key points which should be taken into account when considering the likely impact of the reduced annual allowance on members of UK registered pension schemes. The issues covered include the impact on non-UK resident members and individuals who are made redundant or cease employment for some other reason, as well as potential pitfalls when the relevant pension input period for the scheme does not coincide with the UK tax year.
