InvestAcc Pension Administration

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Changes for new tax year 2020/21

at the office

Today marks the start of the new tax year, 2020/21; the following changes apply from today:

Annual Allowance

For relevant UK individuals under age 75, the standard Annual Allowance is £40,000 for those unaffected by the tapering rules or the Money Purchase Annual Allowance.

The tapering rules which were introduced from April 2016 have been amended, so that threshold income has increased from £110,000 to £200,000, adjusted net income increased from £150,000 to £240,000 and the minimum tapered annual allowance decreased from £10,000 to £4,000 (for those with adjusted net income exceeding £312,000 in 2020/21).

We understand that HMRC will confirm when their online annual allowance calculator has been updated to reflect these changes but in the meantime they recommend that it is not used for 2020/21 calculations.

Lifetime Allowance

The standard Lifetime Allowance for the tax year 2020/21 is £1,073,100.

April 6th, 2020