TAPERED PENSION TAX RELIEF FOR THOSE WITH HIGH INCOME

For most taxpayers the maximum pension input annual allowance is currently £40,000.

However, from 2016/17 those taxpayers with ‘adjusted income’ over £150,000 and ‘threshold income’ over £110,000 receive a tapered annual allowance.  For those persons affected the allowance tapers by £1 for every £2 that their adjusted income exceeds £150,000 down to a minimum annual allowance of £10,000.

The calculations of ‘adjusted income’ and ‘threshold income’ can be complicated.

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