This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Inequitable Annual Allowance tax rules

TinTaxMan
Posts:1
Joined:Tue Apr 04, 2017 1:14 pm
Inequitable Annual Allowance tax rules

Postby TinTaxMan » Tue Apr 04, 2017 1:37 pm

Is it fair or indeed correct that tax be assessed on excess of AA on a defined benefit scheme when a second defined benefit scheme has a negative result?

HMRC rules state each individual DB scheme must be considered separately and in isolation with excesses taxed and negative amounts floored at nil.

This seems inequitable when both DB schemes are provided by a single employer and benefits provided moved from one DB scheme to the other near retirement.

TTM

Return to “Savings & Investments, Pensions & Retirement”